Presenting IGU’s new members

IGU welcomed seven new Associate Members at the last Council meeting in October 2018 in Venice, Italy. In the following pages they give brief overviews of their activities and their reasons for joining the Union.

Baker Hughes, a GE company

By Paul Doucette Baker Hughes, a GE company (BHGE) is the world’s first and only fullstream provider of integrated oilfield products, services and digital solutions. Drawing on a storied heritage of invention, BHGE harnesses the passion and experience of its people to enhance

productivity across the oil and gas value chain.

BHGE helps its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. Backed by the digital industrial strength of GE, the company deploys minds, machines and the cloud to break down silos and reduce waste and risk, applying breakthroughs from other industries to advance its own. With operations in over 120 countries, the company’s global scale, local knowhow and commitment to service infuse over a century of experience with the spirit of a start-up – inventing smarter ways to bring energy to the world.

Our complete gas offering

Global market demand for gas services and support is growing. More consumers and market sectors recognise how gas serves many energy needs, and operators must continue to optimise efficiency and reliability. BHGE has a complete portfolio offering that differentiates us in the gas market: from concept design to well construction and production, to LNG operations, fuel transport and the end customer.

BHGE has a complete portfolio offering including offshore operations (above) and data visualisation (inset).

With a fullstream portfolio of integrated gas technologies, solutions and services that improves productivity and reduces carbon footprint, we focus on five priorities:  Pioneering in LNG and FLNG;  Driving lower carbon, cleaner energy;  Creating new business models;  Supporting global gas megaprojects;  Unlocking unconventional resources.

BHGE was created in 2017, by combining GE’s oil and gas business with Baker Hughes, to specifically address the recent market challenges, and to take on the opportunities of the transformation of the natural gas and oil industry. We believe we are bestpositioned to support global players achieve the productivity and efficiency gains required for a sustainable future.

The downturn has also driven some much-needed realignment and mindset changes:  An increased focus on driving operational efficiency and productivity has encouraged adoption of digital applications and innovative technologies to reduce downtime and total cost of ownership for customers;  A greater openness to collaboration between operators, service companies, industry representatives and regulators;  It is also forcing all parties to be much more creative and innovative in their commercial approaches – companies are sharing risks and rewards and providing different financing options.

We work with our customers to create new and adaptive business models that match economic realities with financing, project management, engineering, construction and commissioning, co-development technology solutions, software applications and data analytics.

Joining IGU

At BHGE we are interested in the future growth and development of the industry in a sustainable manner and want to interact to support the global gas community and the goals of IGU. We wish to become an active participant in IGU committees. We also have considerable interest in developing and deploying technologies that will assist our customers in operating more sustainably and maintaining the social licence to operate for our industry.

Paul Doucette is General Manager Global Industry Affairs and Stakeholder Engagement at Baker Hughes, a GE company. For more information, visit: www.bhge.com.

v The Sewerin group of companies are the market technology leaders in gas and water measurement.

The Sewerin group of companies

The Sewerin group of companies is an internationally successful, technically innovative, family-owned group with headquarters in Gütersloh, Germany.

With top level products and services, the Sewerin companies are the market technology leaders and partners to the gas and water supply industry. With over 90 years of experience in the development of measuring devices, the knowledge accumulated by their own measuring teams contributes significantly to their success.

At the Gütersloh location, the innovative measuring devices move through development, design, testing and production before they are finally ready for the market. Throughout there is a particular emphasis on high quality and functionality. An important factor of success is the production in Germany.

In addition to the sale of measuring devices and services offered by the gas and water leak detection teams, the Sewerin group of companies offers

stationary and mobile device maintenance service, development of emergency and leakage service vehicles and servicing and repair of home installations. In addition, a comprehensive programme of seminars with test track rounds out the spectrum of services.

An extensive distribution network consisting of sales engineers, subsidiaries and distribution partners in over 90 countries makes success on a global level possible.

Sewerin is honoured to join IGU, as membership of this most reputable collaborative platform for the gas industry offers the opportunity for active networking, the international exchange of experiences and technologies as well as valuable insights into market developments and industry trends.

For further information, visit: www.sewerin.com.

Israel Natural Gas Lines

Israel Natural Gas Lines (INGL) is a government owned corporation, established in 2003 for the construction and operation of the natural gas transmission infrastructure in Israel. This activity is of utmost importance for Israel from two standpoints – its impact on Israel’s economy and industry, and its contribution to the improvement of environmental quality

Company Limited

INGL has laid approximately 700 km of high-pressure pipelines.

and reduction of air pollution. INGL adheres to the most stringent international standards in its construction and operations, and makes use of sophisticated logistical tools, advanced technologies and a wide range of international professional contractors and consultants. INGL builds its facilities from an ecological perspective and according to sustainable development principles. The company makes judicious use of resources and technologies to facilitate landscape restoration and natural and rapid return to cultivation of the transmission infrastructure areas. The natural gas that INGL transports is currently the least expensive and most efficient energy source available to the

Israeli economy, and its use signifi

The STL buoy for INGL’s Hadera deepwater LNG terminal before instalation.

cantly reduces the costs of generating electricity and energy for industrial use and its impact on the environment.

INGL’s 130 employees are involved in planning, engineering, construction, operations, maintenance, security, finance, legal issues and management. The company has earned a marketleading credit rating by the rating agencies, Moody’s and S&P. INGL leads the energy infrastructure revolution in the State of Israel for cheaper energy, cleaner air and a strong economy for its citizens.

Natural gas pipelines throughout Israel

The Israeli natural gas transmission system includes various facilities:  Natural gas receiving stations located at the entrance to the INGL network in the cities Ashdod and Ashkelon.  Deep-water LNG receiving terminal and mooring system to receive natural gas from floating storage and regasification vessels, located approximately 10 km west of the city of Hadera and connected through an offshore line to the national transmission system.  Underground pipelines onshore and offshore for transporting high pressure natural gas throughout the country.

From its establishment in 2003 up to the present day, INGL has succeeded in installing approximately 700 km of high-pressure pipelines, 50 PRMS stations to reduce pressure and provide measurement located at the consumer delivery points, block valve stations throughout the system, facilities for operations and security to monitor and control the network and maintenance and logistics centres at several locations nationwide.

INGL continues its efforts to develop the natural gas economy

Some 60% of the electricity in Israel is generated using natural gas, which INGL delivers to eight large power stations owned by Israel Electric Corporation and to independent power producers. In addition, INGL delivers natural gas to large industrial plants in Israel. INGL’s customer base continues to grow by connecting neighbouring countries, regional distribution networks, additional private power stations and new industrial customers.

Following the discovery of significant quantities of natural gas resources in the maritime territory of Israel, the market for natural gas in Israel, particularly for gas-powered electricity generation, increased dramatically. Accordingly, INGL continues to develop the natural gas sector, increasing the reliability of the national transmission system, to ensure a safe and reliable supply of gas to its customers. INGL is currently working on several projects to further expand the network, including a new pipeline to Jerusalem, doubling pipelines in the south and the north of Israel, and building new export pipelines to Jordan and other regional customers.

IGU membership

INGL expects IGU membership to be greatly beneficial by providing access to a valuable knowledge base and worldwide network of professionals covering various important technical and other areas of the natural gas business. INGL believes that any opportunity to participate in relevant IGU work groups such as natural gas transmission, regional development etc., will help the organisation maintain its role as a leading company in the Israeli natural gas market.

For further information, visit: www.ingl.co.il.

Oman Gas Company

Since its inception in 2000, Oman Gas Company (OGC) has grown in stature and reputation into an integrated enterprise harnessing the power of Oman’s natural gas transportation. The Company employs more than 490 people, of whom 90% are Omanis.

For long the nation’s gas transportation utility, OGC is being primed for an ambitious role within the restructured Oman Oil Company’s (OOC) vision to serve as one of the prime movers of the Sultanate’s economic growth.

“Our goal is to emerge as the undisputed leader in the gas infrastructure business in the region.” Sultan Al-Burtmani, Acting Executive Managing Director of OGC.

“It’s a far-reaching mandate that will place OGC on a growth trajectory with potentially global ambitions,” said Sultan Hamad Al-Burtmani, Acting Executive Managing Director of OGC. “Our goal is to emerge as the undisputed leader in the gas infrastructure business in the region.”

As part of this transformation, OGC is in the process of converting the operation of its gas transmission network into a regulated activity, similar to how energy infrastructure utilities operate in Europe, thereby enhancing its role to maintain an efficient, uninterrupted and safe supply of natural gas to end-users around the Sultanate.

This new revenue model is called Regulatory Asset Base (RAB); it is a system of long-term tariff design aimed primarily at encouraging investment in the expansion and modernisation of infrastructure, such as gas networks. International practice shows that RAB-based tariff regulation, as opposed to Cost-Plus pricing mechanisms, has several advantages for customers. These advantages accrue primarily in the form of reliable gas supply and assurances of a better quality service stemming from new investments.

In line with this and with the company’s fundamental objective to

Through its gas facilities and pipeline projects OGC aims to provide the backbone of the Omani gas industry. become the backbone of the Omani gas industry, OGC recently signed an agreement with seven international and local financial institutions to secure $1.1 billion funding for capacity expansion requirements under the new business model for its gas network.

“Oman Gas Company have the technical know-how, they have proven themselves as a reliable operator of the gas network in the country, they know the system very well, they know the customers very well, and they are extremely competent in terms of managing the relation between the seller and the buyer” said His Exellency Salim Al-Aufi, the Undescretary of the Ministry of Oil and Gas in Oman.

OGC is also implementing a slew of gas pipeline projects that will add around 600 km of new pipeline capacity to the company’s sprawling, countrywide gas network. According to Al-Burtmani, new gas pipelines are under construction in the north and southeast of the Sultanate to help support the growing energy requirements of existing and emerging industrial hubs.

In the north of the Sultanate, OGC is constructing a 250 km, 36-inch pipeline from Fahud to Sohar, where new industrial and manufacturing investments are driving up energy demand in the Sohar Port and Freezone, as well as Sohar Industrial Estate. While in the southeast, OGC is overseeing the construction of a new pipeline from Saih Nihayda in central

Oman to Duqm, where the mammoth Special Economic Zone (SEZ) is under development. The 221 km, 36-inch pipeline will serve as an energy lifeline to investments using gas as feedstock in the Duqm area. This will take the total length of OGC’s gas network to well over 3,000 km.

OGC is moving strategically to maximise value creation from its gas transportation activities, notably by venturing into the gas processing and petrochemicals business. A case in point is the $820 million Salalah LPG project, which centres on the extraction of richer propane, butane and other NGL from natural gas to produce LPG. Further to this, OGC is joining hands with large organisations to further its diversification ambitions through collaboration and partnership. This was recently materialised after signing an agreement with Orpic (Oman Oil Refineries and Petroleum Industries Company) to operate and maintain the Natural Gas Liquid Extraction (NGLE) plant located in Fahud which is the upstream of Orpic’s mammoth Liwa Plastics Industrial Complex (LPIC) project in Sohar Port. A roughly 300 km pipeline connecting the Fahud NGLE plant with the Sohar complex will be operated and managed by OGC as well. This opportunity will develop OGC’s Operations & Maintenance (O&M) capabilities on world scale oil and gas process facilities and leverage that into future projects.

“Going forward, as OGC will play an increasingly important role in optimi- sing value creation from natural gas flowing through our network, we will be working closely with the Ministry of Oil & Gas, which signs all gas supply agreements with end-users, to ensure that our activities are in full alignment with the government’s strategic goal of harnessing the country’s hydrocarbon resources for the greater good of the economy,” Sultan al-Burtmani added.

For further information, visit: www.oman-gas.com.om.

ONC Energy

By Elena Kharitonova ONC Energy is a global energy financial services provider which specialises in providing capital market services to energy projects worldwide. The company was launched in 2017 and has offices in Beijing, Hong Kong, London, Shanghai and Shenzhen. ONC Energy represents the knowledge and experience of accomplished professionals with technical industry ability who deploy billions of dollars in energy sector development investment.

ONC Energy’s experienced international finance team is highly committed to cooperating with international industry leaders to provide quality finance, funds and equity investment and financing solutions to energy projects worldwide, so as to enhance global energy development.

Oil and natural gas experts

The ONC Energy team consists of technical experts and academic leaders of the three largest oil and gas companies in China. Our experts have been engaged in the oil and gas industry for three decades. They have organised and managed hundreds of oil and gas projects in more than 30 countries working with major companies such as BP, Chevron, Eni, ExxonMobil, Shell, Statoil and Total.

ONC staff visiting a potential investment project in Heilongjiang province, China, December 2018.

The professional technical capabilities of our company include the:  Study of geological and hydrocarbon characteristics of oil and gas basins;  Investigation of hydrocarbon accumulation conditions and distribution laws in oil and gas basins;  Research and conceptual design of the deployment of seismic surveys at various stages of exploration and development;  A fine interpretation of 2D and 3D seismic data;  Exploration deployment, development policy, exploration and the design of development wells;  Operation of oil and gas fields;  Rapid selection and economic evaluation of quality upstream assets;  Risk management and technology management of oil and gas projects.

Financial team, business areas, strategy and vision

Energy sector innovation will drive future economic trends in the industry worldwide. With a focus on the energy sector of the future, ONC Energy concentrates on promoting energy investment through global cooperation.

ONC Energy brings together talented people from around the world including Belgium, Canada, China, Korea, Russia and the United States. Our team members have extensive experience in the world’s leading investment banks and financial institutions.

ONC Energy’s multidisciplinary team stays abreast of the latest technologies, trends and projects within a sector. We work closely with energy organisations, government bodies and financial institutions around the world.

Our main business areas are:  The financial sector covering insurance, financial investment advisory services and private equity investment;  Natural gas – trading in China, the full supply chain;  The nuclear industry – we are a member of the World Nuclear

Association;  Investing in oil and natural gas projects, upstream and downstream, covering North

America, Asia and Africa.

Our business strategy encompasses:  High-quality upstream exploration and development resources, obtaining high-return upstream assets and extending downstream;  Implementing an efficient management and operation plan, adhering to the core concept of low investment and high production;  A strong technical research and development team closely integrated with domestic and overseas technical teams.

ONC Energy’s vision is to:  Strive to establish a suitable oil and gas asset mergers and acquisitions management system;  Create an expert and capable oil and gas asset acquisition team;  Build an efficient information sharing platform;  Develop a set of core competitive technologies.

Joining IGU

As is well-known, IGU is the most influential international organisation in the natural gas industry. Through years of hard work, IGU has built one of the great global communication platforms for gas industry practitioners.

For ONC Energy, joining IGU is a big responsibility and unique opportunity to be represented in the international gas market as an important player within a growing sector of the world economy. As an Associate Member, we see great prospects for the development of the natural gas industry. IGU has a long history and experience of working with different companies around the world and we believe that ONC Energy can learn from IGU and cooperate with many members of the Union. We are also pleased to participate in the range of workshops, training opportunities, conferences and exhibitions.

ONC Energy is looking forward to sharing experience and knowledge with other IGU members.

Elena Kharitonova is Overseas Business Development Manager, ONC Energy. For more information, visit: www.onc.com.

Posco Daewoo Corporation

Tracing its history back to 1967 with the foundation of Daewoo Industry Co., Ltd, Posco Daewoo has played a leading role in Korea’s economic development by promoting exports.

Renamed as Daewoo Corporation in 1982, the company took charge of its trading business. As a spin-off of Daewoo Corporation, Daewoo International Corporation was founded in 2000 as an independent company, specialising in international trade, project organisation and resource development. Achieving the remarkable development of 30% annual sales growth, it was incorporated into the POSCO Group in 2010 and in 2016 the company changed its name to Posco Daewoo Corporation, and in 2017 merged with the steel business unit of POSCO P&S, leading the path to the globalisation of the POSCO Group.

Today, Posco Daewoo is a worldwide integrated company with a network of over 87 international branches and subsidiaries. The company is Korea’s leading resource developer and has been strengthening this position by engaging in various projects worldwide. Starting with offshore gas field development in Vietnam in 1992, Posco Daewoo is involved in 14 resource development projects in 10 countries in the field of oil, gas and minerals.

A primary example is the company’s work in the Shwe gas field in Myanmar. Through this project, Posco Daewoo led the entire process from exploration and development to production as an operator. After commencing production in 2013, Posco Daewoo has been steadily providing 14.16 Mm3/d of gas to China and Myanmar. Furthermore, the company is pursuing new exploration activities and acquisitions of new oil and gas blocks to diversify its E&P investment portfolio.

Based on the experience of successful operating the Myanmar Shwe gas field, Posco Daewoo is expanding its oil and gas business to the midstream sector of liquefaction plant, trading, import terminals and pipelines with the LNG value chain and is also expanding the gas-to-power business, connecting downstream businesses such as gas power plant and bunkering. Posco Daewoo is engaged in plant operation with Oman LNG as well as the gas pipeline business in Myanmar with the South-east Asia Gas Pipeline Company Ltd (SEAGP).

With its active engagement in resource development and LNG businesses, Posco Daewoo believes that being an IGU Associate Member will provide the opportunity to establish networks with global gasrelated companies and to share recent industry trends by participating in conferences and exhibitions organised by IGU.

By sharing Posco Daewoo’s experience and know-how in resource development and LNG projects

The Ilshin Green Iris, the world’s first LNG-fuelled bulk carrier, entered service in 2018, built utilising a new cryogenic high-manganese steel developed by Posco Daewoo. Following over a decade of research the steel, designed specifically for the storage and transport of LNG, can withstand temperatures as low as -196°C among its other properties.

through IGU committees and conferences, the company believes that it will be able to contribute to the gas industry as well as to the IGU community.

For further information, visit: www.daewoo.com.

Vitol S.A.

For more than 50 years, Vitol has played an active role in distributing energy worldwide, efficiently and safely. Today, we move over 7 million barrel equivalents of crude and products around the globe every day. Vitol also handled 7.2 million metric tonnes of LNG and 70 bcm of piped natural gas throughout 2017. Our business is founded on long standing relationships with producers, refiners and industrial clients.

As an established LNG participant since 2005, Vitol’s LNG team possesses an in depth understanding of global trends in supply and demand. The range of carefully monitored projects worldwide, from multi-year supply deals to leading equity participations in key regasification projects, enables us to understand and anticipate market developments.

In addition to our active presence in spot and short-term markets across Asia, Europe, the Middle East and South America, Vitol has built a strong LNG portfolio supported by multiple long-term supply deals with producers including Angola LNG and Gazprom, which we leverage to underpin our long-term commitments to buyers such as Korea’s KOMIPO. Most recently concluded long-term deals include the 15-year sale and purchase agreement (from 2024) with Petronas to offtake 0.8 mtpa from LNG Canada and another 15-year deal (from 2018) with Cheniere to source 0.7 mtpa from Sabine Pass. We have also entered into a memorandum of understanding with Tellurian to source 1.5 mtpa from its upcoming Driftwood LNG terminal.

Our LNG business is uniquely integrated with our natural gas trading teams and their facilities in the US and Europe, enabling us to absorb LNG volumes in short durations by leveraging our flexibility on supply agreements, access to storage and connectivity to different markets. Some of Vitol’s key strengths in natural gas markets include physical gas storages in six European countries, a group of core clients including producers, industrials and local distribution companies in the US, and access to most major gas pipeline networks across the US.

Vitol is excited to become a member of IGU and looks forward to interacting actively with fellow members, to both deepen our understanding of the rapidly evolving global gas landscape and to proactively explore ways in which we could serve the needs of various market participants.

For further information, visit: www.vitol.com.

Built over the last 14 years, Vitol has a strong LNG portfolio which is uniquely integrated with its natural gas trading teams and its facilities.