Sample Magazine - Global Edition by gasworld

MARKETS – INTELLIGENCE – TECHNOLOGY ISSN 1755-3857 www.gasworld.com January 2020 Issue 177

GLOBAL EDITION

WHY EVERYTHING YOU KNEW ABOUT HELIUM IS ABOUT TO CHANGE HELIUM IN 2020 Signs of a market easing ahead?

2020 VISION Five things to watch in 2020

2020 VISION William J. Kroll exclusive column

INSIDE THIS ISSUE: MENA REVIEW • TALENT MANAGEMENT • BLM

CONTENTS

MENA Conference Review

MARKETS – INTELLIGENCE – TECHNOLOGY ISSN 1755-3857 www.gasworld.com JANUARY 2020 Issue 177

6-7 In perspective Messer supplies helium for Parade

52 In focus... Future-proofing industrial gases

8-33 News – Major companies join carbon capture project – DOE announces $43m for CCS projects – Big Star Energy acquires helium acreage

54 2020 vision Pivotal times of change for our industry

Helium Why everything you know is about to change

Helium Shortage 3.0 Still the big story heading into 2020

BLM closure Privatising the US Federal Helium Programme

Helium in South Africa Renergen project update

Helium market report Helium supply reliability comes at a price

10 minutes with... Swapnil Vichare

WHY EVERYTHING YOU KNEW ABOUT HELIUM IS ABOUT TO CHANGE HELIUM IN 2020 Signs of a market easing ahead?

56 10 minutes with... Joachim Rödiger

62 MENA Conference 2019 review A region with so many opportunities ahead

68 Company profile North American Helium 70 Community Events and tweets

2020 VISION Five things to watch in 2020

2020 VISION William J. Kroll exclusive column

INSIDE THIS ISSUE: MENA REVIEW • TALENT MANAGEMENT • BLM

58 Talent management The Future of Work

66 Equipment profile Jumper connections

GLOBAL EDITION

On the cover this issue Is everything about to change in the global helium business? From the shifting sands in sourcing through to the new applications on the horizon, this month we deliver all you need to know about the new normal helium business of tomorrow.

GASWORLD EDITORIAL ADVISORY BOARD

STEPHEN B. HARRISON

DAVID HURREN

PHIL KORNBLUTH

WILLIAM J. KROLL

PHIL BRICKELL

RAVIN MIRCHANDANI

Managing Director sbh4 GmbH

CEO, Air Liquide Advanced Business & Technology UK

President, Kornbluth Helium Consulting, LLC

Chairman and CEO Kroll Partners LLC

Independent

Director Mack Valves

January 2020 • gasworld | 03

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WELCOME

Global Managing Editor

Rob Cockerill

A glimpse of the new normal helium business

elcome to the January 2020 issue of gasworld magazine and our annual helium edition, this year with a rather bold cover statement! These are bold times in the global helium business after all. From shortage (2006/7) to balance, shortage (2011-2013) to surplus, and shortage (2018-2020) again as we write, the market has had to be brave in adapting to change over the last 15 years – indeed the BLM’s Sam Burton has described how managing the nation’s Federal Reserve was a quiet endeavour until shortages in 2006 made news around the world – and bold in unearthing new sourcing routes for the future. That’s been the story of the helium business over the last decade, and potentially for much of the year ahead too. So, you might ask, what’s different now – what’s behind our cover this month? Well, while Helium Shortage 3.0 is predicted to continue until at least 2021, with a slight easing in severity by the second half of next year, everything is about to change in the global helium business. Sourcing is changing and adapting, both in how helium is explored and where it’s sourced geographically – a change that many feel is long overdue. In fact, Noble Helium went as far as to say last year that “the accidental discovery of helium 100 years ago as a by-product of natural gas, has held back exploration for helium as a primary product. That can no longer be the case.” The company is among many relatively new players to have entered the helium business in recent years in the name of diversified sourcing. The pendulum of helium demand is also shifting geographically, with the Asia-Pacific region now leading the world in its demand for this product, while new applications are finally starting to emerge that could ultimately drive helium consumption forward in the years ahead. And with so many

MAGAZINE Publisher John Raquet

Publishing Director Martyn Hammond Global Managing Editor Rob Cockerill rob.cockerill@gasworld.com US Editor Nick Parkinson nick.parkinson@gasworld.com Senior News Journalist Joanna Sampson joanna.sampson@gasworld.com News Journalist Molly Burgess molly.burgess@gasworld.com

Senior Graphic Designer Mark Mitchell mark.mitchell@gasworld.com Graphic Designer Alice Whiston alice.whiston@gasworld.com Feature Writers Sam A. Rushing, Dr. Roy Irani, Stephen Harrison, Simon Augustus

MARKETING AND EVENTS

Head of Marketing and Events Alexandria Monk alexandria.monk@gasworld.com Delegate Sales Executive Catherine Shaw catherine.shaw@gasworld.com

significant new sources set to come on-stream from 2021 onwards, it’s projected that we could see a whole ‘new normal’ helium market by 2025. Phil Kornbluth, President of Kornbluth Helium Consulting, hinted at this prospect during his closing keynote speech at gasworld’s MENA Industrial Gases Conference 2019 in Dubai last month. “My feeling is that over-supply is more likely than shortages after the Gazprom Amur plant comes on-stream in 2021,” he said. “The message is, there’s a lot of projects coming over the next few years, and that’s exciting because we haven’t had that outlook for a while. So a very different market could exist by 2025,” he concluded, “but as always, crystal ball projections are not easy to make.” All of which means everything we knew about helium really is about to change: from the privitisation of the Federal Helium Reserve that has been the flywheel of the market for decades to the applications driving voracious demand in the years ahead. It’s all go, and we bring you up-to-speed with all the market developments over the coming pages. Before you go, I’m indulging a little in noticing that this is my 150th edition of gasworld magazine, an achievement I’m certainly proud of and for which your support through the years is not lost on me. It’s been a pleasure working with you all through these years, as contributors, readers, subscribers, advertisers and acquaintances – and I thank you all. I look forward to the next 150 and more immediately, the bold 2020 that we have in store. We hope you enjoy the ride with us once more this year! I’d also like to take this opportunity to thank all the speakers, sponsors and delegates at our MENA Conference last month, on behalf of us all at gasworld. Read a full review from the event from page 62. Until next month... ADVERTISING

Media Sales Manager Ron Leitch ron.leitch@gasworld.com Display Sales Executives Jonathan Herridge, Luke Dehaan, Jonny Ridd

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January 2020 • gasworld | 05

06 | gasworld â&#x20AC;¢ January 2020

Up, up and away: the cost of keeping the Parade afloat Each balloon in the Macy’s Thanksgiving parade uses as much as 300,000 to 700,000 cubic feet of helium, according to reports in the US during the Thanksgiving celebrations, claiming that every balloon costs a minimum of $510,000 as a result. These huge figures are matched by the scale of the balloons in question which, as we can see here, did not leave revellers wanting. A holiday tradition, the 93rd annual Macy’s Thanksgiving Day Parade was held on the morning of Thanksgiving in New York City in November. Messer provided a consistent supply of helium for the parade to keep the balloons afloat – including popular characters like Snoopy, Spiderman and SpongeBob SquarePants. “Messer is pleased to elate attendees at this year’s parade in close collaboration with Macy’s,” said Chris Ebeling, Executive Vice-President for Sales & Marketing, US Bulk at Messer. “It’s a great feeling seeing the smiling families that attend this tremendous event and watching the balloons make their way through the city streets.” “We are thrilled to continue our long-standing partnership with our helium supplier that keeps out balloons flying high each Thanksgiving,” said Susan Tercero, Executive Producer of Macy’s Thanksgiving Day Parade.

January 2020 • gasworld | 07

NEWS | IN PERSPECTIVE

EUROPE

Major companies join Dutch carbon capture project Project Porthos has signed an agreement with Air Liquide, Air Products, ExxonMobil and Shell to collectively work on preparations for the capture, transport and storage of carbon dioxide (CO2) in Rotterdam. Project Porothos, which stands for, Port of Rotterdam CO2 Transport Hub and Offshore Storage, is working to prepare the Port of Rotterdam to transport CO2 from industry and store it

“The carbon capture will take place at Air Liquide, Air Products, ExxonMobil and Shell refineries and hydrogen facilities in Rotterdam”

into empty gas fields beneath the North Sea seabed. The carbon capture will take place at Air Liquide, Air Products, ExxonMobil and Shell refineries and hydrogen production facilities in Rotterdam. The transport and storage of the CO2 beneath the North Sea will be prepared by Porthos. Carbon capture and

storage is an important element in achieving the Dutch Climate Agreement objects and is also needed for the production of climateneutral blue hydrogen, which will enable to Dutch hydrogen economy to quickly take off. The commitment from the four companies is not binding, and the businesses

can withdraw at any time. Other companies are also able to join the project. Project organisation has now started with the FEED phase, the project itself said. Several millions of euros will be spent on technical preparations in this phase. “That is why it is desirable that Porthos has a form of commitment from the business sector that they will actually use the CO2 infrastructure. This commitment has now been given by the four companies. This shows that there is more than sufficient interest from companies to supply CO2,” the project stated in a press release. RELATED ARTICLE ArcelorMittal to use hydrogen gasworld.com/2016929.article

Oil rig in the North Sea

Messer supplies welding gases for 3D printed bridge project in Germany

Messer has supplied welding gases to a unique research project involving the construction of a bridge using the Wire Arc Additive Manufactuting (WAAM) 3D printing process. Carried out by the Institute

08 | gasworld • January 2020

of Steel Construction and Mechanics of Materials at Technische Universität (Technical University) Darmstadt, the project involved using arc welding to melt a metal wire and build it up layer-by-layer.

Students erected a three metres long by 1.5 metres wide steel bridge running over water on the university grounds and tested an alternative method for bridge construction. Messer supported this project with its welding gas mixture Ferroline and its experience in this area. “In contrast to conventional manufacturing, 3D printing offers advantages in the production of complex components,” Messer explained in a press release. “The layer-by-layer construction makes it possible to produce complex structures that are difficult or impossible to achieve with conventional production methods.”

“In contrast to conventional manufacturing, 3D printing offers advantages in the production of complex components” “Often 3D printing is used for the production of single pieces or small series, because the construction of a conventional production is too expensive.” “Examples include hip prostheses and dentures in the field of medicine as well as turbine blades and turbochargers.” gasworld.com/europe

EUROPE

Ellen Daniels to replace Doug Thornton as BCGA CEO After 14 years at the helm of the British Compressed Gases Association (BCGA), CEO Doug Thornton is retiring and will be replaced by Ellen Daniels, the national trade body announced today. Currently the Head of Public Affairs and Policy at the British Coatings Federation, Daniels (pictured right) will join the BCGA in early 2020, before moving into the Chief Executive role in April. Building on Thornton’s successful legacy, Daniels has a remit to further develop the strong foundations established by Thornton during his time in the post. “Doug has played an invaluable role in broadening our safety, technical, health and environmental activities in the industrial, medical and food gases sector,” Tim Hulbert, BCGA National President, said. “We have grown in membership, significantly expanded our publications list and become a trusted source of information and guidance for government departments, agencies, a wide range of industry sectors and other important audiences.” The BCGA represents the interests of more than 100 member companies in the compressed gases sector, described by the association as the ‘invisible industry’, which makes a significant contribution to the UK’s economy and environment. Landmark initiatives have included the development of safer operating procedures for acetylene cylinders in fires, the introduction into law of the 2016 Psychoactive Substances Act and coordinated activity to

tackle rogue traders in metal theft and beverage gas supply. The BCGA has also supported the safe setting up, maintenance and operation of hydrogen and natural gas filling stations for a new generation of green vehicles. “Our members are at the heart of a well-regulated, long-established and highly skilled industry, which is constantly developing new technologies and opportunities,” Hulbert added. “As we look to the future, Ellen’s expertise will be invaluable in broadening our perspective.” “One of the biggest challenges our industry faces is attracting the talent of the future to our sector.” “We need to promote to the next generation of engineers, scientists, safety specialists, project managers and business developers that our industry offers the variety, opportunity and fulfilment they are looking for, and Ellen’s work in public engagement will play a key role in achieving that.” Achievements Thornton recently talked to gasworld about the association’s contribution to safety during his term of office, in the gasworld Industrial Gas Yearbook 2019/2020. “The whole raison d’etre of the BCGA is to drive safety,” he said, “which we do through a combination of over 100 well-respected guidance documents we produce (which are available for free download from the BCGA website) and effective

“One of the biggest challenges our industry faces is attracting the talent of the future to our sector...” interaction with Government Departments and Agencies, as well as other influential bodies’.’ “I’m proud of the transformation I have overseen,” he continued. “Our membership numbers and publications list have grown significantly in my time and we are much better connected with Government and the outside world’.’ Highlights of the BCGA’s contribution in Thornton’s time include: • Coordinating the BCGA coming together with the DfT, HSE, Transport for London and CFOA to fund BAM research on the behaviour of Acetylene Cylinders in Fires. • The BCGA was influential in getting the Psychoactive Substances Act (2016) made law, as a major step towards

curbing nitrous oxide (Laughing Gas) abuse as well as many other erstwhile ‘Legal Highs’. Thornton noted that he is still working on the significant remaining supply of 8g mini-canisters. • The BCGA had good success in persuading TV channels and producers to think again about broadcasting gas abuse stunts, such as the squeaky voice helium inhalation and celebrity chefs ‘frivolously’ using liquid nitrogen. • The revised Scrap Metal Dealers Act (SMD-2013) rendered it illegal to trade scrap metal for cash and cleaned up some of the misbehaviour in the scrap metal and recycling trades. • The BCGA has also worked hard with great help from the HSE, DfT and the beer and pub trade bodies, BBPA and BFBi, to try to clean up some of the rogue trade in beverage gas supply. NEXT MONTH BCGA Annual Conference 2020 A preview February 2020 edition January 2020 • gasworld | 09

EUROPE

New additive manufacturing partnership formed Oerlikon has entered into an additive manufacturing research alliance with Linde and the Technical University of Munich to develop new high-strength, lightweight aluminium-based alloys. The €1.7m research project, half funded by the Bavarian Ministry of Economic Affairs, hopes the newly developed alloys will be able to serve the safety and weight reduction needs of the aerospace and automotive industries. Producing the optimum aluminium alloy with a high content of lightweight elements like magnesium through an additive manufacturing process requires a deep understanding of chemistry, thermo- and fluid dynamics. During the manufacturing process, the metal powder is applied one layer at a time on

a build plate and melted using a laser beam. This fuses the metal powder together and forms the desired complex, three-dimensional geometries. The process takes place in a well-defined shielding gas atmosphere. “Using our proprietary software, which enables big data simulation and analysis, Scoperta-RAD, Oerlikon provides critical solutions for the development of new materials and performance optimisation of

available materials,” said Dr. Alper Evigen, Metallurgist at Oerlikon AM. “There are significant challenges during the additive manufacturing of aluminium alloys because the temperatures reached in the melt pool create an extreme environment that leads to evaporation losses of alloying elements that have comparatively low boiling temperature – such a magnesium,” said Dr.

Marcus Giglmaier, Project Manager, AM Institute and Research Funding Manager. “Additionally, the cooling rate of more than one million centigrade per second, create high stresses during the solidification process, which can cause micro cracks in the solid material.” “Characterising and controlling the gas process during additive manufacturing not only has the potential to prevent evaporation losses, but also to accelerate the entire printing process,” said Thomas Ammann, Expert in Additive Manufacturing at Linde. “Using a tailor-made gas chemistry for the new alloy would help to control the processes occurring in the melt pool and minimise the compositional changes of the alloys...”

DecarbonICE: Consortium to drive carbon capture for the shipping industry DecarbonICE, a consortium of leading ship companies, has teamed up with the Maritime Development Centre to develop an on-board carbon capture and storage solution. DecarbonICE is based on two new main ideas for the capture and storage of carbon dioxide (CO2), respectively. In the process, the CO2 and other greenhouse gases in the ship exhaust are captured on board in a cryogenic process and turned into dry ice. Proven offshore technology is then applied during normal ship operations to transport the dry ice into the seafloor sediments. Here the CO2 will be safely and permanently stored 10 | gasworld • January 2020

as liquid CO2 and CO2 hydrate. The use of such technology will help the shipping industry to achieve the International Maritime Organisation’s 2050 target of a 50% CO2 emissions reduction compared to the 2008 level. “While we support a final goal of availability of zero carbon or carbon neutral fuels, we believe that a bridging carbon free solution is needed, which can utilise existing assets in terms of shipping, propulsion systems and fuels,” said Henrik Madsen, Chairman of the DecarbonICE project and former DNVGL President and CEO. “The DecarbonICE project is

intended to offer exactly that, and at a predicated low energy penalty well below 10%.” The DercarbonICE project began its mission back in October (2019) and will run through 2020. The aim is to prepare a feasibility study to initiate the International Maritime Organisation (IMO) approval process for the technology. “As a leading a responsible shipping company, we have been studying many proposals for future propulsion systems and fuels to achieve the International Maritime Organisation 2050 target,” said Taizo Yoshida, Corporate Officer and General Manager

“The DecarbonICE project is intended to offer exactly that, and at a predicated low energy penalty well below 10%” of NYK’s Technical Group. “Vale wants to contribute to reduce emissions of its custoers and suppliers, and the shipping industry is included in this strategy. DecarbonICE is one of the technologies that has been studied by Vale in order to achieve this goal,” said Vagner Loyola, Ferrous Value Chain Director. gasworld.com/europe

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AMERICAS

Iwatani acquires Advanced Specialty Gases specialty and rare gases as well as complex mixtures. “Iwatani was a natural fit for our family to transition ownership to,” said David Stein, Owner and President of Advanced Specialty Gases. “Iwatani will continue to invest in the business to grow, expand its product offerings and bring enhanced value propositions to customers.” Joe Cappello, CEO of

Iwatani Americas, added, “Over the past 20 years, Advanced Specialty Gases has earned a solid reputation and built exceptional business and talented team.” “The business is a great platform for Iwatani to extend its global capabilities to serve customers in strong and growing markets and we are very pleased that Brian Hamilton, who has been an © Iwatani

Iwatani Corporation of America, a wholly owned subsidiary of Iwatani Corporation, has acquired Advanced Specialty Gases. The acquisition of the Nevada-based company marks Iwatani’s entry into the US specialty gases market. Advanced Specialty Gases serves a wide range of industries including electric utilities, semiconductor, mobility and chemicals. Company products include

Over the past 20 years, Advanced Specialty Gases has earned a solid reputation in the industry

“Iwatani will continue to invest in the business to grow, expand its product offerings and bring enhanced value propositions to customers...” integral part of Advanced Specialty Gases since its inception, has been named General Manager and will lead the team forward.” RELATED ARTICLE Iwatani makes Joseph S. Cappello appointment gasworld.com/2017765.article

Anova and Silicon Controls partner, presence further increased for Anova Anova, a New Jersey-based provider of industrial Internet of Things (IoT) solutions, has announced a partnership with Silicon Controls. The new deal will allow Anova to enhance its role in supporting the LPG and propane industry globally. Through the partnership, Anova will also increase its presence, and the availability of industrial IoT solutions in Europe, offer relevant business models to an expanding Asian and South American market, and support the rapidly growing use of technology across North America. The alliance was motivated by a shared approach to customer engagement, innovation and global engineering capabilities in tank telemetry, telecommunications, cloud 12 | gasworld • January 2020

applications and mobile platform. The companies’ combined capabilities will enable Anova to help its customer base transform logistics and redefine consumer services. “Our customers need a dependable partner that is heavily invested in developing next-generation technology solutions that will not only provide the lowest cost of ownership, but, quite simply, make their lives easier,” said Chet Reshamwala, CEO of Anova. “The new Anova team has over 90 years of LPG ad propane experience and intends to build on that, ensuring our customers have access to the best technology, equipment, partners and people support our customers’ needs.” Reshamwala was a

prominent speaker at gasworld’s MENA Industrial Gases Conference 2019 in Dubai, UAE last month, and described the increasing rise of digitisation, how this trend is inescapable and how industry as a whole is investing heavily in IOT technologies. He explained how these technologies and

the rich data they provide can not only make companies’ operations more efficient and cost-effective, but also make a huge impression with their customer base. REVIEW MENA Industrial Gases Conference 2019 Page 62

gasworld.com/northamerica

AMERICAS

DOE reveals $43m for carbon capture and storage The US Department of Energy (DOE) Advanced Research Projects Agency-Energy (ARPA-E) has announced $43m in funding to develop carbon capture and storage (CCS) technologies. The funded CCS technologies will enable power generators to be responsive to grid conditions in a high variable renewable energy penetration environment. The FLExible Carbon Capture and Storage (FLECCS) programme aims to develop technologies that address difficulties in decarbonisation of electricity systems, focusing specifically on complications in CCS design, operations and commercialisation potential with the increasing penetration of high VRE sources such as wind and solar power. “Flexible CCS technology has the potential to achieve unprecedented carbon capture that will revolutionise the market,” said Dan Brouillette, Deputy Secretary of the US DOE. “The FLECCS programme will quickly advance our carbon capture

released report from the Global CCS Institute at the UN climate change conference COP25. The Global Status of CCS 2019 Report: Targeting Climate Change shines a light on the next wave of CCS projects globally, while also highlighting the flexibility, applicability and increasingly positive economics The DOE revealed $43m of applying CCS to a range of in funding to develop emission sources. Phase two will CCS technologies The next wave focus on building of CCS projects is components, unit expected to focus on largeoperations, and small scale abatement, through prototype systems to reduce development of hubs and the technical risks and costs clusters. These capture carbon associated with CCS systems. dioxide (CO2) from multiple Projects will be selected to move from phase one to phase industrial installations and two at the conclusion of the use shared infrastructure initial funding period, based for the subsequent CO2 on the output and capacity transportation and storage to expansion analysis of the drive down costs. projects. There are now 51 large-scale The US is currently leading CCS facilities in operation or the way in CCS development under development globally and deployment with 24 in a variety of industries and large-scale facilities, followed sectors, the new report says. by 12 facilities both in Europe and the Asia Pacific region and three in the Middle East. That’s according to a newly

$43m

“The FLECCS programme will quickly advance our carbon capture technology to bring us closer to flexible, low-cost, net-zero carbon electricity systems” technology to bring us closer to flexible, low-cost, net-zero carbon electricity systems.” The FLECCS project programme will have two phases. Phase one will focus on designing and optimising CCS processes that enable flexibility on a high-VRE grid.

Quotes of the month “Doug has played an invaluable role in broadening our safety, technical, health and environmental activities”

“The business is a great platform for Iwatani to extend its capabilities in strong and growing markets...”

“This is the first time in Morocco that a manufacturer of industrial and medical gases has this award”

Tim Hulbert President BCGA

Joe Capello CEO Iwatani Americas

Youssef Guennoun CEO Maghreb Oxygène January 2020 • gasworld | 13

AMERICAS

Big Star Energy acquires further helium acreage Australian oil and gas exploration company Big Star Energy has leased a further 59,510 gross (14,877 net) acres across its prospect and lead portfolio in Colorado, in the US. The news came just two days after the company said it had acquired 63 new leases in Colorado at the State Land auction, which brought its gross to 27,104. “Big Star now has 86,614 gross acres in total, giving us an industry-significant lease position in this highly prospective helium area,” Joanne Kendrick, Big Star Managing Director, said. “Importantly this new lease also covers two additional

helium anomalies from our regional soil gas survey acquired earlier this year.” “We will continue to be guided by our regional soil gas survey and internal geologic model in consolidating our leasing

position as we prepare to permit our five-well drilling program early next year.” The new lease is for an initial term of five years with an option to renew for a further five years. If the company successfully produces helium or other products from the lease area, a 12.5% royalty will be

“Big Star now has 86,614 gross acres in total, giving us an industry-significant lease position in this highly prospective helium area...”

payable to the lessor and the lease term will be extended indefinitely until production ceases. The lease does not include any minimum work commitments, Big Star said. The company has agreed to pay a consideration of $75,000 to the lessor on completion of the acquisition of the lease, which is due on or before 1st April 2020, subject to due diligence. RELATED ARTICLES Helium Why everything you knew is about to change Page 34 Helium Shortage 3.0 Still the big story heading into 2020, Page 40

Svante partners with Cross River on industrial scale carbon capture projects

Svante Inc., formerly Inventys, has signed a collaboration agreement with Cross River Infrastructure Partners LCC to develop industrial scale carbon capture projects in North America. Connecticut-based Cross River will be responsible for project origination and financing the carbon capture and storage projects using Svante’s technology, as well as operating facilities that deliver

14 | gasworld • January 2020

captured carbon dioxide (CO2) to end-users. “We provide capital and commercialisation solutions to technology providers such as Svante to develop pipelines of small to mid-size projects with similar risk profiles,” said Andrew Wilder CEO of Cross River. “Our goal is to help unlock significant investment capital to accelerate the deployment of low-carbon technologies such as Svante’s.”

The partnership will focus on the Permian Basin in the US and in Canada’s western provinces, both of which have large CO2 storage potential, a wide range of commercial CO2 users, and a significant number of industrial sources of CO2, such as cement and hydrogen production. “With the development of new sustainable investment strategies, in combination with government policies such as the US’ 45Q tax credit to incentivise industry and transitional project financing, the financial sector is poised to support industrial scale carbon capture that will have a meaningful impact on climate change,” said Claude Letourneau, President and CEO of Svante. “An integrated project

“Our goal is to help unlock significant investment capital to accelerate the deployment of lowcarbon technologies such as Svante’s” delivery model is fundamental to ensuring carbon capture and storage projects can be financed and delivered with both cost and scheduling certainty.” “This partnership is critical to bring the cost of carbon capture within reach,” Letourneau continued, “creating jobs, generating wealth and incentivising industry to join the fight against climate change.” gasworld.com/northamerica

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ASIA-PACIFIC

Linde signs long-term deal with electronics client Linde’s joint venture, Linde LienHwa (LLH), will invest approximately $100m to build three new high purity onsite plants under a longterm agreement with a major electronics company in Taiwan, the world’s largest industrial gases group revealed in November. Linde will build, own and operate three state-of-theart SPECTRA generators to produce high purity nitrogen, oxygen, and argon. Following planned completion in 2021, the plants will have a combined total gas capacity of 125,000

Nm3 per hour to support the customer’s new multi-billiondollar wafer fab expansion. “LLH is proud to have been selected to provide critical high purity gases to our customer’s new wafer fab complex. This agreement is a recognition of LLH’s proven track record of more than 30 years of reliable supply to the semiconductor industry in Taiwan,” said Alex Tong, President of Linde LienHwa. LLH debuted its SPECTRA® EM line of electronic materials at the SEMICON Taiwan tradeshow in Taipei, Taiwan in September 2018,

a product line introduced to meet the growing demand of Taiwanese and regional customers in the semiconductor and display

industries. LLH is a joint venture of LienHwa Industrial Corp and the former Linde Group, now Linde plc.

New service centre from Sulzer reduces repair times for local industries Sulzer has extended its global network of service centres with the opening of a new facility in Balikpapan, Indonesia. The new service centre is positioned in a prime location to serve customers in oil & gas, mining, power and general industries, which dominate the surrounding area. Offering a comprehensive range of services for electric motors, compressors, pumps and steam turbines, the new Balikpapan service centre will deliver the wide range of highquality independent repair services that customers have come to expect from Sulzer. Equipped to maintain and repair all types of small to medium-sized rotating machinery, the service centre has been fitted with all the necessary tools, equipment and personnel to deliver equipment performance and longevity. Customers were 16 | gasworld • January 2020

“...investment in this new facility includes training of experienced local engineers to operate the new machinery” invited to attend the opening ceremony, which also featured many figures from Sulzer’s senior management. Agus Susena, Head of Rotating Equipment Services S.E. Asia for Sulzer, commented on the opening, “The new service centre offers excellent turnaround times and will provide local support for our customers.” “This combined with the vast wealth of skilled human resources and young talented graduate engineers opens up further opportunities for Sulzer to capture some of this valuable wealth of local talent.”

“The investment in this new facility includes training of experienced local engineers to operate the new machinery, such as the balancing equipment, winding tools and machining tools.” The new service centre improves the speed of service and reduces shipping costs by offering independent service solutions at the customers’ doorstep. As with all Sulzer facilities, customers are supported by a global network of spare parts manufacturing

and an extensive network of service centres. The opening of the Balikpapan service centre marks the 20th service facility in operation in the AsiaPacific region. This network gives Indonesian operations access to service solutions for even the largest of their rotating equipment. Initial assessments can be made by engineers in Balikpapan and any repairs completed at the larger service centre in Purwakarta.

gasworld.com/northpacific

ASIA-PACIFIC

MAN Energy Solutions celebrates milestone MAN Energy Solutions has delivered its 100th locallyproduced RIKT compressor, bound to drive a state-ofthe-art air separation unit (ASU) built by Air Liquide E&C Solutions for the Ruixing Group. To celebrate the major milestone, a celebration ceremony was held at MAN Energy Solutions China Production Co., Ltd in Changzhou, which was attended by 100 participants,

“We are looking forward to the successful installation and commissioning at our site...”

including representatives from key customers. “We are very proud to witness the 100th launch of our RIKT compressor,” said Dr. Uwe Lauber, CEO of MAN Energy Solutions. “Ten years ago, we overcame many challenges when we first decided to transfer the know-how from Europe to China. Today, we are glad to see the hard work of our global team has paid off as we have reached this new milestone with so many great partners.” “We appreciate the great work that the sales and project management team have done throughout the project,” said, Chen Dong, Senior Project Manager of Air Liquide E&C Solutions (China).

“We are looking forward to the successful installation and commissioning at our site.” “The 100th launch of our locally manufactured RIKT compressor is a notable milestone for our plant,” said Stjepan Kucifer, Managing Director at MAN Energy Solutions China Production Co., Ltd.

“In the future, we will continue to deliver quality machinery and offer our customers the very best in after-sales care.” The Changzhou site began manufacturing turbomachinery in 2009 with the first RIKT compressor being delivered on 16th November 2010.

Hubei Heyuan Gas set to be listed on China's Shenzhen Stock Exchange According to local Chinese news, Hubei Heyuan Gas has been approved for listing in the Shenzhen Stock Exchange. No more than 40 million ordinary A shares will be issued to raise around RMB 40m ($5.7m). The capital raised from the listing will be used for projects including the upgrade of gas technology of a branch company, a 70,000 tonnes-per-year food grade nitrogen project in Qianjiang, a gas recovery and purification project in Yichang, and a further gas operation centre. Established in 2003, the company now has 14 cylinder filling stations, two ASU sites, one 2,000 m3/h high purity

hydrogen generation site, one 100 m3/h high purity helium production site in Wuhan, and two LNG production sites in the province. Hubei Heyuan Gas’ operating revenues of 2017, 2018, and the first half of 2019 were RMB 575.2m ($82m), RMB 624.6m ($89m) and RMB 318.9m ($45.4m), respectively. The corresponding net profits were RMB 45m ($6.4m), RMB 75m ($10.7m), and RMB 40m ($5.7m), respectively. In the wider China industrial gases and equipment business, encouraging performances were reported across the industry in September, with

the fiscal releases of various companies. On the industrial gas side, positive results were announced by Suzhou Jinhong Gas, Hunan Kaimeite Gases, and Henan Xinlianxin Shenleng Energy while on the equipment and technology side there were strong results for Hangzhou Hangyang, Suzhou Oxygen Plant Co. Ltd, and Zhangjiagang Furui Special Equipment Co. Ltd, among others. For a company like Suzhou Jinhong Gas, the leading industrial gas company in the East China region, its interim results for 2019 revealed gross operating revenue in the first half of 2019 of RMB 545.6m ($77.7m), an increase

$5.7m

Around 40 million ordinary A shares were to be issued, to raise around $5.7m (RMB 40m) of 8.39% compared with the same period in 2018. Operating profit stood at RMB 93.25m ($13.28m), while gross profit and net profit, respectively, were RMB 93.3m ($13.3m) and RMB 77.3m ($11m), increases of 18% and 20.5% compared with the same period in 2018. RELATED ARTICLE Positive first half 2019 for major Chinese players gasworld.com/2017809.article January 2020 • gasworld | 17

ASIA-PACIFIC

COURTESY OF JAPAN’S THE GAS REVIEW

Third boom of land-based fish farming in focus, oxygen enrichment key According to The Gas Review, gas demand for the marine products industry is gaining attention, again. At the centre is the supply of oxygen to breeding ponds to promote more effective and sustained growth of farmed fish through oxygen enrichment. Business is expanding past the supply of oxygen to fish farms toward the sale of oxygen dissolvers for efficiently spreading oxygen in breeding ponds and even sales of complete fish farming systems. Behind this is the increasing popularity of landbased fish farming in water tanks installed on land. The Fisheries Agency has been promoting the development of fish farming technology to expand exports of Japanese-farmed fish centred around salmon, which is experiencing increasing global demand over the last few years. Traditionally, fish farming involved mainly ocean farming where ponds were separated near the coast using nets or other means. Now, the spotlight is on land-based fish farming where installation locations for breeding ponds are not limited to the coastline. There are two types of landbased fish farming. The first involves constant intake and discharge of water from the ocean or a river in a constant flow system. The other is a recirculating aquaculture system where the water is purified and not replaced to any great extent. Developed in Denmark, the recirculating aquaculture 18 | gasworld • January 2020

system is the newest method. With the closed recycling system, the ocean is not polluted with feed not consumed by the fish and stable production is possible because the system is not affected by natural disasters, such as typhoons. This type of system is therefore expected to become even more popular in the future. Setsuo Nohara is a pioneer in the development of land-based recirculating aquaculture systems and serves as an Executive Adviser to IMT Engineering, as well as a Secretary of Recirculating Aquaculture System Japan. According to him, this is not the first time a boom has occurred in land-based fish farming. “The first boom was in the 1980s and the second in the 1990s,” Nohara told The Gas Review. “Particularly for the second boom, local governing bodies paired up with large companies to undertake business viability projects, but the movement did not spread.”

“Oxygen in cylinders or liquid oxygen is over 99% pure and even oxygen from PSA is 90% to 93% pure...” “The main reason for the lack of interest was the cost. For land-based fish farming, you’re talking about hundreds of millions of yen, depending on the scale, for all the required facilities, from water

tanks and water processing facilities to gas generation equipment.” “To redeem the expenses, the farmed fish must sell at a reasonable price, but at the same time, cheap Asian

“...for companies that handle oxygen or oxygen dissolvers, this represents a business chance” farmed fish were being marketed, causing the market price to greatly fall, making any expectations of profit unreasonable.” “So the companies that participated in the viability projects did not advance into serious commercialisation.” That said, it is difficult for producers to control the market prices of farmed fish. Therefore, Nohara points out that the best means to promote new entries into land-based fish farming is to lower the cost of equipment to be introduced. “Oxygen in cylinders or liquid oxygen is over 99% pure and even oxygen from PSA is 90% to 93% pure,” Nohara said. “However, the oxygen required for fish farming does not have to be that pure. If cheaper oxygen generation equipment can be made available by lowering performance, that would be great.” Oxygen increases profitability Nohara asserts that supplying

oxygen is essential to increasing profitability of landbased fiish farming. “To ensure profit in landbased fish farming, you must perform high-density farming in which at least 3kg of fish is raised for each 1m3 of water.” “That means a lot more fish than in a natural environment, so it is necessary to introduce oxygen artificially to increase the concentration of dissolved oxygen (DO).” “However, the amount of oxygen required and the timing of when supplying oxygen is most effective depends on the type of fish.” “It is rare that land-based fish farmers measure the oxygen concentration daily and understand the optimum supply methods.” “On the contrary, for companies that handle oxygen gas or oxygen dissolvers, this represents a business chance.” “If these companies can propose oxyen supply scenarios based on real data on the relationship between oxygen concentration and fish growth, it will greatly lower the hurdle of introducing systems for fish farmers,” Nohara continued. “Incidentally, water processing facilities also play a vital role in land-based fish farming, just like oxygen supply systems.” “Particularly for closed recycling systems, where large growth is expected in the future, water processing is the most critical because the same water is recycled for six months to a year while sterilising it.” gasworld.com/northpacific

ASIA-PACIFIC

Linde signs MoU with Baowu Clean Energy Linde has announced the signing of a Memorandum of Understanding (MoU) with Baowu Steel Group’s new subsidiary, Baowu Clean Energy, to jointly cooperate on research and development to further develop China’s hydrogen market for industrial and mobility applications. The two companies will work together to increase the accessibility of hydrogen to industries and advance the acceptance of hydrogen mobility solutions in China. Under the agreement, Linde and Baowu Clean Energy will also explore the option to invest in liquid hydrogen plants and infrastructure. “We are delighted to build on our long-term partnership with Baowu Group with this latest cooperation to accelerate the development of hydrogen infrastructure and solutions for mobility and

other industrial applications,” said Sanjiv Lamba, Executive Vice-President and CEO Asia Pacific for Linde. “Linde with its technology leadership in hydrogen is delighted to be the strategic partner for the Baowu Group as we work together to make hydrogen accessible for users across China.” Guo Bin, Deputy General Manager of Baowu Steel Group, added, “This agreement with Linde marks an important new milestone

in our long and successful partnership.” “Linde’s expertise in hydrogen technology and solutions gives us the confidence that together we can transition to a cleaner low-

“This agreement with Linde marks an important new milestone in our long and successful partnership...”

carbon future for China.” Linde is a member of the global Hydrogen Council and the China Hydrogen Alliance which promotes hydrogen to help meet climate goals. The strategic agreement with Baowu follows Linde’s recent joint venture with UK-based ITM Power and underscores the company’s continued focus on delivering sustainable solutions in support of the global transition to cleaner energy. Baowu Clean Energy is a subsidiary of Baowu Steel Group, one of the world’s largest steel manufacturers. It was founded on 15th November 2019 to implement the group’s cleaner energy vision. The company will focus on the development of the hydrogen ecosystem in China, from production, to storage and distribution infrastructure and mobility concepts.

AIT Events gears up for IG China 2020 – and inaugural IG Asia 2020 Following 'another successful year' in which IG China, the China International Exhibition on Gases Technology, Equipment and Application, welcomed more than 5,000 visitors across its two-day event, the show's organisers are looking forward to two big shows in 2020. AIT Events has revealed that it will be holding its IG Asia Exhibition on Gases Equipment, Technology and Applications (IG Asia 2020) in Bangkok, Thailand from 27th 28th May 2020. The inaugural gathering will be held at the Bangkok Makkasan Expo Hall in the city. 20 | gasworld • January 2020

Less than four months later, and IG China 2020 – the 22nd International Exhibition on Gases Technology, Equipment and Application – will be held at the Hangzhou International Expo Centre in Zheijang Province, China from 22nd 23rd September. IG China has continued to grow since its inception back in 1999. At IG China 21 last year, more than 200 exhibitors from 20 countries and more than 5,000 visitors were in attendance at the event, which focused on a celebration of the development of China’s air separation industry over the past 20 years. It also

featured an award as part of this theme, namely the 2019 China Listing of World Air Separation Enterprise award, sponsored by China Gases Website and gasworld. The award invited leading air separation equipment and equipment manufacturers to participate, with Hangzhou

Oxygen Group winning the Outstanding Contribution Award. Linde Engineering (Hangzhou) Co., Ltd., Sichuan Air Separation Equipment Co., Ltd., Chengdu Cryogenic Liquefaction Equipment Co., Ltd., Suzhou Oxygen Machinery Co., Ltd. won the leading Enterprise Award. gasworld.com/northpacific

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MIDDLE EAST

Qatar: LNG capacity to grow, helium set for boost? State-owned Qatar Petroleum will raise Qatar’s liquefied natural gas (LNG) production capacity to 126 million tonnes per annum (mtpa) by 2027, an increase of 64% from the current 77 mtpa. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, also announced that new studies have revealed that the North Field’s productive layers

ethane, and helium. extend well into Qatari Qatar’s expansion land in Ras Laffan, plans, with four paving the way new production for a new LNG Qatar Petroleum will production raise LNG production facilities, known as LNG trains, is project in the from 77 mtpa to 126 potentially a boost north of Qatar. mtpa by 2027 for future worldwide Minister Alhelium supplies which Kaabi confirmed gas would help ease the current reserves of the North Field exceed 1,760 trillion cubic feet, shortage, and is potentially a new Qatar 4. in addition to more than 70 “During the past two years, billion barrels of condensates, and massive quantities of LPG, Qatar Petroleum worked diligently to determine the degree to which the North Field extends towards the south west, as well as the possibility of production from Qatar’s northern coastal onshore areas,” Minister AlKaabi said. “I am pleased to announce that our appraisal efforts have borne fruit, and that we have confirmation that the productive layers of the North Field extend well into Qatari

2027

land in Ras Laffan. Studies and well tests have also confirmed the ability to produce large quantities of gas from this new sector of the North Field. “These are very important findings, which will have a great positive impact on Qatar’s gas industry, and which will move it forward into bigger and wider horizons. These results will also enable us to immediately commence the necessary engineering work for two additional LNG mega trains with a combined annual capacity of 16 million tonnes per annum.” “This will raise Qatar’s LNG production from currently 77 million tonnes to 126 million tonnes per annum by 2027, representing an increase of about 64%. It will also raise Qatar’s overall hydrocarbon production to about 6.7 million barrels oil equivalent per day.”

AFRICA

Maghreb Oxygène award a first for industrial and medical gases producer Maghreb Oxygène has been selected as the Best Medical Gas Supplier 2019 in the MENA Region by Capital Finance International. Marking the first time a manufacturer and distributor of industrial and medical gases has been presented with the award, CFI recognised the company for its quality of services and its pioneering role in medical gases in the region. “This is the first time in Morocco that a manufacturer and distributor of industrial and medical gases has 22 | gasworld • January 2020

received this award, and we are both delighted and proud to receive this award in recognition of our efforts,”

said Youssef Guennoun, CEO of Maghreb Oxygène. Maghreb Oxygène is synonymous with the

Morcoccan industrial gases business and currently has three production facilities in the country, ensuring that quality control is a constant throughout its network. Back in August 2018, the company announced a renewed visual identity with a new logo and customercentric slogan, as pictured left on one of the company's delivery vehicles. RELATED ARTICLE

MENA Industrial Gases Conference 2019 review Page 62 gasworld.com/middleeast

AFRICA

Renergen breaks ground at flagship gas project “The next phase for us now is to explore that sandstone and determine how much we have at this 11% concentration...” The company held a groundbreaking ceremony recently, and provided a project update to gasworld for this month's helium edition. In it, the company notes that, “The average concentration across the proven reserve is around 3%, but we’ve discovered a sandstone trap in the eastern portion of the field where we are recording helium concentrations of

Emerging helium and LNG producer Renergen has broken ground at its flagship gas project in South Africa. At the end of October the company said it had commissioned the project, also South Africa’s first commercial LNG and liquid helium plant. Renergen said this was the final milestone before construction could commence on phase one of the project. Phase one will produce around 2,700 gigajoules of LNG and 350 kg of liquid helium per day starting in 2021. This will be increased to around 1.2 tonnes and 5 tonnes of helium per day in phase two.

up to 11%. That’s contained in sandstone about 300m from the surface and has very good porosity and permeability.” “The next phase for us now is to explore that sandstone and determine

exactly how much of the helium reserve that we have at this 11% concentration.” RELATED ARTICLE Helium in South Africa A Renergen project update Page 44

Air Products South Africa receives Responsible Care Awards from CAIA Ending the year on a positive note, Air Products South Africa has received two awards at the Chemical & Allied Industries’ Association (CAIA) Responsible Care Awards Ceremony, held in Johannesburg in midNovember (2019). The annual CAIA Responsible Care Awards are an opportunity for members to showcase projects, initiatives and successes. Last year, Air Products was awarded two awards, the first being the 2019 Responsible Care Sustained High Performance Award “We are extremely honoured to receive this award as safety is a crucial element in processes throughout our entire organisation,” said Maropeng Bahula, General Manager of 24 | gasworld • January 2020

Air Products South Africa. “It is good to see that our efforts to make safety a way of life for employees are noticed and embraced by all. At Air Products we embrace the ethos ‘nothing is more important than safety.’” The second award was the 2019 Responsible Care Initiative of the Year Award © Air Products South Africa

Winner for Corporate Social Responsibility Projects for its #WitnessHappiness project. Coined three years ago, the #WitnessHappiness project enables Air Products employees to select an early childhood development centre in their community to support for three years. “Our Corporate Social

Responsibility (CSR) Committee agreed to the project approximately three years ago and we committed to different centres nationally,” said Arthi Govender, Market Research and Strategy Manager at Air Products South Africa. “During this three-year cycle, employees could visit the centres and spend time with the children on specific days. The children also received gifts and other learning aides, and infrastructure improvements were done at a number of them to ensure a safe and hygienic environment for the children.” “I cannot wait to see what joy, happiness and positive change the next three-year cycle will make at the newly selected centres.” gasworld.com/africa

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TECHNOLOGY

CAIRE launches portable oxygen concentrator build successful retail sales programmes throughout the world,” said Barry Hassett, Vice-President of Global Marking at CAIRE. “We see continued enhancement of the proprietary delivery features on the FreeStyle Comfort as meeting our critical mission © CAIRE

CAIRE, a Georgia-based oxygen supply manufacturer, has announced the launch of a new FreeStyle® Comfort® portable oxygen concentrator equipped with autoSAT® technology. The addition of the autoSAT, a proven selfadjusting, proprietary clinical feature, ensures the device consistently delivers the oxygen bolus as the user’s respiratory rate changes throughout their daily routine. “The FreeStyle Comfort continues to expand as an integral part in how home care providers serve their oxygen patient base, and also

to bring clinically effective and convenient oxygen therapy solutions to those individuals with Chronic Obstructive Pulmonary Disease.” The enhanced FreeStyle Comfort is designed to be comfortable to wear due to its unique ergonomic design. The device meets FAA guidelines for use on commercial air flights, and offers wireless connectivity to CAIRE’s telehealth solution, CAIREview™. CAIRE showcased its latest innovation at the MEDICA show which took place at the Dusseldorf Exhibition Centre in

Germany between 18th-21st November (2019). CAIRE was a business unit of Chart Industries until its divestment in December 2018 as part of the latter's strategic restructuring. The divestiture of CAIRE Medical was part of a strategic decision by Chart to focus on its core cryogenic capabilities and offerings after it announced the acquisition of Italy-based VRV S.r.l. and its subsidiaries for €125m (approx. $147m) in September 2018. CAIRE was sold to Japanese company NGK SPARK PLUG CO., LTD. for around $133.5m, complete in December 2018.

Messer to debut freezer and cryogenic chilling innovation at IPPE

Signal Group launches advanced continuous oxygen analysers range

Messer will debut its innovations in cryogenic freezing and chilling at the International Production & Processing Expo (IPPE) in Atlanta between 28th-30th January (2020). At the event, Messer will showcase its new ‘Hot Products’ freezer and a precision cryogenic control system for mixer chilling. “As meat and poultry processors increase production, our food

Signal Group, a UK-based manufacturer of gas analysers, has launched its latest parameter to be added to its advanced range of Series 4 continuous gas analysers. The new Aurora, a paramagnetic oxygen analyser, is able to provide accurate percentage measurements in incineration processes, inert atmospheres, medical and safety for humans, internal combustion engine exhausts, and many other applications. The Series 4 instrument is supplied with software for remote access and control over the internet, and with optional touchscreen colour display, the Aurora is simple to operate on site. Users are able to specify their required configuration

team can help take them to the next level of productivity, often while improving food quality and safety,” reflected Chris Ebeling, Executive Vice-President for Sales & Marketing, US Bulk at Messer. The ‘Hot Products’ freezer, is suitable for sealing in moisture and increasing yield of cooked products such a marinated chicken wings, breasts and fillets while preventing ice from impacting operations. By combining cryogenic and crossflow technologies, the tunnel freezer can reduce dehydration losses by up to five times that of mechanical methods and up to three time that of conventional r cryogenic freezers. e ess ©M Messer will be located at booth #B4035 at the event.

26 | gasworld • January 2020

and programmable contact closures are available for gas path control. With remote access, users are able to perform a number of key functions from the office including, analyser setup and configuration, remote viewing of readings, the collection of logged data and remote troubleshooting; all of which saves the time and cost of site visits. RELATED ARTICLE AMETEK introduces new analyser

gasworld.com/2018168.article gasworld.com/technology

January 2020 â&#x20AC;¢ gasworld | 27

HYDROGEN

Iwatani and ITM Power form partnership in US Iwatani Corporation of America and ITM Power have signed a collaboration agreement for the deployment of multi-megawatt electrolyser-based hydrogen energy systems in the North America region. Through the agreement, the Iwatani Corporation subsidiary and UK-based energy storage and clean fuel company hope to reduce pollutants and improve

air quality by offering renewable hydrogen to the transportation, energy storage and renewable energy sectors in North America. “We are very pleased to have signed this agreement and be collaborating with ITM Power to meet the needs of customers who have committed to transitioning to low-carbon-intensity derived hydrogen as an energy source,” said Joe Cappello,

CEO of Iwatani Americas. “ITM Power’s worldleading electrolysers and Iwatani’s vision for growth in the North American green hydrogen market align very well and we look forward to deploying projects together.” The collaboration enables the two companies to share opportunities and, where a commercial case exists, work together on an exclusive basis to deploy ITM Power’s PEM electrolysers and Iwatani’s gas handling and deployment solutions. “Iwatani Corporation is a recognised leader in the hydrogen industry, and we are delighted to be collaborating with the company in North America,” said Dr. Graham Cooley, CEO of ITM Power. “Transport refuelling is

“ITM Power’s worldleading electrolysers and Iwatani’s vision for growth in the North American green hydrogen market align well...” just the tip of the iceberg for demand for hydrogen from renewable sources and this partnership will be well positioned to participate in the exciting and rapidly growing industry.” Iwatani Corporation has also recently acquired USbased Advanced Specialty Gases. RELATED ARTICLE Iwatani acquires ASG Page 12

HyGear appoints Gerrit Stoelinga as company’s new Chief Financial Officer HyGear has appointed Gerrit Stoelinga as Chief Financial Officer, effective 18th November (2019). Stoelinga’s new position sees him join the HyGear Senior Leadership Team alongside HyGear’s CEO, Marinus van Driel. “We are delighted that Gerrit joins us at this time, as we recognise that financial expertise will be a critical

“...we recognise that financial expertise will be a critical success factor in the next stage of HyGear’s corporate development” 28 | gasworld • January 2020

success factor in the next stage of HyGear’s corporate development,” said van Driel. Stoelinga previously served as Regional CEO of ING Wholesale Banking in Asia Pacific where he managed a network of 17 offices in 14 countries including China, Japan and Singapore. Prior to

that, Stoelinga served various senior management roles within the company. It’s been a busy year for Netherlands-based hydrogen generation specialitst HyGear. The company signed a new agreement with UK testing, inspection and certification (TIC) company Kiwa Gastec

to supply hydrogen through onsite generation in March 2019. In June it signed a longterm hydrogen supply contract with a Belgium-based glass producer, and followed that up with a double development in July 2019. Firstly, HyGear announced the expansion of its hydrogen tube trailer fleet in Europe due to such increasing demand and secondly, the company established a joint venture company with Buse Gases – titled BUSE HyGEar – to produce, fill and distribute hydrogen in the fast-growing UK market. Commencing initial operations in August 2019, the new JV is expected to be fully operational in the first quarter of 2020. gasworld.com/hydrogen

HYDROGEN

Air Liquide, DLVA and ENGIE to drive green hydrogen Air Liquide, the Durance, Luberon, Verdon urban area (DLVA) and ENGIE are signing a cooperation agreement to develop the ‘HyGreen Provence’ project, aiming to produce, store and distribute green hydrogen. Initiated in 2017, ‘HyGreen Provence’ aims to develop and validate the technoeconomic conditions for the production of 1,300 GWh of solar electricity, together with the production of renewable hydrogen on an industrial scale through the electrolysis of water. Air Liquide and ENGIE are committed to the development of hydrogen solutions and will join forces with the DLVA urban area which showcases multiple resources for the project. Consiting of 25 municipalities and a population of 65,000, the DLVA urban area will help benefit the project through its high levels of French sunshine,

“Entering into the partnership heralds a groundbreaking alliance between large industrial groups in France, and a local authority...”

substantial land availability and a salt cavity storage site able to accommodate the largescale centralised production of renewable hydrogen. The hydrogen produced from the project will be used in a variety of applications such as mobility, energy and industry, both locally and regionally. “We are pleased to contribute to this flagship project, which will demonstrate, in France, on an industrial scale, the key role that hydrogen will play in the energy transition,” said Guy

Salzgeber, Executive VicePresident and member of the Air Liquide Group’s Executive Committee supervising industrial merchant, hydrogen and innovation. “First and foremost, HyGreen Provence is an ambitious and innovate regional project. It will embrace all those desiring consultation and dialogue, particularly the National Parks in Verdon and Luberon,” said Bernard Jeanmet-Péralta, DLVA President. “Entering into the

partnership heralds a groundbreaking alliance between large industrial groups in France, and a local authority, that will accelerate the emergence of massive renewable hydrogen production projects in France,” said Gwenaëlle Avice-Huet, ENGIE’s Vice-President in charge of Renewables. The project will be developed in several stages with first deliverable expected by the end of 2021 and a possible final step in 2027. RELATED ARTICLE Green hydrogen in the city gasworld.com/2017641.article

Air Liquide and Sinopec open hydrogen stations in Shanghai, China Air Liquide and Sinopec have opened two new hydrogen stations in the Jiading district of Shanghai, China. In early November, gasworld reported that the

“...the upgraded facilities are equipped with Air Liquide Houpu upto-date hydrogen equipment and technology”

French industrial gas giant and Asia’s largest refiner signed a memorandum of understanding to accelerate the deployment of hydrogen mobility solutions and will provide competitive hydrogen supply solutions to the Chinese clean mobility markets. The new hydrogen stations feature a delivery pressure of 35 MPa and a capacity of 1,000kg of low-carbon hydrogen per day each, but are soon to be equipped with an additional 70 MPa

delivery pressure dispenser. Rebuilt from original gas stations, the upgraded facilities are equipped with Air Liquide Houpu up-todate hydrogen equipment and technology and have a capacity to meet the needs of the 200 hydrogen fuel

cell logistic trucks that are deployed in the area. China is in focus where hydrogen is concerned, for the fast build-out of network. RELATED ARTICLE The hydrogen economy in China gasworld.com/2017655.article January 2020 • gasworld | 29

LNG

Chart completes Europe’s largest LNG station to the development of the Chart Industries, Inc. has global LNG infrastructure completed the installation and ranging from liquefaction to commissioning of Europe’s marine to transportation,” said largest LNG fuelling station Jill Evanko, Chart’s CEO. for AlternOil GmbH. “AlternOil GmbH The station, located on continues Germany’s main A1 to offer highway near the city of Bakum, will be operated by AlternOil, Approval of the station following final by local authorities was approval by local set for December authorities expected in 2019 December (2019). “We continue to contribute

“We continue to contribute to the development of the global LNG infrastructure ranging from liquefaction to marine to transportation”

2019

maximum operator convenience through flexible, full-service truck centres that incorporate full integration of Chart equipment with other aspects of the station, including AlternOil’s cashless payment system.”

The station features Chart’s “Saturation on the Fly” technology which eliminates methane emissions to atmosphere and recognises both spark ignited and compression engines, allowing the station to fuel all LNG trucks. AlternOil is planning further LNG filling stations in Germany, including in Fulda, Cologne, Hamburg, Bremen and Remscheid. Evanko spoke of Chart Industries’ passion for LNG and related markets in a 2019 interview with gasworld magazine. In it, she described how Chart is active thoughtout the entire LNG value chain and sees “significant opportunity to participate.” RELATED ARTICLE Interview: Jill Evanko, Chart gasworld.com/2017502.article

US signs highest volume of LNG export contracts, above Mozambique A new report from GlobalData, a data and analytics company, reveals that the US has signed five long-term contracts in 2019 for the export of 22.3 million tonnes per annum (mtpa) of LNG. Titled, Global Long-Term LNG Contracts Review, 2019 – Golden Pass Signs High Volume Contract with Ocean LNG, the report highlights that the contract signed between Golden Pass Products and Ocean LNG Limited had the highest export volumes with 15.6mtpa. “The other major long30 | gasworld • January 2020

term LNG contracts signed for export of LNG from the US include a contract signed between Driftwood LNG and Total Gas & Power North America for export of 2.5mtpa of LNG from 2023 and 2038,” said Sunrita Dutta, Oil and Gas Analyst at GlobalData. Mozambique signed the second highest long-term LNG contract volumes in 2019 with 9.7mtpa. Mozambique LNG signed all the contracts for export of LNG with different purchaser companies. “Canada and Papua New Guinea account for the

remaining long-term LNG contract volumes signed for 2019. Both countries

have signed contracts for export of 0.8mtpa of LNG, respectively.”

LNG contracted capacity and share signed by key exporting countries in 2019 vs 2018

Source: GlobalData, Oil and Gas Intelligence Centre

gasworld.com/lng

LNG

Gasum set to acquire two Linde LNG businesses Energy company Gasum is to acquire AGA’s Clean Energy business and Nauticor’s Marine Bunkering business from Linde AG. Through the acquisition, several assets will be transferred to Gasum including an LNG liquefaction plant, two LNG terminals, two LNG bunkering vessels, and 48 gas filling stations in Sweden and Norway, respectively.

The transaction will improve access to competitive natural gas and biogas, multiply the available

“The acquisition of AGA’s Clean Energy and Nauticor’s Marine Bunkering businesses is an integral part of our growth strategy”

LNG logistics capacity and expand Gasum’s Nordic gas filling station network. “The acquisition of AGA’s Clean Energy and Nauticor’s Marine Bunkering businesses is an integral part of our growth strategy,” said Johanna Lamminen, Gasum CEO. “This acquisition enables Gasum to supply and to ensure the availability of a competitive, low-emission form of energy to meet the demands of industrial, maritime and road transport customers in the Nordic countries.” The acquisition will strengthen Gasum’s strategy by develop the Nordic gas market and creating a platform for a broader offering to its customers in the maritime, industry and road transport segments, as well as accelerating the

company’s growth strategy for cleaner transport solutions in the Nordic heavy-duty vehicle market. “We are very excited about this transaction which is an important step for our company when building the Nordic gas ecosystem and answering the increasing demand for low-emission energy solutions from customers,” he added. The transaction is subject to relevant approval from competition authorities. The transaction is anticipated to be completed during 2020. Gasum opened a new gas filling station offering LNG and liquefied biogas (LBG) for heavy-duty vehicles (HDVs) in Sweden in September. The new station located in Torsvik is Gasum’s fourth gas filling station in the country.

PitPoint continues build-out with Europe’s first fixed LNG bunker station PitPoint has opened Europe’s first fixed LNG bunker station for inland vessels in Niehler Hafen, Cologne, Germany. The station, co-financed by the European Union, is part of PitPoint LNG’s plans to develop a European LNG infrastructure for heavy road and water transport. “We are very proud to welcome the first fixed LNG bunker station in Europe at our port in Niehl, Cologne,” said Jan Sönke Eckel and Wolfgang Birlin, Managing Directors at Port Manager, RheinCargo.

“We see this tank system as the next building block in our approach to achieve even more sustainable and environmentally friendly transport.” “We also facilitate the sustainability of the associated logistics. LNG stands for a reliable and clean fuel alternative. The use of this fuel helps to reduce the emissions of pollutants.” “We therefore see the use of LNG as an important step towards a sustainable future for the logistics sector.” The fixed bunker station is accessible 24/7 and has

professional service engineers who provide bunker guidance. In the future, it will be possible to have two ships bunkered at the same time. October saw PitPoint, together with Total, open its first LNG refuelling station for trucks in Belgium. Located in Rekkem, near the French border, the new LNG station adjoins an existing Total station at the LAR transport centre, close to the E17/A14 motorway that connects Kortrijk and Lille. The new station will operate 24/7 and is equipped with two LNG pumps and

“We therefore see the use of LNG as an important step towards a sustainable future for the logistics sector...” three staging areas for trucks that run on LNG. PitPoint said the new location site in Belgium with Total represented a “concrete step towards the realisation of an international LNG network in north-west Europe.” January 2020 • gasworld | 31

LNG

EVOL LNG commits to major capacity expansion

“Our expertise in small-scale LNG and proven capability to deliver lower cost and cleaner LNG is enabling off-grid mines to move away from diesel...”

and is managed within the Kleenheat business. The Kwinana LNG plant, constructed in 2008 with a nameplate capacity of 175 tonnes per day, will increase its capacity to 250 tonnes per day from April 2020, with plans for a further potential expansion to approximately 300 tonnes per day in 2021. The newest addition to EVOL LNG’s growing mining customer base is Adaman Resources’

Kirkalocka Gold Mine. It is anticipated that Adaman Resources will save more than $2m per year and reduce its greenhouse gas emissions by 25% by fuelling the mine’s power station with LNG instead of diesel. EVOL LNG’s Manager LNG and Wholesale Nick Rea said the business was well positioned to make the most of a number of new growth opportunities in the pipeline. “Our expertise

40%

EVOL LNG’s Kwinana LNG production facility is to undergo major expansion with a 40% increase in production capacity by April 2020. Wesfarmer’s LNG business said the move is driven by growing demand from the mining sector to replace the use of diesel for power generation with a cleaner and more cost-effective solution. EVOL LNG is Australia’s leading provider of LNG for transport, power generation and industrial applications,

The site will undergo major expansion with a 40% increase in production

in small-scale LNG and proven capability to deliver lower cost and cleaner LNG is enabling off-grid mines to move away from diesel,” he said. “We are in advanced negotiations with several parties, and our confidence in future growth prospects has enabled us to commit to the first stage expansion, with Front End Engineering Design (FEED) underway for the second stage expansion.” “We are fortunate that the Kwinana plant can be expanded with relatively minor investment in a manageable, staged process as demand grows.” EVOL LNG currently has agreements in place with seven mining customers in the Goldfields and Mid-West regions of Western Australia and operates a growing fleet of over 30 road tankers to service its customers’ requirements.

Baleària, CMC Cerezuela and ESK test innovative high-speed LNG bunkering Spanish shipping company Baleària, CMC Cerezuela and ESK have tested an innovative high-speed LNG bunkering technology at a speed six times higher than the usual average. Performed at Huelva Port, the companies said it is the first LNG Multi Truck To Ship (MTTS) bunkering carried out

“...for Baleària the strategic alliances with companies that innovate in this sector are very valuable” 32 | gasworld • January 2020

in Spain. The MTTS supply method developed by the manufacturer of gas storage and transport systems CMC Cerezuela and carried out on 16th November on the Baleària ferry Marie Curie, incorporates innovations that prevent flow losses and allow a high supply speed. For this purpose, a manifold capable of connecting the three tanker vehicles is used which, at the same time, also incorporates a discharge system with cryogenic pump. The discharge speed reached was 2.800 l/min,

but the objective, after this first test is to reach 3,000 l/ min (180 m3/h). The result would be then a supply to the ship six times faster than the usual method, known as Truck To Ship (TTS), which is supplied to the ship by a single tank trailer and uses to reach a discharge speed of about 30m3/h. In the case of TTS it is necessary to supply with multiple tank trailers to fully load the tanks of the ship, with bigger capacity, a logistical difficulty that adds to the limited mooring times in port of the ships and can be improved by the method Multi

Truck To Ship. The Marie Curie ferry, which is 186m long and can sail at 24 knots, has two LNG storage tanks with capacity for 300m3 and autonomy for 963 miles. This is the newest vessel in Baleària’s fleet (incorporated this July) and the fourth in the company to operate on gas, with five more set for 2021. “...for Baleària the strategic alliances with companies that innovate in this sector are very valuable,” said Adolfo Utor, President of Baleària, who also thanked the Port Authority and the Maritime Captaincy of Huelva. gasworld.com/lng

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SPECIAL FEATURE | HELIUM MARKET

Helium Why everything you know is about to change By Rob Cockerill, additional words by Nick Parkinson

hange: an act or process through which something becomes different; change may be used for such a difference in a thing that it becomes something else; change may also be used for substituting one thing for another. These are just a few small definitions of change, something that the global helium business has become accustomed to through the years. Whether it’s been the legislation affecting the market (think the Helium Privitization Act of 1996 and more recently the Helium Stewardship Act of 2013), or the sharp swings from balance to critical shortage, it’s been through process change, subject to substitution in some applications, and a market ever-evolving. For all of the change the industry is so used to, however, there’s even more of it to come in the year(s) ahead. Here’s five reasons why everything we know – or thought we knew – about the helium business is about to change in a big way. 1. The pendulum is about to swing… once again From shortage (2006/7) to balance, shortage (2011-2013) to surplus, and shortage (2018-2019) to now, some sense of balance surfacing again in 2020. That’s been the story of the helium business over the last decade or more, and where it could be heading in the year ahead. Helium Shortage 3.0 is the freshest market squeeze in our minds, traced back to two of the world’s major suppliers beginning to ration supply to contracted customers in February 2018 and the origins of which actually traced back to June 2017 and the enforcement of the Qatar embargo, which saw roughly 30% of global supply taken off the market for 34 | gasworld • January 2020

several weeks and a major disruption to supply logistics. This same event caused the US Bureau of Land Management (BLM) to begin allocating the supply of crude helium to the four helium refiners (Air Products, Linde, Messer and Keyes Helium) who depend on the BLM for feedgas. While helium markets temporarily returned to near normal during autumn 2017, the BLM never discontinued its allocation of crude helium feedgas, and logistics for helium from Qatar remained challenging. With renewed growth in demand over the last few years, largely due to a strong global economy and the rapidly growing Chinese market, and gradually diminished production capacity as a result of a dwindling BLM stockpile, a lack of new capacity coming into the market, and other sources producing less than nameplate capacity due to a lack of feedgas, the market moved from tightness to shortage. The deliverable capacity from the BLM has been reduced to less than half of what it once was – that’s taken around 2 billion cubic feet per year of supply off the table. And that BLM supply source is going to be off commercial market completely in just over 18 months’ time, with that helium reserve to be privatised from 30th September 2021. Shortage, or at the very least tightness, had become the new normal again over the last two years and yet, all that is changing again. The view is that the worst of Helium Shortage 3.0 may be behind us, even if the gas industry and many helium users continue to struggle with helium supply allocations and high prices. Tight supply conditions through some, or all, of 2020 are perhaps to be expected,

but the feeling is that the pendulum is swinging again towards a ‘much more favourable environment’ for 2021 and beyond (see Phil Kornbluth’s projections from page 40) and we will see the first signs of that later this year. During the five-year period from 20212025, Kornbluth explains, new projects could result in more than 3.5 billion cubic feet (Bcf) of annual capacity entering the market. With current effective capacity of around 6 Bcf, “it is not hard to conclude that helium supply should be a lot more plentiful from 2021 forward than it has been in recent years.” 2. The geographic needle is moving Where all of this new supply is going to come from is part of the next big area of change in the global helium business – the geographic needle is definitely moving, on many levels. We will soon see, and are already seeing, a phasedown in the significance of the US on global helium supply dynamics. Historically the biggest supplier of helium worldwide and with the BLM-operated Federal Helium Reserve in Texas as the renowned ‘flywheel’ for global supply in particular, that market dominance is transitioning to the east, with the Amur project in Siberia and of course Qatar helium projects of special note here. As already discussed, the BLM supply source is going to be off the commercial market completely in just over 18 months’ time, with the helium reserve to be privatised from 30th September 2021. While the clock ticks down on this big moment, we will see Air Products’ expansion of its Arzew, Algeria source and the start of production from the problemgasworld.com/specialfeatures

SPECIAL FEATURE

beset Qatar 3 source ease some of the tightness in the market. Continuing the movement of the needle eastwards, the start of production from Gazprom’s Amur Project should end Helium Shortage 3.0 completely by Q2 2021, if it has not eased already. Gazprom’s project, which will extract helium from natural gas that will be transported to China through the Power of Siberia Pipeline, will eventually add 2.1 Bcf per year to world capacity in three 700 million cubic foot (mmcf) per year increments that are currently expected to come online in 2021, 2022 and 2024. While Gazprom’s project will be the most important factor in determining the balance of supply and demand post 2021, important contributions are also expected from other new helium sources. Irkutsk Oil Company, a large independent producer of oil and gas in the Irkutsk Region of Russia, is building a 266 mmcf per year plant around 200km north of the city of Ust-Kut, expected to start up in 2022. Saudi Aramco is also planning a 230 mmcf per year plant that is expected to start up in 2023, while a Qatar 4 helium project is also mooted.

Qatargas announced its intention to expand LNG production capacity from 77 million tonnes per annum (mtpa) to 110 mtpa by 2024 and while no announcement has been made about a corresponding fourth helium plant, it is felt that a Qatar 4 plant with a capacity of 800-900 mmcf per year is a safe assumption once the new LNG capacity is commissioned. South African company Renergen, a South African company, is also planning to produce 25 mmcf per year of liquid helium from its Virginia Gas Project, which will produce both LNG and helium commencing in 2021. Further still, the company is evaluating an investment to expand the plant’s helium production capacity to around 100 mmcf by around 2023. Read more about Renergen’s project activities in our interview from page 44. Staying in Africa, Helium One Limited and Noble Helium Pty Ltd are both exploring for helium in the Rukwa Basin of Tanzania, with drilling activity expected to commence soon. Noble Helium is making particular waves in this area, securing first rights to 6,115 square kilometres of mineral exploration rights in the country through its 100%-owned Tanzanian subsidiary and making significant additions to its team in the last year. Noble Helium’s Senior Advisory Team now also includes Kent Masters, Phil Kornbluth, Albert Stromquist, and Professor Eric Roberts, in addition to its existing executive team of Walter Jennings, Executive Chairman, Justyn Wood as CEO and founder, and Professor Andrew Garnett, Non-Executive Director and a geologist with more than 25 years of worldwide experience in conventional and unconventional hydrocarbon exploration, appraisal and development. Jennings told gasworld last year that the company’s development strategy in Tanzania is aimed at commercial reality by 2024 and represented the biggest investment opportunity in 100 years of helium exploration. In addition to all of these large-scale

projects, there is a lot of other activity taking place to develop new helium sources and some of this activity will result in new production capacity (see ‘Sourcing is evolving’). In the Southwestern US, and especially in the Four Corners area, there are a number of start-up companies who are seeking to recover helium from nonhydrocarbon sources. The geographic needle is also moving in terms of helium demand hubs or hotspots – China and the Asia-Pacific region as a whole is fast emerging as the major demand hub for helium markets, largely driven by a currently strong electronics market and new applications emerging. Sustainable strong growth is anticipated for several years in electronics, with helium demand intensity only increasing as semiconductor process complexity accelerates itself. With China aggressively carving out its own semiconductor sector, there is clearly much optimism here where helium demand is concerned. Read more about the shift in applications later in this article. 3. Sourcing is evolving How helium is sourced is changing too, and this is arguably one of the most enterprising and exciting aspects of the ‘new normal’ helium business. For most in the industry, and for many industrial end-users too, the common knowledge about this in-demand gas is that while it may be so abundant on Earth and in our atmosphere, it’s actually such an incredibly complex resource to realise in the state that we require it to be. Helium is ultimately, a complex, fragile and expensive supply chain, subject to geopolitical risk and in dire need of diversification. As a by-product – traditionally – of natural gas exploration, the helium business is at the mercy of its feedstocks and often complex investment decisions. Investments which are also expensive and yet for an oil and gas major, for example, not particularly lucrative when compared to the primary reward of a natural gas project. In fact, Noble Helium believes that, “The fact is that the accidental discovery January 2020 • gasworld | 35

SPECIAL FEATURE | HELIUM MARKET

of helium 100 years ago as a by-product of natural gas, has held back exploration for helium as a primary product. That can no longer be the case.” And in this author’s humble experience, helium projects are seldom delivered to their planned timelines either, due to the sheer complexity of these projects and often unforeseen issues such as challenges with the feedgas or the pipeline involved. But much of that is, to an extent, about to change. There are dynamic new players emerging in the marketplace, new helium exploration efforts, and new means of capture and recovery. Geologists and geophysicists for these companies are constantly striving to find new areas that they think are attractive for helium exploration, and it is true that these exploration efforts will still be subject to lengthy processes in surveying, permitting, and operational set-up. They may also be subject to seasonal factors or unforeseen complications. But they key differential is that they will not be linked to natural gas production – these will be helium-led explorations and scoped as such from the start. Many such efforts are already underway in North America, some highlights of which are covered here. Weil Group One company which is producing helium for helium’s sake only, is Weil Group Resources, which claims to be the only non-major to export helium from North America to Asian customers. “We’re a small-bit player but every little bit helps in this critical marketplace where the logistics are a challenge, the geopolitical security supply is a challenge and growing demand is not being matched with the supply,” Jeff Vogt, Weil Group CEO, told gasworld last year. “We’re just doing our small bit outside of the oligopoly, establishing unique relationships with unique customers who frankly are tired of the unpredictability and unreliability of supply. Given we don’t have third party reliance like the others do, like Qatar, Algeria and BLM (US Bureau of Land Management), we are looking to be more reliable.” 36 | gasworld • January 2020

Weil was the first company in 60 years to bring commercial grade helium on-stream in Canada, when it began operations at its Mankota, Saskatchewan helium purification facility in early 2016. The company has been active in Canada since 2012 and has continued extensive exploration and development in search of the increasingly rare element. Royal Helium Royal Helium is one of the largest helium leaseholders in Canada with 366,125 acres, and progressing towards drilling for helium in Saskatchewan, Canada early this year (2020). The company plans to begin drilling once it has completed its advanced exploration on the remaining land package and has a more complete identification of drill targets. Royal recently completed the first phase of exploration at its Climax property in southwest Saskatchewan, and identified seven drill targets for primary helium production. It intends to repeat this exploration programme on its remaining land holdings in southwest Saskatchewan, with the aim to significantly increase its drill target inventory and de-risk its remaining land holdings in the region. Saskatchewan has some of the world’s highest concentrations of uranium and so is one of the few places that produces primary helium, while all of Royal’s lands are in close vicinity to highways, roads, cities and, importantly, close to existing oil and gas infrastructure – with a significant portion of its land near existing helium producing locations. North American Helium Staying in Canada, and North American Helium (NAH) is set to make some significant steps with its helium projects in Saskatchewan and Utah this year, ahead of production in 2021. The Calgary-based private helium exploration and production company – founded in 2013 – controls three million acres of helium mineral rights in North America, primarily in Saskatchewan, and has invested $40m on land, geologic and geophysical exploration, and drilling and completion operations.

Battle Creek will be NAH’s first producing field, where it has discovered and developed substantial proven helium reserves. NAH has also discovered four new helium fields through the drillbit. NAH expects to put one of the wells in its Cypress field on to production around the start of Q2 2020 using a smaller modular helium purification unit. Depending on how drilling goes in early 2020, NAH is also exploring some options to put some of its Utah assets on to production around year-end 2020. Desert Mountain Energy In the US, Desert Mountain Energy (DME) is about to start drilling at its Heliopolis Project in Arizona. DME completed all of its planned 2D seismic studies in the Holbrook Basin, Arizona, last summer. The Canada-based company has also been expanding its helium exploration activity, and acquired an additional 3,169 acres under lease for helium, oil and natural gas in Holbrook Basin in September, to take its total acreage under lease there to 42,911. Two of the world’s richest historic producing helium gas fields, the Pinta Dome and Navajo Springs, are situated in this region, where historic production of 9.23 Bcf comes with high grades of helium gas produced, ranging from 8%-10%. DME has also recently been given permits to drill two new primary wells during the next six months at the company’s Kight-Gilcrease Sand Unit (KGSU) oil field (approximately 883.7 acres) in Seminole County, Oklahoma. Helium One From the Americas to Africa, and Helium One is hoping to be a major worldwide supplier of helium from its project in Tanzania, eastern Africa; it is thought that Tanzania could be a future major supply of helium for the global market. Helium One, founded by Australian geologists Josh Bluett and Thomas Abraham-James in 2015, is the sole owner of 4,760 km2 under licence, and licence claims that have not yet been processed and granted (by the Tanzania government) on a further 600km2 for a total of 5,360km2. gasworld.com/specialfeatures

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SPECIAL FEATURE | HELIUM MARKET

There also two additional projects outside of Rukwa, in central-north Tanzania, with concentrations ranging between 4.3% – 10.5% helium. Helium One is expected to start drilling at its Rukwa Basin Project this year. Independent experts have estimated there could be as much as 98 billion cubic feet (Bcf) of helium (about 15 years’ worth of the world’s helium use) at the Rukwa Basin Project. Noble Helium As mentioned earlier in this article, the other active player in Tanzania is Noble Helium, securing first rights to 6,115 square kilometres of mineral exploration rights in the country through its 100%-owned Tanzanian subsidiary and born out of the very need for helium supply. The Brisbane-based company was formed in early 2017 – following a study into the global helium market – as an upstream helium company focused on identifying and developing geological sources of helium as the primary product, and on selling that product to the downstream global gases industry. As such, it’s described as the first pure-play helium exploration and production company. Tanzania’s geology is near-ideal for large volumes of standalone helium accumulation. The Archean to PaleoProterozoic Tanzanian craton is 2-3 billion years old, uranium-enriched, and rimmed with numerous multi-phase continental rift sedimentary basins up to 12km thick, Executive Chairman Walter Jennings explained to gasworld last year. “We are confident Tanzania is the most likely place on Earth to deliver this much-needed alternative, to ensure security of supply to the world for the rest of this century,” he said. “Tanzania has the potential to become a global player providing an alternative to the combination of Russia and Qatar controlling up to 80% of world demand by 2025. A 20% share of the global market is not out of the question for Tanzania.” Progress has been rapid since the company launched less than three years ago, and Noble Helium has recorded seeps of up to 18% at surface in its Tanzanian allocation – 20 times the concentration 38 | gasworld • January 2020

found in most helium-rich natural gas wells. CEO Justyn Wood enthused, “In the areas that we have in Tanzania, Noble Helium expects to find large volumes of helium without associated natural gas, allowing the helium to be produced as a primary resource on a globally significant scale.” Jennings told gasworld that the company’s development strategy in Tanzania is aimed at commercial reality by 2024, with Jennings noting that it expects to be at proof stage by fourth quarter (Q4) 2021, and represented the biggest investment opportunity in 100 years of helium exploration. The Noble Helium mission is not limited to Tanzania alone, however, the worldwide search is now on – and the company has been busy building its executive team to deliver against its ambitious goals. Other means of supply evolving Efforts have also been made to source helium from other means in recent years, which could change the way the market is comprised in future. Though not exactly new – on-stream in 2015 in fact – Air Products’ Doe Canyon facility in Colorado was the first-ever example of helium extraction from a stream of naturally occurring CO2. The facility was capable of 230 million standard cubic feet per year of bulk liquid helium extracted from a stream of CO2 otherwise utilised for enhanced oil recovery (EOR). Production has reportedly been below full capacity due a lack of feedgas, however the project shows what potential there could be in such ventures if all of the right factors are in play. Recovery and recycling should be mentioned here too, as a means of evolving ‘sourcing’ routes. During Helium Shortage 2.0 (2011 to 2013) efforts were particularly focused on helium recovery and purification and, though the market has been through periods of balance since then, the focus on more conservative and sustainable usage of this precious element has not been lost. The advantages of helium recycling and purification are endless, and it could be

argued, vital. Recovering and recycling helium helps to reduce the supply chain’s exposure to shortages, lessen the burden on production and alleviate possible supply disruptions. Fundamentally, helium recovery systems capture gas from waste helium streams, purify the helium, and then return the recovered gas product back into the process. Expect to see recovery and recycling efforts become even more of a mainstay in a more judicious global helium business in the years ahead. 1. Pricing has escalated At the BLM’s fifth public auction (FY2019), in accordance with the Helium Stewardship Act (HSA), on 31st August 2018, the BLM sold all 210 mmcf of its FY2019 crude helium available for sale at an average price of $280/Mcf. This price was driven by one storage contract holder, Air Products, that outbid all others in order to obtain all the crude helium available. The price took everyone by surprise, representing an increase of 135% over the prior year’s average auction price of $119/Mcf. The BLM set the allocated and non-allocated conservation sale price at $175/Mcf, an increase of 47% over the prior year. Was this a sign of the new normal in global helium pricing? Following the auction, helium price increases were driven to comparable new highs by global helium sources, the major helium suppliers, and to end-users as contracts allowed. No-one could say whether this is a sign of things to come, it’s a supply and demand business after all. On the one hand, once there is stability and perhaps even surplus in the market

“In the areas that we have in Tanzania, Noble Helium expects to find large volumes of helium without associated natural gas...” gasworld.com/specialfeatures

SPECIAL FEATURE

again, one could potentially expect pricing to ease a little; on the other hand, all of the investment required to bring all of the aforementioned projects (new and expanding) to fruition does not come cheap and would surely have an impact on pricing in the short-term. Supply disruptions, which seem increasingly geopolitical, could also have an impact. Take the Qatar embargo as an example. It took a significant logistical effort to re-route supply and adopt a ‘Plan B’ scenario, a further complication to maintaining stability. The additional transport and logistics has to have an adverse affect on cost of product. Supply disruptions have affected the major industrial gas producers to varying degrees, all dependent on where they source their helium, and that has an inevitable knock-on effect on pricing. Supply flowing from the US into Europe has increased and vice-versa, as suppliers manage complex logistical challenges. Ultimately, supply reliability comes at a price and never more so than today. One might also question whether helium is becoming more of an investor’s business? It’s no surprise that during times of shortage and vastly escalating pricing, we’ve seen the emergence of a number of new players in this business, very much to the benefit of the market but no doubt also attracted by the fundamentals of supply and demand. Will this continue? Quite possibly, if the increasingly lucrative nature of the industry is sustained. 1. Applications are shifting Finally, the applications landscape is shifting, something that is perhaps long overdue. It is believed that as much as 10% of global helium demand was permanently lost during the 2011–2013 shortage, through substitution, increased recycling and more efficient use of helium – demand that was slow to return. The MRI (magnetic resonance imaging) business as still by far the biggest application for helium overall; between 25-30% of global demand alone comes from the manufacture and operation of MRI scanners, which use liquid helium

to cool the superconducting magnets that generate high resolution images of the human body. But expected demand in the future from the space industry, airships and super-computing could change this traditional view of the market. One of the most renowned and discussed future applications of helium is in the airships industry. The commercial development of airships could represent a significant demand driver for the global helium business, but had failed to be realised. Developments in commercial airships have accelerated in the US, UK and Russia in recent years, exploring the role of helium as a lifting gas for either hybrid airships or variable buoyancy airships. At least three notable organisations had been known to be working on variable lift airships, those being Aeroscraft (US), RosAeroSystems (Russia) and Varialift (UK), while others like HAV (UK) and Lockheed Martin (US) have been working on hybrid airships. Another source of growing talk in helium circles is in the realm of supercomputers. Computing had made various levels of helium headlines in the last half-decade, as the use of helium in next generation hard disk drives (HDDs) has been seen as an interesting development. With the increasing demand for cloud storage and online data back-ups, there is a growing drive for large storage volumes to match. Meeting the needs of this trend is the introduction of the 10 terabyte HDD, considered a significant milestone in data storage, enabled by the use of helium gas. But arguably bigger potential awaits in the field of quantum computing, even if this sector is still very much in its infancy at present. Helium is well known for its incredible super-cooling properties, and it is this unique characteristic that could see helium blaze a trail in super-computing in the long-term. Though very much still in the earliest stages of development, it’s thought that quantum computers – theoretically capable of solving certain problems much quicker than any classical computers that use even the best currently known algorithms today – will ultimately replace conventional machines in the

future. Indeed, it’s widely understood that many national governments and military agencies are funding quantum computing research in efforts to develop systems for civilian, business, trade, environmental and national security purposes. Staying with electronics, and renewed demand growth in the electronics business has been significant, almost exponential in fact, in recent years. 3D structures and new materials in the semiconductor business will continue to drive technology advancement and helium demand intensity to match. Continued helium demand exists in the space sector too, where helium is used throughout as a cryogenic agent for cooling various materials and in precision welding applications, as well as lab use. Whereas years ago only the US and Russia had traditionally used the element for these purposes, today there are numerous countries which have developed their own space programmes, including India, China and the EU – all of which has driven demand growth for helium. There is also a budding commercial space sector in progress, which could create an even bigger market for space odysseys in the future. This new ‘space race’ of today could have a significant impact on helium demand; according to reports, the Bank of America has previously projected that the space industry will be worth $3 trillion over the next 30 years, compared to $350bn today. Change is good? Let’s come back to those definitions of change. When reading through any definition of change or the context of it, you’ll often find the adage or interpretation that ‘change is good’. Why so? Because change can spark new learnings, new experiences and broaden one’s horizons. It can unearth new opportunities and new ways of thinking. Perhaps this mindset is now part of the global helium business too. Maybe all of this change can be a good thing; if everything we knew is about to change, then it’s time to learn everything anew and discover fresh windows of opportunity. gw January 2020 • gasworld | 39

COLUMN | PHIL KORNBLUTH

Helium Shortage 3.0 Still the big story heading into 2020 By Phil Kornbluth

s we close out 2019 and look toward 2020, Helium Shortage 3.0 continues to be the primary focal point for gas companies who trade helium or end-users who rely on helium in their businesses. With Helium Shortage 3.0 dating back to February 2018, the helium supply deficit will be nearly two years old at the start of 2020. However, unlike the last two years, there is finally reason for optimism as we enter 2020. Kornbluth Helium Consulting believes that the odds favour an easing of the shortage during 2020, as long as two significant new sources that are expected to commence production come to fruition. The expansion of Air Products’ Arzew, Algeria source, could add at least 200 MMCF per year of new capacity as early as Q1 2020, while production from the 425 MMCF per year Qatar 3 Helium Plant is expected to commence sometime in Q3.

While it may take some time for these sources to reach their full capacity, they could easily combine to add up to 6-7% to world supply before the end of 2020. This new capacity would certainly contribute to a significantly reduced shortage by the end of 2020. In fact, if there is a material amount of ‘demand destruction’ caused by Helium Shortage 3.0, or an economic slowdown in some of the world’s major economies, a tight balance between supply and demand could be restored by the end of 2020. The bottom line is that the worst of Helium Shortage 3.0 is probably behind us and there is reason for optimism that the helium supply situation will improve in 2020. Of course, the supply picture also has implications for the price of helium. Helium prices at the end-user level continue to be in an uptrend as we enter 2020, but it is safe to say that the sharpest increases in price have already been absorbed by the market. Prices for this cycle may peak before the end of 2020 as the market becomes more competitive in anticipation of significant new supply from Gazprom’s Amur Project, which is expected to enter the market in mid-2021. During 2020, industry participants will also be keeping a close eye on exploration in the southwestern US, Saskatchewan and Alberta in Canada, and Tanzania to see if the flurry of activity aimed at developing new production from non-hydrocarbon by-product sources begins to bear fruit. There are 20 or more companies currently engaged in helium exploration and it will be interesting to see if commitments are made to build multiple new helium plants in 2020. Certainly, 2020 will be a key year for

these companies, while the elevated prices resulting from Helium Shortage 3.0 remain in place and the appetite for new supply, especially from areas not subject to political risk, remains high. During 2020, the industry will also need to keep a watchful eye on political developments in the Middle East. Qatar accounts for approximately 30% of world helium supply and, while the world focuses its attention on the potential to disrupt the supply of oil if transportation through the Strait of Hormuz is impeded, closure of the Strait of Hormuz would also be a disaster for helium markets. Let’s hope that cooler heads prevail. Finally, activity should heat up in 2020 related to the planned sale of the US Bureau of Land Management’s (BLM) helium assets, including the BLM’s Crude Helium Pipeline and approximately 2.4 BCF of crude helium that is expected to remain in the BLM’s stockpile when the assets are sold by the 30th September 2021 deadline. The BLM is likely to issue its request for proposals to purchase these assets before the end of 2020 and interest is expected to be high. There is still a slim chance that the sale of the BLM’s helium assets could be delayed; but this would require existing legislation to be modified. In closing, we can expect 2020 to be another very interesting year in the helium world and, as usual, expect the unexpected to impact the market. gw ABOUT THE AUTHOR Phil Kornbluth is President of Kornbluth Helium Consulting LLC and a member of gasworld’s Editorial Advisory Board. gasworld.com/columnists

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January 2020 • gasworld | 41

SPECIAL FEATURE | BLM CLOSURE

Privatising the US Federal Helium Programme By Samuel R.M. Burton, Field Manager at US Bureau of Land Management

his article complements previous articles and describes the Bureau of Land Management’s (BLM) declining role in providing helium to worldwide markets. It provides further transparency to the helium industry and the public at large on the plans to offer for sale the Federal Helium Programme real property, and all US interests in the Federal helium reserve located near Amarillo, Texas. This sales action is driven by the Helium Stewardship Act of 2013 (HSA) and is the final step to fully privatising the helium production facilities constructed under the authority of the Helium Act Amendments of 1960, creating the helium conservation programme. By 1st October 2021, the Federal helium operations will cease and the reserve will no longer be managed by the US government. This article updates plans and timelines for sale and transfer of functions to a private entity. The intent of the HSA is to allow for a smooth transition to private helium operations with minimal disruption of the helium industry. The BLM, an agency of the US Department of the Interior, is a major supplier of crude helium to refiners in the US, which markets pure helium around the world. Managing the nation’s Federal Reserve was a quiet endeavour until shortages in 2006 made news around the world. Shortages happened again in June 2017 with interruptions of the Middle East helium supply lines. The global helium industry is sensitive to disruption of supply lines and shipping delays of bulk liquid helium, and the helium shortage is still ongoing. In past years, the BLM was able to help meet fluctuations in demand for helium in the private sector. However, current 42 | gasworld • January 2020

(2019) production from the reserve has declined to only 27.2% of US supply and 15.8% of the world’s supply of helium (see graphic, right). The BLM produces about 840 million cubic feet per year (about 2.3 million per day). Additional helium sources are needed to meet the helium demand. Potential new sources in Russia, and the Middle East are expected to come online about the same time as the BLM sells off the reserve. The transition of the Federal Helium System (FHS) to private ownership in 2021 will include the sale of the government injected helium (estimated 2.4 Bcf then remaining volume of injected helium) and estimated 50-59 Bcf of native natural gas; a 425-mile helium pipeline distribution system (crossing the states of Texas, Oklahoma, and Kansas), and ancillary well bores and well maintenance equipment; and surface use leases (with land owners), pipeline rights of way, and gas leases that transfer mineral ownership rights to the Bush Dome storage field. As a footnote here, a privately-owned crude helium extraction unit (CHEU) is currently onsite under contract with the government to provide enrichment services and is not part of the government sales process. The Federal storage volumes initiated phase ‘C’ of the HSA, which is the dedicated sale of helium to Federal agencies. The government Fiscal Year (FY) begins on 1st October and auction/ sales are held before the gas volumes are delivered. To prevent deferred revenue, all volumes are transferred to the buyer’s storage contracts by 30th September of the year in which the auction/sale occurred. The FY 2018 auction and sale for FY 2019

delivery was held on 31st August 2018 and triggered the 3 Bcf change to phase ‘C’. The FY 2018 auctions/sales were the last crude helium sales to private companies. Closure activities The Federal Helium Programme history is well documented in the literature so this article will focus on updating the closure activities underway through 2021. Photos and tables shown in this article illustrate the current efforts to provide value and effect the efficient transfer of ownership according to the Helium Stewardship Act of 2013. An internet accessible ‘data room’ will be set up late 2019 with newly available information and updated reservoir production data sets that were used by BLM’s contractor (Edge) to model the reservoir. The database and commercially available software allows future owners to perform their own reservoir modelling. The most recent calculations show the decline in helium production from the storage reservoir as we close in on the 30th September 2021 closure date. This decline curve was projected out to 2024-2025 as the most optimistic projection for helium production with current compression and equipment being used. The data shows projected production using the BLM’s booster compressor; however, modifications to the ‘K-100’ process compressor have allowed production to continue past original pressure limitation targets. The BLM started commissioning operations on the BLM booster compressor on 2nd October 2019. With this booster in full operation (expected 15th November) additional storage customer helium will be delivered gasworld.com/specialfeatures

SPECIAL FEATURE

through September 2021. To maintain production rates, further equipment modifications may be needed past 2021. The BLM and GSA (General Services Administration) are currently discussing and planning the disposal/sale process for real property and how to efficiently provide for a smooth transition from Federal to private ownership of the Federal Helium System that is also consistent with the HSA and meets the purposes of the Act. The Cliffside Refiners Limited Partnership, or CRLP, is a group of three private refiners (Air Products, Praxair, and Messer) and an energy company (Kinder Morgan) that own the CHEU at the Cliffside Facility. The BLM has negotiated and entered into a Federal Acquisition Regulations (FAR) contract to govern administration of production through 2021. BLM maintaining value for the sale Federal helium assets to be sold include: • Mineral rights to Bush Dome Reservoir • Cliffside Plant Facility, Gas Wells, and Pipelines • Central Compression • Natural Gas Chiller Skid & NGL Storage • Crude Helium Pipeline, Meters, and Cathodic Protection • Satanta Maintenance Station Does not include CRLP compression and enrichment equipment In order to maximise value for the pending sale the following assumptions were made: 1. The sale of all real property is accomplished during the years after the BLM enters phase ‘C’ 2. The FTC, DOJ, and other regulatory bodies approve the sale 3. The GSA is able to finish all aspects of the closure actions required. Some BLM projects are being completed to ensure the helium will be delivered through the remaining life of the programme. Limits to plant capacity and company demand will determine how

Production Capacity Production capacity in FY2019 and beyond is dependent on field pressure Helium Production (MMcf) 1200

960

1000

757

800

616

600 400 200 0 2018 Helium Production with Centralized Compression Fiscal Year MMcf 2019 960 2020 757 2021 616

2019

2020

2021

As of October 1, 2018, after the August 2018 Auction & Sale: • Private storage balance is 3.1 Bcf. • Government reserve balance reached 3.0 Bcf triggering the start of Phase C of the Helium Stewardship Act of 2013. Total Crude Helium Delivery Capability through 2021 with centralized compression

much helium remains undelivered by 30th September 2021. Crude helium booster compressor building This major improvement was installed by the BLM in December 2015. Initially started and tested for acceptance in January 2016, the booster compressor has stood ready for integration. The purpose of this compressor is to boost the field pressure from the gas wells to the pressure needed to operate the CHEU. Changes were made to the K-100 in 2016 allowing the field to continue to supply feedgas to the CHEU. Multiple meetings with the CRLP were held to fully integrate the booster compressor. Throughout 2016 and into 2017 the decision was jointly made to hold off on fully integrating the compressor. With the changing helium market, the joint decision was made mid-2017 to move forward on fully integrating the booster by March 2018. Additional welding repairs and stringent safety requirements delayed the use of this booster compressor until September 2019. Once in full operation, this compressor is expected to add 500 million cubic feet per day additional production for the delivery of helium

2,570 MMcf

through the remainder of the program. Other projects that will maintain value are repairs to the plant feedgas line (and plant utility gas line), the above ground header project, replacement of meter building valves, adding real time remote monitoring capability to corrosion protection rectifiers along the crude pipeline, and routing natural gas excess to the flare (mitigating pressure shut ins of the plant). The helium programme after 2021 After 2021, there will still be Federal involvement in the helium managed on Federal leased lands. The Helium Resources Division will continue to collect royalties from helium sold off gas leases on Federal lands. Helium is a reserved mineral so any Federal leases producing helium gas generates helium royalties. All royalty revenues collected by the Helium Resources Division from Federal natural gas leases are deposited into the helium fund. The current Federal Helium Programme will operate for an additional two years before Federal production ceases and the Federal programme comes to a halt on 30th September 2021. If all goes as planned, on 1st October 2021 the production of crude helium will continue under private production. gw January 2020 • gasworld | 43

SPECIAL FEATURE | RENERGEN PROJECT UPDATE

Helium in South Africa A Renergen project update By Joanna Sampson

merging helium and LNG producer Renergen broke ground at its flagship gas project in South Africa at the end of November (2019). The Virginia Gas Project comprises exploration and production rights of 187,000 hectares of gas fields acoss Welkom, Virginia and Theunissen, in the Free State, South Africa. Once completed in 2021, the plant is expected to produce around 2,700 gigajoules of LNG and 350kg of liquid helium per day. This will be increased 44 | gasworld • January 2020

to around 1.2 tonnes and five tonnes of helium per day in phase two. The source of the Virginia Gas Project’s natural gas is primarily microbial. It originates from deep within the Witwatersrand Supergroup, via groundwater circulating through large faults and contacting bacteria deep within the earth’s crust. This means the methane is a biogenic and continuing renewable resource, which is significant. gasworld sat down with Renergen CEO Stefano Marani to learn more

about the project, how significant it will be for helium and what the next step forward for the project will be. gasworld (GW): We thought we’d start by asking if you could tell us a bit about the Virginia Gas Project and how significant this will be for helium? Stefano Marani (SM): The project is quite a unique project in many respects. There’s overwhelming evidence that the methane gas is bacterial in origin and we’re seeing strong signs of regeneration. gasworld.com/specialfeatures

SPECIAL FEATURE

“Renergen’s demand base vastly exceeds our ability to supply in the short to medium term, meaning we have no plans to export LNG” That makes it unique in one respect because the life of the mine is going to be significantly longer than if you have a trap that you deplete. The second portion of the field that makes it quite unique is the concentrations of the helium that we see. The average concentration across the proven reserve is around 3%, but we’ve discovered a sandstone trap in the eastern portion of the field where we are recording helium concentrations of up to 11%. That’s contained in sandstone about 300m from the surface and has very good porosity and permeability. The next phase for us now is to explore that sandstone and determine exactly how much of the helium reserve that we have at this 11% concentration.

physical and regulatory impediments preventing more supply coming into the country. Renergen’s demand base vastly exceeds our ability to supply in the short to medium term, meaning we have no plans to export LNG.

The Virginia Gas Project is due to come on-stream in 2021. What will be the key milestones for the project in 2020? There are quite a few, but the more important ones include completion of the detailed designs of the plant and pipeline, breaking ground on construction of the pipeline, shipping of the modular plant and completion of the installation of the plant. Completion of the horizontal well is also an important event for the company, although not relevant to the commencement of operation in 2021 as the horizontal well is being drilled to determine the scale of the second helium plant.

Anything else you’d like to tell us about? The milestones that I have described in terms of what we have achieved and what we’re going to achieve in the forthcoming weeks, are really about the Phase I portion. We really see Phase I as a pilot project given the magnitude is not a particularly large amount of LNG, and it’s not a particularly large amount of helium. What I would urge people to pay attention to is the drilling, which since entering the sandstone deposit has had tremendous results and may well be the game changer. The sandstone is where we previously intersected helium at an 11% concentration, and as of 9th December (2019), the horizontal well began blowing significant gas volumes under reasonable pressure. We will need to complete the 1.2km of horizontal and flow test before we can measure the full size of the reservoir, but this puts us in a different league. gw

Linked to the helium exploration of course is your activity in LNG, what is the climate like in the LNG sector at the moment? LNG is a very localised commodity. Natural gas supply in South Africa remains hugely constrained with many

What kind of capacity are we talking about here, and will this be for the local market or wider regions? In terms of the proven base case of the Virginia Gas Project, it’s meaningful in terms of LNG for the South African market. The intention is to start to roll out LNG domestically for use in vehicles, particularly trucks and buses, as a substitute for diesel. With regards to helium, the first production will be particularly small it’s not going to be a very large project, probably about 25,000 mcf per annum. The second portion of the project, based on what we discover in the sandstone, has the potential to be particularly meaningful given the size of the sandstone body that we’ve discovered.

Phase I will exceed domestic consumption, which means there will be a remaining component which will then go to export. In that respect Phase I will certainly not solve the helium crisis, but it will help maybe one or two customers. Phase II is where the real export begins.

January 2020 • gasworld | 45

MARKET ANALYSIS | HELIUM MARKET REPORT

Helium supply reliability comes at a price The 2019 worldwide helium market report By Maura D. Garvey

elium supply has fluctuated from a slight surplus when the large Qatar 2 production came fully on-stream in 2014, to in-balance with the supply disruption of the Qatar blockage in June 2017, to tight supply beginning spring 2018. The ongoing tight supply caused by helium shortages peeked this summer during the planned plant outage at the largest US supplier, ExxonMobil. Following the unprecedented average crude helium price paid at the final BLM auction in August 2018 ($280/Mcf), and subsequent final allocated and nonallocated BLM sale price set by the BLM ($175/Mcf), helium price increases were driven to new highs by global helium sources, the major helium suppliers, and to end-users as contracts allowed. Worldwide helium supply in 2019 is about 6.2 billion cubic feet (Bcf), equalling demand, as shown in Figure 1. Despite several new smaller sources coming onstream in the US, the supply outages and shipping logistics challenges have kept delivery volumes flat over the past year. The worldwide helium market demand grew about 2% per year over the past five years. This demand could have been slightly higher if global supply had not experienced the plant outages and delays

6.2 Bcf

Worldwide helium supply in 2019 is about 6.2 billion cubic feet (Bcf), equaling demand

46 | gasworld • January 2020

“A much more favourable environment is coming into focus for 2021 and beyond” in plant start-ups. From this map, right, one can visualise the complexity of supplying helium, which is perishable under very high vacuum at very cold temperatures, from a very few specialised companies with a few remotely located production plants for delivery to hundreds of thousands of customers all over the world. We predict global growth at just over 2% per year for the next five years absorbing the new supplies coming onstream. Growth will be higher in Asia, 3-4%, and lower, 0.5-1% in the mature economies of the US, Europe, and Japan. The world’s helium demand-supply relationship is predicted to be tight until at least 2021 as the BLM production depletes, the reservoir and facilities are sold by 2021, and new planned sources come fully on-stream. Several smaller US sources started up early in 2019, including Tenawa, Haven Kansas (120 million cubic feet (mmcf)) and DB(K) Helium LLC, Arizona (130 mmcf). Most recently, Tacitus Corporation began production in Navajo County, Arizona and could produce 4 mmcf/month when fully on-stream. New announced sources include 400 mmcf at Qatar 3 (Qatargas – August

2020); an expansion of up to 300 mmcf at the Arzew, Algerian plant (2020); 20 mmcf at Renergen, South Africa (2020); 2.1 Bcf at the Siberian Amur project by Gazprom (first train on 2021, second train reaching capacity in 2023, and the third train reaching capacity in 2026); 270 mmcf in Irkutsk Russia (2023), and 250 mmcf at Saudi Aramco (2023). The potential for Qatar 4 (Qatar Petroleum), when plans are confirmed, could bring 1 Bcf of additional supply after 2025. Intelligas Consulting, on behalf of gasworld, spoke with the helium experts and managers at major industrial gas companies and distributorships throughout the past year to get the insider’s view of this critical market and the changes underway within it. Those views and opinions are reflected here. Current worldwide helium supply As noted earlier, worldwide helium supply for 2019 is estimated at about 6.2 Bcf, in balance with demand since the June 2017 disruption in supply by the Qatar blockade. Helium production has been increasingly tight since that time because of a multitude of temporary global helium supply disruptions. Those disruptions include planned and unplanned maintenance to the major helium or co-product plants, delays in helium plant start-ups, continued decline in BLM helium production, and lack of crude feedstock to helium plants caused by reduced demand for LNG from Algeria. These supply disruptions have affected the major industrial gas producers gasworld.com/specialfeatures

MARKET MARKETANALYSIS ANALYSIS

Worldwide Supply in Balance with Demand=6.2 Bcf © Intelligas Consulting | Figure 1

EUROPE 1.2

RUSSIA ExxonMobil Doe Canyon CCI Tenawa DBK Helium Hugoton Primary

Secondary & Backup

Poland

Orenburg

Gazprom Irkutsk Amur

ASIA 2.1 US

Qatar Temporary

Arzew

Primary

Skikda Saudi ALGERIA Aramco

AMERICAS 2.7 US 2.0

Darwin

Renergen

AUSTRALIA

Current Supply

Afr/MidE/India 0.2

Planned

Regional market demand volumes in boxes assets (e.g., US Otis, KS plant, BLM to varying degrees,transfills, all dependent on where helium recovery, ExxonMobil they source their helium. There has Linde North America contract, been acustomers, measurablecontainers increase ofand supply flowing distribution from the US into Europe while at the same assets, and former Linde management time supply from Europe into the US has team employees). The result of the increased, reflecting the complexity ofthe merger and divestitures maintained various helium suppliers managing the number of major industrial gas helium logistics sources to end-use suppliersofattheir five,supply namely Air Liquide, Air customers under contract. Products, Messer/CVC, Linde plc, and Consensus among experts is that helium TNSC. TNSC’s global helium business will remain tight going forward until at is managed through their US subsidiary, least 2021. Phil Kornbluth, President, Matheson. Kornbluth Consulting, noted IntelligasHelium Consulting, on behalf ofthat “a much more favourable environment gasworld (US Edition), spoke with is coming intoexperts focus forand 2021 and beyond. the helium managers at ” Kornbluth noted that this assessment major industrial gas companies and is dependent on newthroughout sources coming on as distributorships the past year advertised. Any new unplanned outages, to get the insider’s view of this critical coincidental planned outages, or delays market and the changes underway in new source start-ups could ultimately within it. Those views and opinions are extend theinperiod of tight supply. reflected this article.

Current worldwide helium supply Current regional helium demand As notedworldwide earlier, worldwide In the Americas (US, Canada, supply for 2019 is estimated atMexico, about 6.2 and America), US is the second Bcf, Latin in balance withthe demand since the largest market for helium worldwide, June 2017 disruption in supply by the having been surpassed by production Asia in 2017,has Qatar blockade. Helium consuming about 32% of the been increasingly tight sincetotal thatvolume, time or about 2.0 Bcf/yr. because of a multitude of temporary Continued helium supply and global heliumtight supply disruptions. rising prices driven by the ongoing Those disruptions include planned helium supply disruptions havetocaused and unplanned maintenance the helium demand to remain relatively major helium or co-product plants,flat. End-users continue to seek cost-effective delays in helium plant start-ups, solutions to the situation by employing continued decline in BLM helium conservation, substitution, recovery, and production, and lack of crude feedstock recycle. The increased supply of helium to helium plants caused by reduced from Qatar coming online allowed demand for2LNG from Algeria. demand to grow as the US economy These supply disruptions have expanded. The additional supply affected the major industrial gasallowed growth in balloons, electronics, leak producers to varying degrees, all detection, airbags, and welding. The space dependent on where they source their program in the US, including NASA and helium. There has been a measurable

increase of supply flowing from the Space X, Europe saw increased helium demand US into while at the same time driven by a record number of launches. supply from Europe into the US has Going forward, the USthe demand growthof increased, reflecting complexity is estimated at 0.5% per year as supplies various helium suppliers managing the allow. Other Americas estimated 12% logistics of their supplyissources to at endof worldwide helium demand with growth use customers under contract. similar to the US. Helium supply to Other Consensus among experts is that Americas is from the US. helium will remain tight going forward Asiaatrepresents largest market for until least 2021.the Phil Kornbluth, helium with 33% of worldwide President, Kornbluth Helium demand; just surpassing the US witharticle 2019 helium Consulting, noted in his in this demand estimated at 2.1 Bcf/yr. Where issue of gasworld (page 28), that “a much the USfavorable is a mature economy, many regions more environment is coming in Asia are undergoing infrastructure into focus for 2021 and beyond.” development. China that is thethis largest market Kornbluth noted assessment in Asia (42%), followed by South Korea is dependent on new sources coming on (25%), Japan (17%), and Taiwan (16%). as advertised. South Korea helium demand surpassed Any new unplanned outages, Japan in 2016 primarily due to in coincidental planned outages,growth or delays electronics. Asian demand growth going in new source startups could extend the forward estimated to be 3 to 4% with period ofis tight supply. January 2020 • gasworld November 2019 • gasworld US Edition | | 47 51

MARKET ANALYSIS | HELIUM MARKET REPORT

the exception of Japan. Japan is a more mature market where demand growth has been flat since 2015 and is estimated to remain flat over the next few years. China helium demand growth has slowed from previous estimates because sufficient supply to support new growth is not available due to plant outages, declining BLM production, the smaller size of new US sources, and the delay in plant start-ups. Demand in Asia is being driven by the space programme, significant investments in MRI, and expanded electronics manufacturing and fibre optics markets. Helium is used in electronics applications such as flat panel displays and computer chips, as well as optical fibre. The US and Qatar are the primary suppliers of helium for Asia, each shipping about 1 Bcf per year to the region, with Australia supplying about 100 mmcf per year. The cost to ship from the US is lower due to favourable distribution economics from western US sourcing and fast container shipping from Long Beach, California. USA trade helium export data reflect increasing supply from Qatar and declining supply from the US. Europe comprises about 19%, or 1.2 Bcf, of worldwide helium demand.

3% 32% 30%

4% 19%

12%

Afr/MidE/India

Can/Mex/SoAm

NoPacRim

Europe

SoPacRim

48 | gasworld • January 2020

“... the US is the second largest market for helium worldwide, having been surpassed by Asia in 2017” Demand growth is expected to be 0.5 to 1% per year, similar to the US, for the next few years due to struggling economic conditions in the region. Helium applications are as saturated in Europe as they are in the US. Currently, Algeria and Qatar are the primary suppliers to Europe, with back-up imports from the US as is witnessed according the European Commission (EC) import statistics. Rest of the World (ROW) – Africa/ Middle East/India together represent 4% of the global market. These regions traditionally have contributed to strong demand growth from infrastructure development and is expected to grow moderately the next few years at over 2% per year. Supply to ROW is primarily from Qatar and Algeria due to the proximity of those sources. Future worldwide supply and demand Future projections are based on Intelligas modelling of supply and demand data and how helium markets are expected to recover. Our assessment of the 2019 worldwide market for helium sets demand as flat from 2018, at about 6.2 Bcf. We can expect worldwide growth around 2% over the next five years, given no major supply chain disruptions, keeping demand and supply in balance but tight until at least 2021/2. The significant new planned sources such as Qatar 3 (450 mmcf/yr), the Russian Amur far east project (2.1 Bcf/ year once fully loaded), and the smaller Irkutsk Oil Company, Russia (270 mmcf/ year), and Saudi Aramco (250 mmcf/year) projects should offset the BLM decline and put supply in surplus. However, the helium business could take longer to come

out of tight supply if the new sources are not brought on as scheduled. Experience has shown us that major projects often have technical issues and do not typically come on-stream when planned. The industry should plan for the risk that tightness could extend beyond 2021. In the US, no new large projects that have been announced to develop helium. Several smaller projects to recover helium as the primary product from small gas fields in North America, with higher concentrations of helium, continue to be developed by companies like IACX, The Weil Group, Canadian Helium, and Tacitus Corporation. These non-conventional, or non-hydrocarbon helium sourcing ventures, are the older investors among the many newcomers still exploring and seeking investors to produce helium such as North American Helium, Thor Resources, Royal Helium, and Big Star Energy. Gazprom’s Amur project expects to begin production of helium 2021 and ramp up to production of about 2.1 Bcf. This is a complex project due to the remote location and harsh environment making logistics difficult. The infrastructure to deliver helium is being developed to address the remote and harsh environment. Gazprom plans to establish a Helium Hub outside Vladivostok to manage logistics and handle ISO containers. Given the economic and environmental challenges posed by the project, it would not be unusual to expect some delays. Qatar Petroleum plans to increase the capacity of Qatar’s LNG expansion project by adding a fourth liquefaction train. The new project could produce up to 1 Bcf of pure helium. The Linde and Renergen project to recover helium (20 mmcf) from natural gas in South Africa should be on-stream in 2020. The Helium One project is still in planning stages to develop large-scale helium production from gas in Tanzania. US supply While over 40% of the helium produced gasworld.com/specialfeatures

MARKET ANALYSIS

purity helium. IACX is tapped into the in the US today still comes from the BLM BLM pipeline at Rush County, Kansas system and crude field, the BLM system is in decline and eventually its storage supply and is capable of tolling for BLM storage contract holders. will be depleted. Development of new US sources to offset the decline in domestic US government’s critical role helium supply is critical to avoiding the The Federal government has played a US becoming a net importer in the future. critical role in the stockpiling, production, Once capable of producing 2.1 Bcf/ and refining of helium for the past year, BLM production in CY2019 is century. The BLM is responsible for estimated at 800 mmcf, down 225 mmcf managing the US Federal Helium Reserve from 2018, and is estimated to continue to and for selling crude helium to privatedecline at a slower rate into CY2020 as the sector helium refiners which market BLM plans to tie in central compression and sell helium to both government and sometime in November 2019. The decline private sector users. in crude deliveries is due to As of 1st October 2019, the difficulties extracting crude from declining volumes and total volume of helium in pressures in the reservoir. the reservoir was around Helium production US trade helium import 5.2 Bcf. Of this, 54% (2.81 from the Amur project data and EC helium export Bcf) is government-owned will be about 2.1 Bcf statistics reflect an increased and 46% (2.43 Bcf) is flow of helium to and from owned privately. The BLM’s Europe into the US reflecting fifth public auction (FY2019), the difficulty of managing the in accordance with the Helium helium supply chain for major producers Stewardship Act (HSA) took place on 31st with mixed portfolios of sourced helium. August 2018. At that time the BLM sold The BLM will progressively decline all 210 mmcf of FY2019 crude helium though September 2021 when the facility available for sale at an average price of has been directed by HSA to be sold. $280/Mcf. This price was driven by one Outside of the Hugoton in the US, the storage contract holder, Air Products, that largest helium production source in the outbid all others in order to obtain all the US is the ExxonMobil plant in LaBarge, crude helium available, presumably to Wyoming, which produced 1.35 Bcf in increase its allocation of BLM production. 2018 and is expected to produce about This price represented an increase of 1.20 Bcf in 2019 due to the six-week 135% over last year’s average auction price outage during July and August this past of $119/Mcf. The BLM set the allocated summer. The other smaller sources of and non-allocated conservation sale price helium include the Air Products’ Doe at $175/Mcf, an increase of around 47% Canyon, Colorado helium plant that from last year. can produce up to 230 mmcf/year, given sufficient feedstock, and the Castleton Outlook Commodities International (CCI) plant in Intelligas estimates future worldwide Moab, UT capable of producing 120 mmcf helium demand growth overall will per year. be about 2% over the next five years, In addition, IACX Energy operates a primarily due to the global economic proprietary fleet of helium plants that recovery and intensity of helium usage in extract gaseous helium at or near natural Asia, barring any significant supply chain gas wellheads where commercial helium disruptions of course. is present. This currently includes 5-6 gas Future demand for helium will grow fields producing about 125 mmcf/year of the fastest in Asia, especially China gaseous helium primarily for the balloon where MRI infrastructure development, industry. The product is primarily lower electronics, lifting, and space programme

2.1

2020

Recent price increases have continued to escalate into 2020 contracts, the magnitude of which continues to be observed usage will drive growth. Future demand growth in the mature economies of North America, Europe, and Japan will be slower – flat to 1% per year. Future economic conditions in all geographies will affect overall growth in helium demand. The world’s helium demand-supply relationship is expected to be tight until 2021/2 as the BLM depletes the private inventory and sells the facilities by 2021, and new large sources like Qatar 3, Russia Amur, Irkutsk, and Saudi Aramco projects come on-stream as planned. Other important geopolitical supply chain risks remain, including the Qatar embargo, USChinese tariffs, and US-Russia tensions. The magnitude of helium price increases following the BLM auction in the face of tight supply continues to be watched by the industry, especially by the large end-users who cannot always easily pass on these increases to customers. These prices have continued to escalate into 2020 contracts, increasing the burden and concern for potential demand destruction. The world of helium is constantly changing, making it a challenging market for the industrial gas industry to manage because of uncertainties relating to demand destruction from tight supply, reliability of helium sources, and the timing and reliability of supply sources beyond 2019. gw ABOUT THE AUTHOR Maura D. Garvey is a Principal and Director of Market Research for Intelligas Consulting (a J. R. Campbell & Associates, Inc. company), an international consultancy specializing in strategic analysis and forecasting in the industrial gas industry. She can be reached at mdgarvey@verizon.net. January 2020 • gasworld | 49

INTERVIEW | GLOBAL GASES GROUP

10 minutes with...

Swapnil Vichare Group General Manager – Operations, Global Gases Group

Thanks for taking 10 minutes out with gasworld, what are we interrupting in your schedule today? Well, we are here at the gasworld MENA Industrial Gas Conference today in Dubai, UAE, where I have been presenting Offshore Services! It is a very niche segment for Global Gases Group with expertise to service the offshore segment and contribute to the success of their critical projects. Delivery, On time – Every Time with the highest quality that our customers rightfully demand within the stringent norms of IMCA and other offshore standards such as DNV is key to our success. So while we speak, I am working on an SOS call from a customer in offshore requesting additional supply of Heliox, and our defence partners demanding for an urgent repair and refilling of their assets. That is the dynamics of our business we operate and are delighted to deliver. So tell us a bit more about the Global Gases’ portfolio of gases… Global Gases Group is a very young company, founded in 2002, on very strong beliefs of safety and quality standards led by our proud team. The froup operates its world-class facilities in over eight countries, spanning four continents. Our customer-focused approach has taken us to the regions of extreme conditions where our customers operate and want us to partner with them. Our products such as diving gases and chemicals, construction gases and purging services for offshore industry form the majority of our portfolio, along with MRI 50 | gasworld • January 2020

helium being served to over 30 countries worldwide. Defence and process applications are the third-largest helium application and services for our group. Our team regularly updates and upgrades the system and standards, and delivers the products safely and with the respect the customer deserves. Helium is of course our theme for this month’s edition, tell us more about Global Gases’ activities in the global helium business… We live and breathe helium. Global Gases Group is the single largest independent company operating in helium. Heliox (helium-oxygen mixture) serves the deep sea saturation diving application. The leak detection mixtures continue to be critical for the safe operations of the offshore and onshore pipelines and the petrochemical complexes. MRI helium supplied to hospitals is key to the operations of this critical equipment across 30 countries that we serve from our facilities in the Middle East, Asia, Australia, Europe and Africa. We understand the need of our customers and work diligently to ensure that we meet and exceed the expectations. What do you expect to see from the helium business in 2020? The current helium shortage will continue through the most of the 2020, until the new sources will come online. So we have to strive together with our suppliers and support our customers the best way we can. And what is Global Gases doing to overcome these challenges in the helium supply chain? We have built multiple sources and

“We are the perfect size company to grow under the present business environment...” secured product for these shortage periods. Partnership is the key to running any successful business in these competitive environments, where the raw material is itself being challenged for its shortfall worldwide. Where are the opportunities for a company like Global Gases? Immense opportunities indeed. We are the perfect size company to grow under the present business environment. We have a mix and balance of the business segments and are not dependent on a single industry for our business growth. That gives us the opportunity to balance the dynamics of each segment and maintain the growth even if one industry is facing its challenges. If you could leave us with one message about the future for Global Gases in 2020 and beyond, what would it be? The Global Gases Group is committed to the future with the strongest devotion to our environment. We will remain dedicated to grow in this niche business globally. We will not compromise in safety and will supply the best quality product via the highest technology to meet our customers challenging needs. We will continuously invest in the best people from the industry as they are our biggest asset. We look forward to Delivering Excellence in 2020 and beyond. gw gasworld.com/interviews

years

SPECIAL FEATURE | FUTURE-PROOFING INDUSTRIAL GASES

Future-proofing industrial gases Five things to watch out for in 2020 By Rob Cockerill

ne of the big topics of the last year for the global industrial gases business has been the future-proofing of the industry, as it simultaneously comes up against and leverages the opportunities of various external trends. With the dawn of a new year and a new 12 months in prospect, here we look at five things to watch out for in 2020.

goods like gas cylinders, bulk tanks, tube trailers and valves as manufacturers as they deal with the higher cost of raw materials. Manufacturers of steel gas tanks, tube trailers, cylinders and equipment have been watching the situation closely and with no sign of any easing in geopolitical tensions and, therefore, trade tariffs, we can expect this concern to rumble on into 2020.

3. Digitisation 1. Economic climate The increasing digitisation of the industrial gases business, from Let’s get the obvious one out of the way immediately – those fully automated cylinder filling plants to asset tracking and macroeconomic headwinds that we so often hear about. telemonitoring and greater collection and analysis of data, has The picture moving into 2020 is an interesting, if not complex, been one of the stories of recent years for the industry. one indeed. We are all no doubt aware of at least one or more And yet, it is fair to say that the industry has still only geopolitical factors creating hesitancy in the global markets, experienced the first baby steps of digitisation, with much whether it is escalating tensions in the Middle East region, more still to come – beginning in earnest in 2020. We will see the ongoing machinations of ‘Brexit’ in Europe or the delicate more progression in e-commerce platforms, more and better balancing act of relations between the US and China. The list of connected assets, more discussion around augmented reality possible headwinds continues to grow. (VR) technologies in the industry and artificial intelligence (AI). These headwinds have noticeably crept back into recent gasworld Advisory Board Member Ravin Mirchandani financial disclosures, largely as a precautionary note and (Mack Valves) agreed in a recent column for the certainly inescapably, but it’s worth noting that the 2019/20 gasworld Yearbook, in which he wrote, “In economic picture will be something to keep tabs on 2020 AI will start to accumulate the data needed for in the year ahead. IMO 2020 dictates digitisation to truly start making a difference.” marine fuels have sulfur Digitisation will mean disconnected assets such 2. Trade tariffs content of no more as valves, meters, tanks will also start to become At the heart of economic uncertainty in the last year than 0.50% additional data points. Engines driving customer or more has been the implementation of trade tariffs portals will slowly learn how to prognose demand, and between nations, a situation that has steadily accelerated. not only help customers order easier with one click, but will Fears appeared to linger in the US for much of last year also start to allow manufacturing locations to forecast demand that US tariffs on steel and aluminium imports would contribute well in advance, optimising stock levels and costs.” to an economic downturn of some degree. Whilst that has “We will start to see real efficiencies emerge right across the perhaps been avoided, there is also a feeling that the full effects of value chain,” he added. “2020 will be the start of the era of ‘AI as a these trade tariffs are yet to be seen. service’ to customers.” The US tariffs against China were authorised under Section This will not only be an important trend to watch out for 301 of the Trade Act of 1974 and foreign steel had been subject and partake in as 2020 unfolds, it could also help to offset the to 25% tariffs in the US since March, leading to higher profits negative effects of any aforementioned economic setbacks that for domestic steel producing companies who in turn raised their could occur in the future. Against a backdrop of growing cost prices by as much, or more, and thereby drove up costs for US and margin pressures for the industry, there are the productivity manufacturers. End-users have also felt the effect of trade wars levers that digitisation brings to be leveraged. as a result, with higher tariffs on imports creating price rises for

0.5%

52 | gasworld • January 2020

gasworld.com/specialfeatures

SPECIAL FEATURE

This was a point made by Linde plc Executive Board Member Sanjiv Lamba, during his keynote talk at gasworld’s FutureProofing Industrial Gases Summit in Singapore last June (2019). Describing how technology is forcing the pace of change in the gases industry, he commented, “What is the currency in our world today? The one currency that is certain the world over today is uncertainty. That uncertainty has a lot of implications, and for our industry too.” “The one immediate reaction to that from most industries, including our customers, is that investment decisions get put on hold. That is critical for us, because we are seeing investment cycles put on hold… and I know this uncertainty is impacting all of our decisions going forward.” “Technology is forcing the pace of change,” he said. “We are of course advanced, but we can often be followers rather than leading, and we are being forced by technology to move forward and embrace digitalisation.” “It’s about the importance of the customer experience. It’s about product lifecycles being shorter and shorter. It’s about intelligent supply chains and a move to mass customisation. It’s about a sharing economy shaping consumption. All of this currently is part of what we do, every day, but we recognise as an industry we have a long way to go and as market leaders we have a responsibility to keep moving forward and harness the change that is all around us.” Harnessing this change could be a key theme of 2020. 4. Clean energies The realm of clean energies needs no introduction for the industrial gases community, such will be its prominent role in the energy transition, but it will certainly be an increasingly hot topic for the industry in the year ahead. LNG will continue to grow in significance from this month onwards (January 2020), as IMO 2020 takes effect and the maritime industry implements a new sulfur cap on its fuels. Under the new global cap, in force from 1st January 2020 by the International Maritime Organisation (IMO), ships will have to use marine fuels with a sulfur content of no more than 0.50% against the current limit of 3.50%, in an effort to reduce the amount of sulfur oxide. The Emission Control Areas (ECAs) will remain at the 2015 standard of 0.1%S content. So 2020 will be an important year for LNG, with the fuel regarded as key to compliance with these new regulations. It will also be another pivotal year ahead for hydrogen. Last year was something of a breakout year for hydrogen energy, with recognition of its role in the energy transition only expanding and developments in technology, commercialisation and infrastructure build only accelerating. The industrial gas and equipment business has an invaluable role to play in the hydrogen energy sector, in fact one might even describe it as being fundamental to its successful development, such is the industry’s knowledge and expertise of the molecule, its storage, handling and application.

“...as market leaders we have a responsibility to keep moving forward and harness the change that is all around us” This is a point not lost on William J. Kroll, industry stalwart and gasworld Editorial Advisory Board member, who recently mused, “The use of hydrogen in all forms of vehicle fuelling is one of the bigger bright spots I’ve seen in my tenure with the industrial gases business industry.” With all of this in mind, hydrogen and the clean energies transition will undoubtedly be one of the hottest topics for the gases industry in the year(s) ahead. 5. Supply chains Finally, it’s worth noting that the same complex and constrained industrial gas supply chains will no doubt continue to be areas to keep a close watching brief on – with argon, helium and CO2 in particular focus. Concern is known to be building in the US where argon capacity is concerned, where a relatively tight balancing act is often the status quo as new nameplate capacity struggles to keep pace with demand growth. When it comes to carbon dioxide (CO2), clearly this is a high-profile supply chain challenge for the industry globally, but particularly so in regions such as Europe and the Americas. The great CO2 shortages of 2018 in Europe and Mexico really brought the fragilities of those supply chains into focus, while there is known to be a delicate balancing act in progress in the US market too. As for helium, this supply chain needs no introduction for gasworld readers. From shortage to surplus, shortage to balance and in more recent times shortage again, the global helium markets continue to fluctuate at the hands of planned and unplanned downtime for key feedgas plants and, increasingly, geopolitical factors as well. The general consensus is that we will see the first signs of Helium Shortage 3.0 coming to an end throughout 2020, with a real easing of the market in 2021 when expected new sources come into play for the market. But as always with helium, and as known by all those in the helium business, this is most definitely a market to keep a close track of. 2020 vision Ultimately, if 2018 was a year of delivery, and 2019 has been a year of transformation in the competitive structure of the industrial gases market, then one might expect 2020 to be a year of realisation for our industry – realisation of global economic positions, of the new structure of the industry, and of the many growth opportunities. The foundations are in place for an exciting 12 months in prospect, and all of the above watching briefs will provide challenges and opportunities in equal measure. gw January 2020 • gasworld | 53

COLUMN | WILLIAM J. KROLL

2020 vision During pivotal times of change for our industry, what you think you create, what you feel you attract, and what you imagine you become By William J. Kroll

s 2019 winds down it is time to reflect on what has gone on in the world of gases, as well as taking a look forward to the state of the industry tomorrow. In doing so, we need not look for new products since we in this industry basically sell ‘elements’ – with the exception of specialty gases and products like carbon dioxide, acetylene, propane, carbon monoxide, nitrogen fluoride and a few others. What drives our industry is new applications for those elements our industry produces. Saying this we have seen a number of new applications come on the scene , get traction and have the initial demand expand due to market growth, such as the semiconductor industry and IoT

54 | gasworld • January 2020

(Internet of Things) expansions. Add to this the increased demand for a new fuel to replace diesel, gasoline and CNG – I have to say, the use of hydrogen in all forms of vehicle fuelling is one of the bigger bright spots I’ve seen in my tenure with the industrial gases business. The very thought of using hydrogen to produce electricity for vehicle power becomes a game-changer and major application for the industrial users, but also for the very vehicles we all drive on a daily basis for family use. Keep your eyes peeled as the 2020 Olympics Games in Tokyo, Japan unfold. Japan has been very busy in making the vehicles used in all aspects of the Olympic Games to be fuelled by hydrogen. In years past, the Japanese knew that their vehicles would need to emit fewer hydrocarbons as well as carbon dioxide (CO2), given the density of people in the metropolitan cities of Japan. With this in mind, they made great strides and committed to LNG in taxies as well as buses and trucks; now this will change to hydrogen as they believe, as do others, that this is the answer globally. For many reasons, the world – it appears – will adopt hydrogen as a fuel of choice. I believe the most compelling reason this will happen is the ability for hydrogen usage to effectively reduce the CO2 footprint, which will in turn slow global warming. The use of hydrogen as fuel will trigger certainly an expanded market where volumes will grow greatly from the experimental applications

currently being used for transportation. This will expand to all types of vehicles and across numerous applications. As the global population grows, the desire to reduce the carbon footprint will lead to many new applications for gases to enable a more green society, including new and improved methodology for manufacturing the gases sold today, along with new applications for gases in the agricultural market to increase production while reducing cost and carbon footprint. This will also create more IOT needs to help decrease the cost of manufacture and distribution. In short, the efficiency of the total operations in our industry will demand multi-level application of real-time monitoring and control to meet the demand of the next two decades. Surely in my mind, those that do not embrace the changes required to make this growth happen will not exist in the same form as they have today. From my college days through to today, there were three words that summed up how to grow as a student, person or business: Explore, Create, Transform. As we look forward, our vision in these pivotal times of change will be dictated by what you think you create, what you feel you attract, and what you imagine you become. gw

ABOUT THE AUTHOR William J. Kroll is Chairman and CEO of Kroll Partners LLC and a member of gasworld’s Editorial Advisory Board. gasworld.com/specialfeatures

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25/10/2019 11:05

INTERVIEW | STÖHR ARMATUREN

10 minutes with...

Joachim Rödiger Joint-Managing Director and Co-Owner of STÖHR ARMATUREN

Thanks for taking 10 minutes out with gasworld. What have we interrupted in your schedule? It’s my pleasure! We’re currently very busy at STÖHR planning for both company growth and technological development. The first involves increasing internal capacities while maintaining high quality and safety standards; the second requires investing adequate time to work on technologies for future challenges. Tell us a about the company’s expertise in helium, our theme this month... Since the 1950s, STÖHR has specialised in engineering and manufacturing fittings for gases at cryogenic temperatures for four business segments: technical gases, space, maritime engineering, and science. The science industry in particular is dominated by the use of helium, and we’ve supplied this segment since the early 1970s, starting with cooling equipment for particle colliders. STÖHR is now listed as valve supplier to helium refineries in the Middle East, and the latest developments show the need for helium cooling of quantum computers at cryogenic temperatures – a new field of application for us. It’s not just temperatures of absolute zero that challenge materials. There are also stringent demands on tightness to the outside for vacuum-jacketing where leakage would destroy the vacuum. No helium user wants to lose this rare and expensive cryogenic gas, and we prevent this loss by applying bellow-sealing. Other challenges include minimum heat loads, which we meet with our special valve designs and use of new materials. 56 | gasworld • January 2020

What developments is STÖHR bringing to the market this year? We’ve grouped customer requests into four focus areas for further development: first, to increase the maximum pressure level on bellow-sealed valves above the current limit of 420 bar. The coming year will see valves at further increased pressure levels of some hundred bars higher – with bellow sealing and at reasonable valve sizes – compared to the products available on the market today. Secondly, we’re facing increasing demand for very large valve sizes in combination with high pressure levels and low leakage rates. We’re talking about heights of over two metres and weight of over one ton, so design, manufacture and testing are a big challenge! Thirdly, future colliders will require valves with even less heat intake. We’re evaluating new materials with a view to integrating them into our products in the future. Finally, Industry 4.0 impacts gas plant operations as well as logistics operations and factory automatisation. We are already seeing sensors, electronic data transmission, cloud-based data collection and reporting for preventive maintenance on some lower-tech products on the market. Our challenge is to apply these technologies for the highly challenging environment of our products earmarked by cryogenic temperatures, installation under vacuum condition or electronic data transfer at shielded conditions. Mere reporting of operation and status

“No helium user wants to lose this rare and expensive gas”

data will no longer be sufficient; analysis and recommendations for preventive maintenance are tomorrow’s demands. What’s the last stamp in your passport? My passport was stamped by Indian immigration when I visited the country to look at some of the innovative projects being developed by their space industry. My trip combined highly sophisticated discussions with knowledgeable customer representatives, with rich and interesting impressions of this colourful country. What do you see as the biggest challenges in the valves market today? It’s not what drives many others in the industry, such as ongoing price pressures due to internationalisation, or shortened lead times. Of course, we need to take these issues seriously, but for us, it’s the need to maintain our highest quality and safety standards simultaneously. Due to the ongoing increase of applications for liquid gases – not only helium but also oxygen and hydrogen – STÖHR products have a growing range of uses. It is essential for us to be visible and to become a project partner from the very beginning. If you could give one bit of advice to your younger self, what would it be? To join STÖHR many years earlier. Now my business partner and I are in such a rush to realise all our ideas! What’s next for STÖHR? Besides dealing with internal growth, we must continue to find creative developments that keep us true to our company motto: STÖHR – valves for the extremes. gw gasworld.com/interviews

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NEW! BUSINESS SERIES | TALENT MANAGEMENT

Talent management The future of work By Art Anderson

he topic ‘Future of Work’ has become a mainstream talking point over the last 5-7 years, principally driven by the rise of artificial intelligence (AI) and its potential impact on the workforce in the not too distant future. So, what should companies in the industrial gas space (and its ecosystem) be thinking about and planning for with regards to this topic? Let’s take a deeper dive and find out. Let’s start with a definition of the phrase the ‘Future of work’. Simplistically, it is taking a look at jobs lost, gained and transformed as a result of automation technologies such as artificial intelligence (AI). However, the issue can be (and is) much more complex and interconnected, with areas such as how/where future

work will get done (in office/remote/ virtual), who will be doing the work (contingent/permanent), what skills will be needed to stay current (education/ training level), and what happens to those left behind, just to name a few. For the sake of this article, we’ll focus on the job-specific parts of the topic and its implications for the industry. Some lessons from history It is clear we are now in the fourth Industrial Revolution (Industry 4.0). Like the first, the second and the third, the current revolution can glean some lessons and insights from its predecessors as it proceeds forward. In every case, previous industrial revolutions have had both positive and negative impacts on society. Some of the positives included greater labour productivity, higher wages and quality of life for many workers, the rise of new job roles, and many others resulting in more affordable consumer products. However, on the flip side, society also experienced over-crowded industrial towns, environmental pollution, often bad working conditions, as well as others. Current predictions Most studies have typically started with taking a look at the current global capabilities of automation technology, then forecast the percentage of jobs that can be partially/totally replaced through automation,

“In every case, previous industrial revolutions have had both positive and negative impacts on society” and then add back estimates of newly created jobs (that didn’t exist previously) due to automation. Different studies will take closer looks by industry segments, job families, specific countries, demographic group or all of the above. A good example is a study done by McKinsey’s Global Institute, which has been tracking this space for some time. Some of its findings for 2030 include: • 50% of work activities are technically automatable (using current technology) • 6/10 occupations have >30% of their jobs ‘automatable’ • 15% of work will potentially be displaced as a result of automation • 8-9% of workforce will be new roles. PwC also published a study titled Workforce of the Future – Competing Forces Shaping 2030, which shared some additional insights, including: • 21-38% of jobs are at risk of automation in the most developed countries • The speed of these changes is gasworld.com/specialfeatures

NEW! BUSINESS SERIES

27%

Emerging job roles like Data Analysts or E-commerce Specialists will grow from 16% to 27% of jobs by 2022, says a WEF survey dependent upon several factors including continued technology improvement, the role of government incentives, public sentiment and corporate drivers • A global employee survey shared that 74% of employees are ready to learn new skills or completely retrain to remain employable. A much shorter term view (2018-2022) came from the World Economic Forum’s survey of global senior executives last year, giving a perspective of how fast things may be changing. Some of its key takeaways included: • Emerging job roles (like Data Analysts, Software/Applications Developers, and E-commerce Specialists) will grow from 16% to 27% of jobs • Another cluster of job roles (such as Data Entry, Accounting/Payroll Clerks) will decline from 31% to 21%, nearly offsetting the gains in emerging roles • While overall job losses are predicted to be offset by job gains, there will be a significant shift in the quality, location, format and permanency of new roles

“The key takeaways are that automation of job roles will continue for the foreseeable future, all job roles across all industries will be affected, and the resulting workforce will be very different...” • Expect growth in job roles that leverage distinctively ‘human’ skills • Also expect growth in new specialist roles related to understanding and leveraging the latest emerging technologies. The key takeaways are that automation of job roles will continue for the foreseeable future, all job roles across all industries will be affected, and the resulting workforce will be very

different. Our industry is not immune to any of these automation trends. In fact, if one takes a closer look at some of the actions of the global and large regional players, they will see that the journey has already begun. Here’s a few examples: • Distribution and logistics – The Tier One players have been using advanced analytics for some time to optimise both bulk and packaged logistics activities. Air Products shared it had partnered with a third party analytics company since 2010 and upgraded its Optimiser with the company in 2015. Linde (prior to its merger with Praxair) communicated that it had partnered with Paragon to optimise scheduling activities at packaged gas facilities around the world. • Remote Operating Centers (ROCs) – All Tier One players and some regional players have implemented ROCs to monitor, optimise and remotely control ASUs, HYCO plants and pipeline networks for a country or regional geography. Air Liquide recently started up a ROC in Southeast Asia that leverages predictive analytics January 2020 • gasworld | 59

NEW! BUSINESS SERIES | TALENT MANAGEMENT

and digital technologies to optimise operations across the region. • Cylinder plant Automation – Linde AGA inaugurated the world’s largest fully automated filling plant for industrial gases in Finland in 2017. The facility’s staffing is completely different, with fewer staff handling cylinders and more staff focused on keeping the automation running optimally. In all cases, companies are leveraging Industry 4.0 technologies, changing job roles, redeploying staff and yielding greater levels of productivity. What should companies be doing? If you are a senior executive or independent business owner/leader, and you are not sure where to start, here are a few recommendations: 1. Refresh strategy – Clearly identify desired ‘customer centric’ business outcomes and the associated challenges that are preventing you from achieving them…be realistic. Then identify ‘digital enablers/ solutions’ as well as ‘people changes’ necessary to address those challenges. It is likely that members of your executive team (or their direct reports) are aware of solutions that address the asset management, distribution and logistics, innovation and commercial challenges that many companies are facing. If internal ideas are not sufficient, utilise an external trusted

“In all cases, companies are leveraging Industry 4.0 technologies, changing job roles, redeploying staff and yielding greater levels of productivity...” 60 | gasworld • January 2020

4. Sustainability plan – Most companies focus their sustainability attention on the transition from the current to the future solution architecture, standards/policies, security and other IT aspects that we are very proficient at. However, it also includes building a sustainable 2. Change management – organisation – an Develop a comprehensive Up to 38% of jobs could organisation that plan that engages be automated by 2030 doesn’t crater when one employees early, in developed key person departs or communicates progress countries gets sick for an extended along the way, and shows period of time. Take into them how their jobs will change. account regular up-skilling/cross We tend to focus our communications training of team members inclusive more on the customer and vendor of vendors/partners. change management tasks rather than employees for some reason. But for In summary projects to be successful, companies need to fully engage/involve employees The ‘Future of Work’ is a big issue in the transformation, especially if their and opportunity. The companies that look at it as an opportunity to help jobs are changing, may/will require develop a sustainable competitive new skills or may go away entirely. advantage, will gain ground amongst A recent CNBC article discussed their competitors. Those that are late this and confirmed a longstanding adopters will likely be left behind in assertion that over two-thirds of certain markets. So, which company digitally-based transformations fail for are you – viewing the Future of one overwhelming reason – failure to effectively communicate goals, strategy, Work as an opportunity or an issue? Ultimately, it will be your actions in the purpose and outlook with employees. short-term that determine the answer... gw 3. Start small, think BIG – A similar approach to many project ABOUT THE AUTHOR transformations, but what makes Art Anderson is Managing Principal for this different are the ‘people’ aspects. AH Anderson Consulting, LLC. He has Yes, you start piloting the technology more than 30 years of industrial gas with a group of customers, secure business and consulting experience, your quick wins (successes) that help most of which was spent at Air Products build momentum, and then start the where he held leadership roles in sales, process of scaling to the rest of the marketing, product management and customer base. However, in parallel, regional P&L management for the full there is a set of activities related to the portfolio of offerings. process of scaling the transformation, He currently provides strategic but more focused on designing the advisory and hands-on support to future state of the organisation and companies in the Industrial gas and how it will get there. There are many specialty chemicals industries looking variables including staffing approach to improve their competitive position, (up-skilling, new hires, redundancies), lower operating costs, improve speed of transition, and local productivity and optimise the customer government/union incentives and experience. restrictions. The more time spent here www.ahandersonconsulting.com gw increases overall project success. advisor to assist. Also, personally own the automation debate – it’s too important an issue to leave to IT (or HR) to champion. And finally, don’t wait! The impact to your part of the industrial gas space is not 5-10 years away, it’s already in motion.

2030

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REVIEW | MENA INDUSTRIAL GASES CONFERENCE 2019

A region with so many opportunities ahead MENA Industrial Gas Conference 2019 review By Rob Cockerill

he opportunities are there, the technologies are ready and the MENA region is primed to realise its next wave of growth. That was the overriding message from the MENA Industrial Gases Conference 2019 in Dubai, UAE. Around 240 delegates from around the world gathered for the event over the its 2.5 days, held at the Hilton Dubai Al Habtoor City hotel complex, including strong local participation. The conference addressed the theme Business Models Fit for Purpose in the Middle East and North Africa, exploring thxe challenges and opportunities facing the region as it moves forward into the next decade, through a series of pointed panel discussions and regional case studies. Conference day one set the scene as it described both the change in the region over the last decade and the challenges it currently faces against a backdrop of increasing costs and squeezed margins. The MENA region has experienced huge change in both supply models and

62 | gasworld • January 2020

actual demand for industrial, medical and special gases over the last decade. There has been the significant entry of the major gas companies such as Air Products, Air Liquide, Linde, Messer and Praxair, which have focused not only on the major onsite projects that have arisen across the region but also on acquiring positions in the merchant market. There are changes at the customer level, with the large energy companies focusing on downstream oil and natural gas – giving rise to more investment projects at tonnage gas consumption levels, but also impacting demand for merchant gases. This was reflected on by gasworld Publisher and CEO John Raquet in his

“Industrial gas prices have declined in many countries due to the increased competitive environment...”

official opening of the event. He explained, “The region is facing several challenges – it is clear that many independent companies are starting to feel squeezed.” “Industrial gas prices have declined in many countries due to the increased competitive environment; but another challenge comes from the rising costs of doing business within the region. So our theme over the next two days – Business Models Fit for Purpose – aims to address some of these challenges you face and hopefully provide some answers.” Day one also underscored the enduring potential the region is home to, with a passionate keynote talk from Air Products Chairman, President and CEO Seifi Ghasemi in particular describing how the Middle East should be “proud of their past and aspire to reinvent their past glory.” Titled From The Cradle of Civilisation to Energising the World, Ghasemi’s presentation described how the Middle East region is the birthplace of civilisation as we know it. He explained that it’s where, up to 10,000 years ago, humans gasworld.com/specialfeatures

REVIEW

first domesticated sheep and wheat and established farming communities in the Fertile Crescent; where 7,000-9,000 years ago the first slow-fired pottery was made and the potter’s wheel was invented; where 5,000 to 7,000 years agohumans first developed irrigation and flood control and made sailboats in Mesopotamia; and where 3,000 to 5,000 years ago humans started using modern ploughs in Mesopotamia, and beganmaking bread using yeast. “This is where human civilisation, as we know it, began,” he said proudly. “It all happened here. The people of the Middle East should be proud of their past and aspire to reinvent their past glory. It can be done, it was done before, and it can be done again.” This affirmed the sentiments of Raquet when introducing Ghasemi, having said, “This region means more to Seifi than just business – it is part of his DNA.” The focus did indeed move onto business, however, with Ghasemi keen to point out that the Middle East region has the greatest concentrations of hydrocarbons in the world, and abundant sunshine to be converted into clean electricity and hydrogen fuel. “I am absolutely convinced that the fuel of the future is hydrogen, and green hydrogen at that,” he underlined. Adding that the Middle East region boasts a very young, dynamic and talented population, and already has great wealth, Ghasemi emphasised that, “The Middle East has all of the ingredients required for this region to have great progress and prosperity. That is why we want to significantly expand our presence here.” Air Products is already in the midst of growing its activities in the Middle East region. Since Ghasemi became Chairman, President and CEO of Air Products in July 2014, the company has built the world’s largest industrial gas complex in Jazan, Saudi Arabia, and established a worldclass technology centre in the Dhahran Techno-Valley. Air Products is also in the final stages of negotiations to acquire, start-up and operate the world’s largest gasification facility from Saudi Aramco. “We have already committed to invest

more than $12bn in industrial gas projects in the region,” Ghasemi explained. “We see significant additional opportunities in this region. We are proud to be in this part of the world, and we are committed to perform and create value for our customers.” Business models Day 1 proceeded to delve deeper into the challenges and change in the region,

“We are proud to be in this part of the world, and we are committed to perform and create value for our customers...” with topics including Successful Business Models, Downstream Project Activity in Oil & Gas, The Regional Industrial Gas Landscape and Qatar – Surviving and Repositioning Priorities. Omar Germouni, General Manager of Air Liquide Al Khafrah Industrial Gases, began in earnest with his presentation of Successful Business Models, drawing upon his two decades of international experience harnessed in North America, Europe and of course the AfricaMiddle East. He proceeded to discuss the importance of a value proposition, and devising that proposition with the customer and not the shareholder in mind, as well as mass markets, niche markets and the threats and opportunities ahead for the industry. Uberisation of the industrial gases industry is not to be under-estimated, he noted, while the tipping point for a ‘beyond oil peak’ was a topical area of discussion for the region. “The growth is not where oil is,” he added, “it is going to be somewhere else.” It was then over to Nataraj Kuhan, Consulting Director for Middle East & India at IHS Markit Chemical Consulting, to discuss Downstream Project Activity

in Oil & Gas. A seasoned chemical consultant with a total experience of 17 years, Kuhan explained how the outlook in oil and gas markets and petrochemicals is shifting. Though a temporary situation, he explained how security risks remain high after attacks on oil tankers and Saudi Arabia oil facilities, how Saudi Arabia’s real GDP growth has moderated significantly in 2019, and the impact all of these dynamics are having. Demand for petrochemicals is growing more rapidly than fuels, he added, while COTC (Crude Oil To Chemicals) will become a key area of growth for the petrochemicals industry. “This will be a key enabler for the industrial gases business going forward.” Rounding off the first session, it was over to gasworld’s own Business Intelligence Manager, Karina Kocha, to present The Regional Industrial Gas Landscape in MENA. Kocha described how the market has changed significantly over the last decade, with average annual Middle East market growth of 5.9% from 2008-2018, and average annual growth of 5.2% in the GCC region specifically in the same timeframe. In North Africa, there has been average annual growth of 3.6% in this period (2008-2018) too. Regional case studies After a Q&A panel and following coffee break, Session 2 resumed the activity with an exploration of Regional Case Studies, Chaired by Cryostar’s Hassina Rekima. First up was Frank Brunsdon, General Manager of Buzwair Gases Qatar, a role he has held for the last 12 years. With over 30 years of ‘the most memorable and exciting times’ in the industrial and specialty gases industry and ‘still experiencing new gas applications and technologies with hands on knowledge today’, some of the most frequent questions Brunsdon faces today are about Qatar’s helium and industrial gas developments in recent years. In his talk, titled Qatar – Surviving and Repositioning Priorities, he gave an honest and gritty assessment of the competitive market that exists in Qatar today, as well as the wider trends shaping the Qatari January 2020 • gasworld | 63

REVIEW | MENA INDUSTRIAL GASES CONFERENCE 2019

market/economy and addressing how smaller, local companies can not just survive, but thrive. It was then left to Global Gases Group’s Swapnil Vichare to complete Session 2 with a discussion of Offshore Services. Having given an introduction to the Global Gases Group, Vichare explained where diving gases and construction gases are used in offshore applications such as below oil rigs or in laying offshore pipelines, or even in hyperbaric and saturation chambers. Speakers, sponsors, delegates and exhibitors alike then enjoyed a sumptuous lunch break and networking opportunities provided by Silver Sponsor Dohmeyer. Director Fabian Van Damme took the opportunity of the MENA conference and the company’s Silver Sponsorship to announce a brand new development with its partner Taylor-Wharton. The two companies, via Dohmeyer, have unveiled a new distribution centre in Jebel Ali which will provide the entire range of TaylorWharton products for the GCC region. A four-hour afternoon booth programme and networking window concluded conference day one, with no less than 40+ key product, equipment and services innovators all showcasing their value-add and building on the strong footfall observed the day prior. The evening saw an official Conference Dinner

and Reception provided by Gold Sponsor Air Products, and featuring an insightful after-dinner speech from Naji Skaf, President of Air Products Middle East, Egypt & Turkey, and celebration of retiring MEGA general secretary Frank Finger. Day two – operations and technologies The speaking agenda for day two picked up the baton and began with an insight into the Success Factors for a Tier 2 Gas Company from opening keynote Renato Imeri, Head of the SOL Group’s (Italy) Industrial Gas Division outside of Europe. Imeri described the SOL Group’s roots in Italy and how, through the decades, the company expanded beyond Italy and into wider Europe. He also explained how the company diversified into the medical and homecare business; the company serves 400,000 patients today and the homecare business has become so significant to the SOL Group, that Imeri described that diversification all those years ago as ‘a necessity’. SOL Group is active in 29 countries, across four continents, and boasting 4,000 employees today, Imeri explained, noting that there have been several elements of strategic diversification along the way – and not just in applications served. He cited the importance of long-lasting partnerships with local players and partners, while also alluding to the 2008/9 global recession and the impact this had on Europe as a catalyst for the company to reevaluate its position again and branch out beyond Europe, starting with investment in the emerging Indian market. “You have to be brave and do the best in taking opportunities to secure the best future for your company,” he opined. Having cited five success factors for a smaller enterprise in the industry, he concluded, “And we have to dream. For a Tier 2 company it is always important to have a vision for the future.” Productivity and internal drivers With these success factors

established and the scene already set on the change and challenges in the region, the agenda moved onto the technologies and operational approaches that can unlock the potential in the region. Session 3, Chaired by Finger, began with a talk from Ian Davies, Managing Director of IGPH, on the subject of Optimising Cylinder Filling in the Middle East. Davies discussed the latest trends in cylinder filling systems and technologies, and stressed the significance of new automated systems and the productivity these can bring to users in the Middle East, adding, “You get correct results first time, every time, with automation. And productivity is key, as we all know in this room.” Davies placed particular emphasis on the company’s ‘Winter’ fill system, which he described as “very appropriate for this region,” alluding to the region’s inherently warm ambient conditions. The ‘Winter’ fill system includes control systems that ‘control’ the repeatability and offers high accuracy and limiting of the heat of compression. By delivering colder gas to the filling module, it delivers continuous filling by eliminating cool-down disruptions and increased equipment life as a result too. The technology pendulum then swung to asset management and more specifically, Telemonitoring and Bulk Logistics, courtesy of Chet Reshamwala, CEO of Anova. Reshamwala began by explaining Anova’s strong history in remote monitoring solutions and telemetry technologies, as well as its recent acquisitions and how the company has carved out a global leadership position. Discussing an in-house study on the delivery of cryogenic products, he added, “We know that companies today are spending 40% more than they need to on the execution of their business. That’s an astonishing number.” “This comes from our thorough analysis of over 1,500 customers that we serve today. It comes from trucks and the wear and tear on those trucks, the driver costs gasworld.com/specialfeatures

REVIEW

during busy seasons, the scheduler’s time, and so many other factors that we might not even think about in your operations.” Reshamwala went on to describe the increasing rise of digitisation, how this trend is inescapable and industry as a whole is investing heavily in IOT technologies. He explained how these technologies and the rich data they provide can not only make companies’ operations more efficient and costeffective, but also make a huge impression with their customer base. Anova estimates that there’s around 23% average growth in telemonitoring technologies year-on-year in the global industrial gases business. Reshamwala described the large installed bases already in North America and Europe for example, and highlighted the opportunity for greater adoption of today’s state-of-theart telemonitoring technologies in regions such as the Middle East, particularly so now that these solutions are becoming more cost comparable with the economies of scale and adoption. There was also time for Reshamwala to deliver an exciting announcement from Anova, with the launch of its new Connected Tank Management System. Driving safety in the Middle East Rounding off the session was a talk from the new General Secretary of the Middle East Gases Association (MEGA), Roger Sayah. Formed in 2010 as the safety, standardisation and technically-oriented association for the Middle East region, including the GCC, MEGA strives to promote and improve safety and standardisation in the region. Sayah outlined the curent key safety issues of the MEGA geographies, as well as the need for regulatory control by authorities, the risk of non-compliance with laws and regulations, and the consequences of ‘missing the mark’ on these regulations. Continuing the theme of safety was Jan Strybol, the new Deputy General Secretary

of EIGA (European Industrial Gas Association). Strybol discussed Medical Gas Operational Excellence and began by warning, “When we talk about medical gases, we talk about regulations, it’s inescapable.” He proceeded to describe the different classifications of medical gases, as well as manufacturing processes and Good Manufacturing Practice (GMP) guidelines, adding “If you do want to avoid disasters, then comply with the letter and the spirit of the regulations in medical gases.”

“We also have to make our customers familiar with cryogenics, give them more training and understanding of our products. This is our duty...” Opportunities The gasworld stage was then given to Fabian Van Damme, Director of Dohmeyer, to discuss Food and Pharmaceutical Market Drivers. Founded in 2003 and with more than 3,000 references in 62 countries across the world, Dohmeyer is well placed with its observations of these markets from a cryogenic freezing equipment perspective, and Van Damme noted that there are many specialist applications emerging which present opportunities for growth – but also calls to action for the industry to respond to. Pharmaceuticals market growth (22.4% annually and growing very rapidly) was cited in particular. Describing the internal growth drivers, he urged, “It’s our duty as a gases industry to innovate – to develop new technologies and applications, to bring new solutions to market. There’s a lot of space for more innovation, more efficiency. There’s a lot of space for new applications.”

“We also have to make our customers familiar with cryogenics, give them more training and understanding of our products. This is our duty.” Peter Toftegaard Hansen of Pentair Union Engineering continued the note of internal growth drivers in his subsequent presentation, covering CO2 Market Dynamics for the Middle East. He gave a view of the increasing adoption of clean energies and circular economies related to carbon dioxide (CO2), the new sources that need more complex technologies, and the new CO2 sources and opportunities in the Middle East in particular. Finally, the stage was set for the event’s closing keynote – a first for gasworld conferences. Phil Kornbluth, President of Kornbluth Helium Consulting and globally renowned for his expertise in the global helium business, did the honours with his esteemed insight into Helium and the Worldwide Supply Chain. After a rapturous round of applause, it was left to gasworld Publisher and CEO John Raquet to officially close the conference. “The way I summarise what we’ve heard today and yesterday, and what you are experiencing in the Middle East, is that the region is clearly a very dynamic region, loaded with opportunities. There are not many regions of the world that have such opportunities – and the scale of them – set out before them.” “We have explored so many levels of these opportunities and we hope you’re leaving this forum full of optimism for all of the opportunities ahead and take that other underlying message – that we need to move out of our traditional modes and mindsets and realise the new ways of thinking for our industry around strategy, data and applications.” The gasworld events stage now moves on to Munich in April 2020 for the Hydrogen Summit 2020, introducing H2 View to the events scene. For more information on all gasworld events in the year ahead, from Munich to Malaysia, visit www.gasworldconferences.com. gw January 2020 • gasworld | 65

EQUIPMENT PROFILE | JUMPER CONNECTION

An introduction to...

Jumper connections

t the GSI Helmholtz Centre for Heavy Ion Research GmbH, a new accelerator facility called FAIR will be built within next years. This facility will comprise two main machines: the SIS100 synchrotron and Super-FRS fragment separator for rare isotope beams. There will be 57 superconducting magnets to be tested in the B180 test facility at CERN, before final installation in the Super-FRS. Why is all of this significant? For this project there are fundamental cryogenic equipment needs to be met and, more specifically, three jumper connections are required to facilitate liquid flow throughout the system. So what are jumper connections? Jumper connections are a branch of cryogenic equipment used to literally connect or link the flow of cryogens between distribution lines in a system. In this particular instance, jumper connections were designed and delivered to establish liquid helium hydraulic connection between satellite valve boxes at each of three test stands and the respective magnet cryostats to be tested there. Helium to each test stand is provided by a transfer system that was already supplied by Kriosystem and consists of a central valve box, three satellite valve boxes and transfer lines. To complete the system, three jumper connections were designed and delivered for establishing hydraulic connection between the satellite valve box and magnet cryostat at each test stand. Every jumper connection will be used for testing up to 20 Super-FRS cryostats and, as a result, will be subjected to multiple connection and disconnection procedures. Design Jumper connection must be highly flexible to deal with large installation tolerances. In addition to that, all components need to be able to compensate for evacuation,

66 | gasworld • January 2020

pressurisation, cool-down and cold state displacements. Therefore, both elastic hoses and angular expansion joints are used. Initial conception included axial expansion joints, Kriosystem explained, but since they generate pressure loads and require large adjusting forces, this idea was dismissed. The device consists of vacuum jacket, helium-cooled radiation shield and five process pipes that are used to transfer both liquid and gaseous helium. The jumper connection vacuum envelope is made of stainless steel, with the bottom part permanently welded to the satellite valve box. In order to keep the connection and disconnection procedures quick and simple, the magnet side of jumper connection is equipped with a muff, along with a set of flanges. Assembly enables translation of the expansion joint towards jumper connection and thus, provides access to process pipes and radiation shield. A radiation shield is designed in such a way that it can follow the movement of the vacuum envelope and, therefore, the

“The jumper connection must be highly flexible to deal with large installation tolerances...” location of elastic connections between its pieces corresponds to the location of angular expansion joints on the vacuum vessel. In order to make the radiation shield follow the vacuum vessel, G10 spacers are used in crucial locations. The jumper connection is equipped with five process pipes, both for liquid and gaseous helium. Each line includes three corrugated hoses that are located just by angular expansion joints, so that process pipes can follow the movement of both radiation shield and vacuum vessel. It is designed to provide large enough flexibility, to absorb 75% more movement with relatively low adjusting force rates, and to withstand temperatures of -269K and pressures of 19 barg. gw

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www.gasworld.com January 2020 • gasworld | 67

COMPANY PROFILE | NORTH AMERICAN HELIUM

North American Helium Grassroots helium exploration

ased in Calgary, Alberta, North American Helium currently controls over 3.1 million acres of helium mineral rights in North America. The helium exploration and production company was founded in 2013 by its CEO, Nicholas Snyder, on the belief that grassroots helium exploration is essential in North America. North American Helium operates in the ‘upstream’ segment of the market, where it focuses on finding prospective properties, acquiring land and seismic, drilling exploration and development wells, and ultimately putting these fields into production. North American Helium is unique in that it has made a substantial commitment to finding and developing new large helium fields rather than exploiting existing discoveries. So far, the company has invested $40m on land, geologic and geophysical exploration, as well as drilling and completion operations. Over the last six years, Snyder has assembled a core team of geologists, geophysicists, engineers, and land and financial professionals which operate out of the company’s headquarters. At present, North American Helium is looking to develop new sources of reliable long-term helium supply to replace the depleted Bureau of Land Management’s (BLM) system in the mid-continent region. A main focus for the company is to discover and develop large high-pressure reservoirs of helium and nitrogen, which can be developed in a more environmentally sustainable manner than helium resources which are associated with methane or carbon dioxide (CO2).

Milestones Back in 2017, North American Helium was the first company to identify a prospective helium-trapping structure and 68 | gasworld • January 2020

successfully drill a ‘wildcat’ exploration well and make an economic discovery of a new helium field in North America in 50 years. It’s willingness to embrace geological risks resulted in a few unsuccessful wells and adjustments to its exploration theory before achieving success which has been followed up with numerous additional successful exploration wells in other fields. North American Helium is currently preparing to break-ground on its first large-scale helium purification facility at its Battle Creek field as well as looking into options to go into nearer-term production in some of its other fields. Battle Creek is located in the extreme corner of SW Saskatchewan, 15 miles north of Montana and 15 miles west of Alberta. The North American Helium team is currently working with industry partners to commercialise the Battle Creek field as well as other fields they have discovered to support a regional liquefier in SW Saskatchewan. Significant work has already been carried out on the facility, 2D and 3D seismic data has been gathered, purchased, and reinterpreted to outline the extent of the structure. North American Helium has already drilled five successful wells at the site, followed by extensive flow and build-up testing at each well, which indicated reserves are present to fill the plant for 15 years. © North American Helium

Exploration Over the last five years, North American Helium has devoted the majority of its expenditures and management focus towards exploration activities. In 2017, the company shifted its focus from understanding the sourcing, migration, and trapping of helium to acquiring rights to lands and structures to begin large scale seismic exploration and drilling. “Without exploration, there won’t be a ‘next field’ to bring into production at any helium price,” Nicholas Snyder, CEO of North American Helium tells gasworld. North American Helium explains that exploration for any resource is about being able to get a good return on the company’s investment and the more efficient way to do this is through exploring an area which has previously been proved as an economic discovery. The company finds itself fortunate in that companies who explored in Saskatchewan (location of the Battle Creek field) and the western US for oil in the 1960s found helium in a few places. 2020 Vision Looking to new year, North American Helium will put a few fields into smaller-scale production in 2020 whilst constructing the larger plant at Battle Creek. The company looks forward to commercialising its property in Utah and hopes to be in a position to fullydelineate some of its larger fields near Battle Creek and order its second plant to get enough scale in the region to justify construction of a liquefier. “Our goal is to develop new sources of helium supply in North America, the world’s largest helium market, to ensure that this vital element is available for science and industry in the coming decades.” gw gasworld.com/specialfeatures

COMPANY PROFILE

400 - 750 11th Street SW Calgary, AB T2P 3N7

www•nahelium•com

New sources of reliable long term helium supply are needed in North America

• • • • • •

3 million acres 4,000 Km of 2D seismic 90 Km 2 of 3D seismic 10 successful wells DrilleD 4 new fielDs DiscovereD moving into proDuction

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Around the gasworld in 280 characters 09/12/2019 @anovasolutions We’ve officially touched down in #Dubai for #GWMENA19! if you’re at the show, be sure to visit us at booth 11 and join the Anovasponsored Welcome Reception! #industrialgas #SilverSponsor

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12/12/2019 @PDCMachines Mike Walsh just completed exhibiting the MENA gasworld Conference in Dubai 9-11. To learn about our compression capabilities for pumping gases in an ultra pure state, visit our website at pdcmachines.com www.gasworldconferences.com

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Before you consider your storage... First you should consider your Control Rate Freezer

cryogenic freezing precision

The long term viability of your sample or specimen is determined during the freezing cycle, not by the storage. Dohmeyer Control Rate Freezers, designed speciďŹ cally for the Life Science and Pharmaceutical Industries, will give you a process that you are in charge of. Allowing you to choose a freezing cycle that can be tailored to suit the product and batch size : more than 20.000 straws, 35.000 ampules, 1.000 CB freezing bags or 300 plasma bags per cycle ! Dohmeyer has a range of standard products designed for batch or continuous processing within the Life Science and Pharmaceutical Industries. If you need a ďŹ&#x201A;exible, controlled solution to your freezing requirements please get in contact with us.

Dohmeyer

Europe +32 9 241 5222 Middle East +971 4 319 9365 USA toll-free +1 (833) 364 6393 www.dohmeyer.com info@dohmeyer.com