Total world energy nov

NOVEMBER 2014

more than business

www.totalworldenergy.com

It’s all about rigs…

This month we look at the importance of the work of quality rigs in areas including the Upper Zakum field, the North Sea and the Timor Sea. We also learn more about the work that goes into constructing all parts of a modern rig in China, Poland and across the world…

Mitsubishi Hitachi Global power players

Agraferm Technologies Biogas – the fuel of the future?

VTT Vasiliko

Energy for the East Mediterranean

Eneco Luchterduinen A project for the community

Cable Technology Partner Technology Comes To Life SM

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It’s often easy to forget that there’s much more to renewable energy than wind and solar power. These are the pretty faces of the renewable energy industry; the ones that have proven themselves as viable energy sources and the ones that have the backing of many prominent players. But what about other sources? What about hydro power, what about biogas? While these are perhaps less popular than wind and solar, they certainly have the potential to provide huge contributions to the grid.

In the biogas sector there are many prominent players around the world including Agraferm Technologies based in Pfaffenhofen, Germany. This innovative organisation is run by a group of people with many years’ experience in biogas and the company is looking to grow internationally, spreading the word of quality biogas plants and how they can be extremely efficient and cost-effective when built and run correctly. We talk to two Directors from Agraferm about the history of the organisation that is set to grow in 2015.

We also feature the traditional energy industries, oil and gas, where we talk to VTTI about their new facility in Cyprus and also Mitsubishi Hitachi about development in Europe and their combined cycle gas turbines.

Interestingly, we hear from The Association of Dutch Suppliers in the Oil and Gas Industry and hear how the association and its members are pushing internationally proven Dutch services around the world aligning with one of the common themes of this month’s edition – global expansion.

If you or your company are expanding globally, setting no boundaries in operation, and continually finding new areas to work in, you should get in touch with us; we love to hear stories of business success, it’s what we’re all about! Find us online @TWEmagazine

Joe Forshaw editor@ecp-ltd.com

EDITOR Joe Forshaw SUB-EDITOR Harriet Pattison WRITERS Rosie DeWinter Colin Chinery Tim Hands Roland Douglas Christian Jordan STUDIO DIRECTOR Martyn Oakley DESIGNERS Harvey Tarlton Harry Wyer

RESEARCH DIRECTOR Chris Bolderstone MAGAZINE MANAGER Rick Liddiment PROJECT MANAGERS Ben Richell Kieran Shukri Jodie Rettie Hal Hutchison Ajuanne Payne SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Mark Leonard

ACCOUNTS Mike Molloy Jane Reeder MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman

2a Ardney Rise, Norwich, Norfolk, NR3 3QH, United Kingdom If you would like more information about ways in which Total World Energy can promote your business please call +44 1603 411568 or email | editor@ecp-ltd.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © East Coast Promotions Ltd 2014

PAGE 3

Contents EDITOR’S PAGE

3

NEWS

6

What is the potential of biogas?

All that’s happening in the energy industry

ENTREPRENEUR

10

INNOVATION

12

VTT VASILIKO

14

MIB ITALIANA

22

MHPS EUROPE

26

NATIONAL ENERGY

34

ZADCO

40

INPEX: ICHTHYS PROJECT

46

TRIYARDS

50

AGRAFERM TECHNOLOGIES

54

IRO ASSOCIATION

60

DE REGT MARINE CABLES

64

SMULDERS WIND TURBINE CONSTRUCTIONS

70

MEGCHEM

74

ENTREPOSE CONTRACTING

78

BOMESC OFFSHORE ENGINEERING COMPANY

82

ENECO LUCHTERDUINEN

86

ALUSHIP TECHNOLOGY

90

HYUNDAI HEAVY INDUSTRIES

94

DESTINATION DIRECTOR

98

Entrepreneur of the year

Solar powered speed

Europe’s link in the east mediterranean

A true Italian job

Continental power players

Powering more than T&T

National oil, National pride

Austrailian energy for Japan

From China to the world

Biogas: Future proof

Global networking

Able cables

Gathering Strength

Out of Africa

It’s in the pipeline

Offshore engineering, a Chinese success story

En-powering the community

Changing the industry with aluminum

Heavy work, all part of the job

If you can afford it, Europe’s luxury awaits

FUTURE POWER

Industry leading innovation from Sweden

PAGE 4 MAR 14

100

CONTENTS

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26

26

50

54

94 PAGE 5

# twenews Appointment of new Chairman at Shell The Board of Directors of Royal Dutch Shell has announced the appointment of Charles O Holliday as Chairman with effect from the conclusion of the 2015 Annual General Meeting, subject to his re-appointment as a Director of the Company by shareholders at the AGM. Mr Holliday will succeed Jorma Ollila who will step down from the Board with effect from the conclusion of the 2015 AGM having served as Chairman for nine years.

Chad Holliday was appointed

as a Non-executive Director of the Company with effect from September 2010, and is currently Chairman of the Corporate and Social Responsibility Committee and Member of the Remuneration Committee. He was Chief Executive Officer of DuPont from 1998 to 2009, and Chairman from 1999 to 2009. He is a member of the Board of Directors of Bank of America Corporation, having previously served as Chairman up until September 2014, and is also a Director of Deere & Company.

Commenting, Mr Ollila said: “I am delighted that the Board has appointed Chad Holliday to succeed me as Chairman. He has a distinguished track record as an international businessman and I am sure he is the right person to chair the Board going forward after the 2015 AGM.” Chad Holliday said: “I am honoured to be appointed Chairman of this great company, and I look forward to working with Ben van Beurden and the whole Board to deliver the strategy.”

Charles O Holliday

PAGE 6

NEWS

Expansion Project in Kazakhstan

Bechtel has been awarded a contract to provide engineering, procurement, and construction services to build four crude-oil storage tanks at the TengizChevroil oil production facility in Tengiz, Kazakhstan. The company also will modernize the fire and gas

experience working in Kazakhstan to deliver new tank storage capacity to the Tengiz facility on a short schedule,” said Jack Futcher, president of Bechtel’s Oil, Gas & Chemicals business unit. “We look forward to continuing our work

manifolds, a monitoring station, associated facilities, and supporting infrastructure.

Bechtel is the global leader in the oil and gas industry. The company has been supporting oil production in Kazakhstan since the 1990s.

detection systems across the entire crude tank farm. TengizChevroil is a joint venture of Chevron, ExxonMobil, KazMunayGas, and LukArco.

“The Bechtel team will apply extensive technical knowledge and more than 30 years’ worth of

with TengizChevroil and the people of Kazakhstan as they develop important energy resources.”

The project will add to the existing facility 500,000 barrels of tank storage, export pumps, interconnecting pipe, switching

Bechtel helped develop the Tengiz and Korolev oil fields, built several oil and gas facilities at Tengiz, and constructed artificial islands with associated port facilities in the Caspian Sea off the coast of Bautino.

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# twenews

© Rob Wilson - Shutterstock.com

Repsol hits pay in GoM’s Leon well Repsol has made a new discovery of “high quality” oil in the United States’ Gulf of Mexico.

The find was made 352 kilometres from the Louisiana coast in an ultra-deep water well named Leon, located in the Keathley Canyon 642 block.

Repsol is the operator of the discovering consortium. The well found more than 150 metres of net oil pay within a column of over 400 metres. The well was drilled in water 1,865 metres deep, and

PAGE 8

reached a total depth of 9,684 metres, making it one of the deepest wells operated by the company.

The company has a lot of experience in deep-water well drilling and is internationally recognised for its technological capacity with cutting-edge projects in hydrocarbon exploration and production such as the Kaleidoscope and Sherlock projects.

Repsol has a 60% participation

in the license, with Colombia’s Ecopetrol holding the remaining 40%. The US Gulf of Mexico is amongst the world’s most profitable and promising deep water plays.

Repsol holds 119 blocks in this prolific area together with a share in the Shenzi field, which boasts 16 wells in production connected to two platforms.

The resource potential being carried out by the current operator will lead to a development plan for the field in the near future.

NEWS

GDF SUEZ and BP Discover New Central North Sea Field GDF SUEZ E&P UK Ltd and BP last month announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f (licence P1588) and BP operated block 30/1c (licence P363) was flow tested at a maximum rate of 5,350 barrels of oil equivalent per day. The discovery, referred to as ‘Marconi’ by GDF SUEZ and ‘Vorlich’

by BP, is located in the Central North Sea. Ruud Zoon, Managing Director of GDF SUEZ E&P UK Ltd said: “This is an encouraging exploration discovery in a part of the Central North Sea that needs additional

volumes of hydrocarbons to open up development options for several stranded discoveries. The discovery is our third successful well this year and demonstrates a continuing commitment by GDF SUEZ to an active exploration and appraisal drilling programme on the UK Continental Shelf.”

Trevor Garlick, Regional President of BP North Sea said: “As BP marks its 50th year in the North Sea and as the industry looks to maximise economic recovery from the basin, increasing exploration activity and finding new ways to collaborate will be critical to realising remaining potential. This discovery is a great

example of both.”

The well was drilled by GDF SUEZ E&P UK Ltd as operator, with the Transocean Galaxy II jack-up rig under a joint well agreement between the two licence groups.

Business and Energy Minister Matthew Hancock said: “We are determined to have set the right fiscal and regulatory regimes to make sure we can get the maximum possible economic extraction of oil and gas from the North Sea. “This discovery shows exactly what can be achieved in the North Sea if companies work together to maximise the considerable potential of remaining oil and gas reserves.”

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Sustainable, energy efficient solutions

Editorial: Harriet Pattison

Starting at APC Group almost three decades ago, Mark Robinson has used his entrepreneurial flair to turn the company into a market leader providing sustainable technology solutions to help improve the energy efficiency of its customers. Earlier this year Robinson was awarded ‘Entrepreneur of the Year 2014’ at the New Energy and Cleantech Awards, a testament to his hard work and passion…

The definition of an entrepreneur is not always one who starts up a company but one who is also responsible for its continued success, growth and creativity. Mark Robinson joined the APC Technology Group almost three decades ago in 1985 as a sales engineer. By 1992, he had reached board level before becoming Managing Director in 2004.

Today, as CEO of APC, Robinson has led the company to terrific heights through new innovations and technological advancements in the energy field.

With more and more companies and businesses, both big and small, wanting to reduce their energy bills and use more sustainable energy solutions, APC is there to help and advise where money can be saved on energy and help in controlling

series of strategic acquisitions and by the creation of subsidiary companies.

However, Robinson soon realised that he couldn’t build a sustainable technology company on just one product so he created an all-compassing holistic offering to customers, a turn-key solution.

Offering cleaner technology and energy efficiency is now driven through Minimise, a wholly-owned subsidiary of APC which is broken down into Minimise Holdings, Minimise, Minimise Energy and Minimise Controls.

Robinson’s entrepreneurial flair began almost 30 years ago but it was in 2008 that he moved across to the cleantech

consumption.

Last year, one of APC’s biggest achievements came with signing a contract with Morrisons. “Until recently, Morrisons had been mainly doing lighting,” Robinson explained in a statement. “All credit to them, they saw the benefits they could gain by becoming more energy efficient and moved quickly to go into volume before any other chains.

“It’s great of us as it got us out of the blocks and got us a seat at the big table.

We’ve now proven that we can provide our product to scale.”

Earlier this year, Robinson cemented his position in the sustainable energy sector being crowned ‘Entrepreneur of the Year 2014’ at the New Energy

usage. This might be as simple a change as replacing lights with low energy bulbs.

The company’s emphasis has been on maintaining profitable growth, diversification and helping customers reduce business energy consumption.

APC has managed this through a

sector through the launch of Minimise.

The energy reduction specialists have enjoyed significant growth and recognition for the development and distribution of energy efficient solutions, helping customers to maximise their profitability whilst reducing energy

& Cleantech Awards. Now in its 7th year, the awards recognises companies responsible for the shaping of future green energy and cleantech industries.

Speaking after the event, Robinson said: “I am delighted to accept this award on behalf of all my colleagues at Minimise

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A FLAIR FOR ENTREPRENEURIALISM

ENTREPRENEUR

and within the APC Technology Group. It was a great honour just to be shortlisted in this category with representatives from companies that share our commitment to energy efficiency, innovation and sustainability.

“Winning this award further establishes our position as industry leaders, delivering energy savings to clients of all sizes and sectors through our complementary range of products and services.

“As sponsors of the Retail Company of the Year award, Minimise would like to congratulate John Lewis on their success in this category and commend all the shortlisted companies, including Morrisons, The Co-Operative Group and Sainsbury’s, on their energy saving achievements.”

companies operate.

“We will do all we can to support Minimise’s ongoing expansion plans, which will cement their position at the forefront of the energy efficiency sector.”

It is inevitable that fossil fuels will eventually run out so planning ahead and finding alternative energy resources is imperative. There is now a large market for sustainability with new technology advancements and innovative products being introduced on a regular and global basis for all energy markets. It is easier perhaps to bury our heads in the sand and ignore the inevitable but it seems that it is only when we look at how much we spend

is looking forward to further expansion for the company, increasing its footprint to bigger markets opening new offices in Miami and Toronto.

New acquisitions have also helped to place APC on the highly competitive energy pedestal. Acquiring Green Compliance plc has allowed APC to offer a water sustainability service with products including; rain and waste water harvesting, water consumption monitoring and management, leak detection and remediation and the management of water hygiene.

From switching to an energy efficient light bulb to improving the energy efficiency of an entire organisation, Mark Robinson has ensured a range of industries will benefit from the range

Adrienne Robins, Account Director at Quantum, said in a statement after the ceremony: “We are delighted that Mark’s success in expanding the Group and Minimise’s business operations and reach has been recognised by the new energy and cleantech industries in which the

on our energy bills each month that we feel motivated to seek alternative and more cost effective solutions. This is what APC, led by Mark Robinson, is hoping to achieve.

With exponential growth after the launch of Minimise in 2008, Robinson

of technologies developed to reduce energy consumption. Keeping up to date with technology advancements over the past 30 years, Robinson is showing how businesses can expand and grow successfully without increasing its carbon footprint

SUSTAINABLE EXPANSION

PAGE 11

Solar power and one of the world’s fastest motorcycles…

Editorial: Joe Forshaw

The Lightning Superbike is powered by electricity; it doesn’t use a trace of gasoline or petroleum at all. Last year it received many awards and accolades and we take a closer look at how solar power is being utilised to drive such a high-performance vehicle…

In August, Total World Energy looked at the airplane powered only by the sun, Solar Impulse. In October we looked at the boat powered only by the sun, the MS Tûranor PlanetSolar.

Back in 1996, Honda aired a TV promotion campaign about their plans for developing a solar powered car, and in 2013 a motorcycle powered only by electricity developed by solar panels became the fastest production

second oldest motor sports event in the USA, running since 1916, PPIHC is a 12.42 mile (19.99 kilometre) course that begins at 9,390 feet (2,862.07 meters) above sea-level and finishes at the 14,115 foot (4,302.25 meter) summit of the spectacular Pikes Peak –Americas Mountain. As the drivers climb toward the summit, the thin air slows reflexes and drains muscle strength in addition to robbing

category, they were faster than the closest world-class gas-powered bike by almost 21 seconds. The majority of the electric bike field posted times in the mid-12-minute range - Lightning Electric Superbike was more than two minutes faster.

Lightning Motorcycle was the fastest of the 82 motorcycle entered and beat all but the eight fastest cars at the PPIHC. Adding to the

motorcycle in the world. Clearly, solar power and its uses are coming to the forefront of the everyday energy mix.

In June last year, the Lightning Superbike team competed at the Pikes Peak International Hill Climb (PPIHC) in Colorado Springs. As the

internal combustion engines of up to 30% of the power they were capable of at the start line. Competitors and vehicles must be in top shape and condition simply to finish, let alone win.

Lightning didn’t just win the electric

achievement, the Lightning SuperBike was powered by clean, renewable solar energy.

The bike is a result of collaboration between California based Lightning Motorcycles and SMA America which manufactures solar inverters.

PAGE 12

INNOVATION

Lightning Motors Corp. has been involved in researching and manufacturing electric two wheeled transportations for more than six years.

The Lightning SuperBike was not the first electric bike to compete at the event but it was the first to have such an impact. It has paved the way for the Lightning LS-218, the latest offering from the pioneering company. Powered by a 380V 20 kwh battery pack and IPM liquid cooled 150kw+ 10,500 rpm electric motor, the LS-218 produces 200 hp and 168 ft•lbs of torque. Weighing just 495 lbs, the bike can reach 218 mph and the motor can reach 10,500 rpm.

To charge, it takes just 30 mins on a quick charger and 120 minutes on level two charger and a full charge will take the bike 160-180 miles at

inverter made by SMA America and Trina panels. “The merger of solar power and electric vehicles is exciting to witness and we are thrilled with the success of the impressive SuperBike,” said Henry Dziuba, president and general manager of SMA America after the PPIHC. “The win at Pikes Peak shows that superior, world-class performance can be achieved today with clean technologies.”

During the performance at the PPIHC, the bike was driven by Carlin Dunne who is now threetime consecutive overall motorcycle champion and King of the Mountain.

“We are incredibly gratified with the performance by Carlin,” said Richard Hatfield, founder and CEO of Lightning Motorcycles following success at the PPIHC. “The Lightning team worked around the clock to

believe this is a giant leap forward for public acceptance of clean, renewable energy-based transportation.”

Adding further clout to the bikes renewable energy offering is the regenerative braking system which helps achieve the impressive mileage from a single charge. The braking system is made up of Dual Brembo 320mm discs, Brembo radial-mount forged 4-piston calipers, two Brembo T-Drive 320mm Fully-Floating Rotors and two Brembo GP4-RX CNC Radial Calipers.

This fantastic vehicle is yet another example of exactly what can be achieved with today’s modern engineering ideas. We can power a boat and a plane that can travel all the way around the world using nothing but solar power. We can power cars and buses using electric motors and

highway speed.

But perhaps most importantly, the EnerDel battery pack can be charged through a specially adapted solar panel system. The bike is charged with solar power through a mobile charging station that features an

ensure that we provided the best possible bike for the race. We set this as a goal more than four years ago after our first North American roadracing event. Sunday, we achieved our goal. This accomplishment is a big step forward for Lightning, and we

now we can power the world’s fastest production motor cycle with solar technology; so how long will it be until all of our travel is 100% clean and 100% efficient? We’ll explore more innovative transportation solutions in the coming months…

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Development in the East Med from VTTI Editorial: Roland Douglas

In November 2014 the new €300m VTTV terminal project opened in Vasiliko, Cyprus. Its strategic location will be the first of its kind in the Eastern Mediterranean, connecting Europe and the Black Sea with markets in the Middle East and Asia. This is an important development for European oil and gas transit and VTT Vasiliko General Manager, George Papanastasiou talks to Total World Energy about the development of the project…

The movement of oil and gas in the Mediterranean is critical for the energy industries of many nations. Asian and eastern countries depend on efficient transportation to supply product in and out of their borders; the North African market remains important

transportation.

A tanker heading for the UK from Qatar will face a long and tricky journey of around 20,000 km if it has to head south around Africa and the Cape of Good Hope and up the Western African shipping lanes, not to mention

And now, to make things even more convenient, there is a new terminal in a strategic location on the island of Cyprus which will help to connect Europe and the Black Sea with markets in the Middle East and Asia.

The terminal is VTT Vasiliko

to European supply; European nations rely on the Med for vital imports and the handy links to the Red Sea and the Black Sea as well as Russia and the Middle East make the Mediterranean an international hub for oil and gas

the threat of piracy. But heading through the Arabian Sea and the Red Sea, into the Mediterranean will save time and money despite the obvious choke points at the Strait of Hormuz, Bab-el-Mandeb and the Suez Canal.

and is located close to the Port of Vasilikos, 50km south of the country’s capital, Nicosia.

Owned and operated by international storage group VTTI, the VTT Vasiliko terminal has a 543,000 m³ storage capacity, 28

PAGE 14

VTT VASILIKO LTD tanks, four jetties and a 17.5m maximum draft – and this is all in the first phase of construction.

Phase two (currently under evaluation) will see the terminal create an additional 13 tanks and an extra capacity of 305,000 m³.

VTTI is a fast-growing independent provider of energy storage worldwide. Founded in 2006 by the Vitol Group, MISC Berhad became co-owners in 2010. The company currently offers eight million cubic meters of combined storage capacity across five continents. This will rise to over 10 million in the near future as new projects come on line.

“It is strategically located in a region where oil terminals are not common.

VTTI have high expectations from this Terminal because of its location and the flexibility it can provide to its users”

General Manager for VTT Vasiliko, George Papanastasiou tells Total World Energy that fantastic progress has been made with construction of the terminal and first oil is expected this month.

“The EUR 300M oil storage terminal of VTT Vasiliko Ltd is almost complete and it is expected to receive the first oil in November 2014.

“VTT Vasiliko is VTTI’s latest investment developed from a green field site, which incorporates the latest standards and technology.

It is strategically located in a region where oil terminals are not common. VTTI have high

PAGE 15

you can rely on our experience

Serving the Cyprus ports since 1951

Ship Agency Services at VTTV Vassilikos, the Energy Hub of Cyprus.

The first Oil Storage Terminal in the Eastern Mediterranean, connecting Europe and the Black Sea with markets in the Middle East and Asia.

FONASBA QUALITY STANDARD

-Ship Agents at VTTV Vassilikos -Port Agents at all Cyprus Ports -STS Operations -Offshore Support Services -Oil & Gas Logistics -Crew Changes We place our services at your disposal.

Please contact us: Shoham (Cyprus) Ltd 77 Franklin Roosevelt Ave. 3011, Limassol,Cyprus tel.:+357-25-208700 fax:+357-25-568990 email:mail@shoham.com.cy web:www.shoham.com.cy

expectations from this Terminal because of its location and the flexibility it can provide to its users.

“The information on the first owner and transporter is commercially sensitive but the products will be jet fuel, diesel and possibly naphtha.”

A CHALLENGING PROJECT A project of this size is not an everyday occurrence for Cyprus.

The value of the VTT Vasiliko terminal is equal to 1.7 per cent of the country’s GDP and Papanastasiou says that a project on this scale has not come without challenges.

“There have been challenges in all phases and parts of the project.

However, the offshore marine jetty has been the most difficult part as the Cypriot Authorities were lacking knowledge to license what was proposed and the knowledge for its construction was very

PAGE 16

“It is strategically located in a region where oil terminals are not common.

VTTI have high expectations from this Terminal because of its location and the flexibility it can provide to its users”

limited locally.

“Securing the required permits and licenses was a slow process at the beginning as this is the first project of its kind in Cyprus and the authorities were lacking the knowledge. This had an impact on a late opening of the terminal.

Going forward, we believe that the VTTV project will serve as a case study for future energy related developments in Cyprus.”

In March 2012, a deal was signed with leading international building, civil and electromechanical engineering contractor, the J&P Group for construction of the terminal. J&P General Manager, Efthyvoulos Lacovides said at the time: “J&P, with its experience in projects of similar complexity around the world, will begin the project immediately and will complete it within the deadline of the agreement, the first phase in 24

VTT VASILIKO LTD months and the second in 26.5 months.”

Papanastasiou says that the relationship between J&P and VTT Vasiliko has seen positive results.

“A three year relationship characterised by constructive work, exchange of knowledge, share of experience and close cooperation was marked with the delivery of a ‘fit for purpose’ oil terminal in the East Med at the end of Oct 2014,” he says.

And topping off a project which has been widely regarded as a success, VTT Vasiliko has received all of the HSE (Health, Safety and Environmental) and EIA (Environmental Impact Assessment) certificates that are required to operate such a facility.

“The VTTV terminal meets the latest HSE standards of the oil storage industry. Furthermore the requirements of an EIA which was carried out, have been exceeded by the company,” explains Papanastasiou.

and potentially export following recent discoveries of natural gas and other hydrocarbon resources.

Because of the global interest in the region, VTT Vasiliko has designed its storage tanks to meet the needs of potential customers.

“The decision was made on the profile of the commercial activities of potential users of the Terminal,” says Papanastasiou. The tanks are a mix of mild steel, mild steel coated and mild steel insulated in design. These can be used to hold gasoline, jet fuel, kerosene, naphtha, gasoil, diesel, fuel oil and petrochemicals.

One of the key rationale behind the development of the terminal is the strategic location that Cyprus offers; perfect for moving fuel oil from the Black Sea to the East, ideal for moving Middle Distillates from the East to the West, and excellent for moving gasoline from Europe to the East Med and the Red Sea. “We expect our Terminal to enhance the supply chains of players moving products in all these directions but mostly those that break bulk in the East Med region. The deep sea marine facilities the VTTV terminal offers

BUSINESS IN THE EAST MED According to the US Energy Information Administration (eia), the eastern Mediterranean region, usually defined as Cyprus, Israel, Jordan, Lebanon, Syria, and the Palestinian Territories, is currently undergoing changes to its energy landscape. With expected economic growth, and the population of the region forecast to grow from 45.3 million in 2010 to between 58 and 62 million in 2030, energy demand should increase noticeably over the next two decades. This, along with growing export opportunities, means that the region will receive more and more tankers of bigger capacity and the likes of Eni, Kogas and Total have all showed intentions to explore further in Cypriot water

PAGE 17

and the related flexibilities is exactly what oil traders were missing in this region. With the development of mega refineries in the Middle East and the closure of refineries in Europe, it is something we expect that will change the balances and we will see more products moving from the Arab Gulf/Red Sea towards Europe in the future,” Papanastasiou says.

SLICK IN CYPRUS Apart from the large initial outlay from VTTI into Cyprus for this project, there are many more benefits set to be realised as a result of the new terminal.

The construction of the terminal is estimated to generate revenues of €18m per year from port fees, and the country is expected to receive further proceeds from taxes paid by companies to

“The VTT Vasiliko investment as the first onshore infrastructure energy project has showed the direction and set the pace. It will serve as an example for investors looking for opportunities around the globe, to see Cyprus as a location to put their money in energy related projects”

transport their products through the terminal.

Local people will also benefit as Papanastasiou explains: “Local resource is the direction from VTTI. Cyprus offers highly educated human resources which only lacks the experience due to the specialised knowledge that is required in this case and the small size of the market. Only when a certain skill or competency is not possible to develop locally, VTT Vasiliko will consider importing resources and this will be on a temporary basis.”

And with a company like VTTI investing in Cyprus, the General Manager suggests that the country could see more investment from energy companies in the future.

“The VTT Vasiliko investment as the first onshore infrastructure energy project has showed the

Joannou & Paraskevaides Group (J&P) is an international contracting company, who undertakes a wide spectrum of construction work in four continents for more than 70 years. J&P has been successfully involved in the Oil & Gas Industry over the last 40 years. J&P has extensive experience in the construction on EPC basis of oil gathering and processing stations, export terminals and tank farms, Gas-Oil Separation Plants, cross country pipelines, Gas Plants, Oil Refineries and Petrochemical Plants and other associated works in most countries in the Middle East, North Africa and Europe. J&P is proud to include amongst its Clients, most major international Oil & Gas Companies and Operators. Most recent project is the Vasiliko Terminal in Cyprus, a 600,000 m3 capacity multi-products tank farm comprising of 36 no. tanks and related Terminal Utilities, and ship loading facilities capable to receive simultaneously four tanker vessels of max. 160,000 dwt capacity through a 1500 m long marine jetty and mooring/loading platforms.

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LABUAN SHIPYARD

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direction and set the pace. It will serve as an example for investors looking for opportunities around the globe, to see Cyprus as a location to put their money in energy related projects,” he says.

And of course, it’s not just international traders, oil companies and employees that will benefit from the development of the terminal. The local economy will receive a needed boost with a focus on the communities surrounding the project, by sponsoring and supporting educational and athletic centres, small local businesses and families in need.

The Cypriot energy market will also receive a boost as the current storage facilities at Larnaca are aged and do not provide efficient logistics for local marketers and are still slated to be relocated for Larnaca town development.

Currently, some of the excess Cypriot stocks are held in Greece

and Malta at a cost of €17 million per year.

“We estimate that the terminal will be fully complete and 100% operational to maximum capacity in a year from being operational” Of course, with a project of this size, in an area that is environmentally sensitive and surrounded by communities and water, there has been a requirement for certain environmental standards to be met and Papanastasiou is proud of what has been achieved so far.

“The ‘green’ venture is in our philosophy as a group and our high operating standards and experience give us the confidence that the VTT Vasiliko terminal will create no harm to people or the environment throughout the years of operation,” he says.

And there is more to come from this fantastic project. Phase 2, set to create further capacity and job opportunities is currently being reviewed by the relevant parties and when this is completed, the terminal will reach full completion and Papanastasiou expects this to be in around one year from now.

“We estimate that the terminal will be fully complete and 100% operational to maximum capacity in a year from being operational and this is based on the interest we see from oil companies and trading organisations. A change of the current market environment will expedite things, of course,” he concludes

BIOTEK is a Greek company operating in the oil and gas industry since 1987. It is experienced in a vast variety of projects, such as refineries, power plants, fuel tanks, gas pipelines, chemical industries and electromechanical activities for industrial facilities.

In 2014 BIOTEK was subcontracted a Jetty project in Vasiliko, Cyprus. The Jetty consisted of a steel access ramp for access to the vehicles, one main Trestle 1,5 km long pre-fabricated and pre-assembled in Modules for in-site installation on piles, one main Platform and 4 Berths for fuel loading – unloading. Each Module of the steel structure, approximately 160 tons weight, has all the process and utility piping assembled together.

The fabrication of the steel modules performed in Greece and transported in 3 separated pieces to Limassol port, where the assembly of each of the 47 modules took place with all the piping, secondary structures and scaffolds on it. For site installation, the modules were transported with a barge and erected with a floating crane to Vasiliko.

The second step, after modules erection, was piping and steel interconnecting, platforms and equipment installation.

In addition to Jetty, BIOTEK was also awarded with the piping interconnecting inside the Oil Terminal.

Both projects performed in parallel with absolute success, despite the short time period for completion and severe weather conditions, especially on the sea activities.

PAGE 20

VTT VASILIKO LTD

BIOTEK is an experienced construction company in the energy ďŹ eld and mainly in oilgas industry.

After applying an effective style of integrated management based on mutual trust with clients, BIOTEK achieved to augment its status by successfully delivering projects.

In due respect to the latest technical innovations and practices conducted through a highly skilled personnel, BIOTEK always ensures the highest quality performance standards.

Fields of activity consist of energy, oil, gas and petrochemical construction projects competitively delivering civil and steel structures, piping prefabrication and erection, mechanical, electrical, instrumentation, sandblasting, insulation and painting works.

BIOTEK Agios Athanasios, Thessaloniki, W.B. 325, Ionia, Greece, P.C: 57008

Tel: +302310723670 Fax: +302310723680 Email: info@biotek.gr Website: www.biotek.gr PAGE 21

At the cutting edge of offshore safety Editorial: Colin Chinery

Courtesy of Hoegh LNG

The imprint of MIB Italiana, leader in customised connections and safety equipment for floating production platforms and tankeroffloading systems, can be seen in the world’s harshest environments.

And in an increasingly demanding market and after almost 50 years in operation, innovation, excellence, and highly-focussed client relationships are ensuring MIB stays out in front.

Innovate or stagnate. MIB Italiana has been a pioneer in the energy sector for close on 50 years, but product development is both continuous and instinctive for this foremost global name in onshore and offshore connectors and

at the sharp end of the safety and environmental protection sector needs to maintain a very pro-active approach to the improvement or development of new products.

“If we do not invest in R&D then

equipment for floating production platforms and tanker-offloading systems; its footprint prominent in some of the world’s harshest environments.

Valves and double valves with emergency release systems, and quick

emergency release systems.

“The requirements of our clients’ are increasing and becoming more stringent and demanding,” says Director, Daciano Colbachini. “And to keep their position in an ever increasingly competitive marketplace, any company involved

someone out there surely will,” says Colbachini.

connectors and disconnectors for gas and liquids at low, ambient and cryogenic temperatures, are among the advanced products produced for the LNG, LPG and petrochemical industries at its plant at Casalserugo, Padova, in northern Italy.

PAGE 22

GLOBAL FOOTPRINT MIB is a leader in the research, development, manufacture and supply of customised connections and safety

MIB ITALIANA Global programmes involving MIB are numerous, including LNG jetty-based terminals in Australia, ExxonMobil floating storage off-loading Banyu Urip project in East Java, Indonesia, the Helix Producer the first FSU in the Gulf of Mexico, and floating production, storage and offloading units in the Timor Sea. The formation in 1966 of MIB Italiana – now part of the diversified IVG Colbachini Group - coincided with the significant increase in the use of oil and liquefied gases, and the expansion of major oil terminals, process plants and refineries in the Middle East, North Africa and elsewhere.

“The growing demand of energy came hand in hand with a more focused view of safety and the protection of such huge investments, employees and the

environment,” says Colbachini.

“And MIB, through its founder Giorgio Bormioli, recognised and seized the opportunities created, and the company rapidly became a world leader supplier of customised connectors, anti-pollution devices and safety solutions for the oil and gas industries.”

Since the early 1970s the company’s success has been based on the supplies of critical safety equipment for the liquefied gas industry (-196° C) for onshore terminals. And the results reached, “have allowed MIB to be one of the market leaders in this field.”

With an expertise acquired with onshore jetty projects - both for ambient, low and cryogenic temperature – the transition to the offshore arena was natural and seamless, with MIB providing

sector-specific safety products for installations where the environmental conditions are extremely demanding.

TOUGH TALENT And MIB – active in the North Sea, off Eastern Canada and the deep waters of the Gulf of Mexico - likes it tough.

“These are just examples of our effective presence where the environmental conditions are extremely adverse, and where we see an ever increasing demand for our products. In fact you could say, ‘the more hostile the environment, the better for MIB’.

“With a good product mix, and free from reliance on a specific sector, continuing expansion will be driven largely by a strong client and marketoriented approach,” says Colbachini.

PAGE 23

BRIGHT GREEN

“We are currently focusing our attention to find tailor-made solutions for our clients, and promoting MIB as a turnkey supplier of offshore fluid handling equipment.

“This involves not only the supply of our traditional portfolio of MIB connectors and safety release systems, but also the provision of the entire scope of offshore-related products such as hawser reels, mooring hawsers, quick release mooring hooks, as well as connector and valving solutions, hydraulics power and control panels and all the many interfaces within the ‘package’.

“We are also interfacing on several projects with our sister company, Bassi Offshore - also part of the IVG group with its range of OCIMF standard marine hoses, both floating and submarine.

PAGE 24

“Our objective is to offer our clients, whether end users, contractors or shipyards, a complete customised solution, so eliminating the historical problems suffered through interfacing, split warranties, coordination and project management.

“We take these issues away, take the responsibility for the specific work scope, and deliver a fully integrated package.”

With almost every project unique, and new features and designs continually on stream, R&D comes naturally to MIB, Colbachini says.

Over recent years MIB has launched a range of solutions for the offshore sector, including a new generation marine break away in response to industry demands for maximised environmental protection of the oceans.

Another innovation has been the MIBflex cardanic ball joint for the transfer of low, medium and high pressure fluids, and allowing for leak free angular displacement of connecting components.

“Our business is primarily safety equipment, involving not only the safety of installations, vessels and personnel, but most importantly the environment.

“Many of our products are purposeprovided to avoid spillages of oil and petrochemicals, or the release into the environment of harmful or dangerous gases. And whether in business or in one’s personal life, the push for our environment is a crucial issue.

“If my business can help in any way to achieve the objectives needed for our planet to survive, then we shall do so in the best possible way. In fact, ‘The Greener the Better’ for MIB,” says Colbachini.

Unsurprisingly in a company with so strong a client focus, after sales support with a UK presence in Coventry - is a key element. “I regard our excellent rapport and on-going relationships with our customers as part of ‘the deal’.

“The after sales business is really important for us and it’s part of the company pride to give an extensive support of its products worldwide through a team of highly skilled and experienced personnel.

“We provide all the necessary installation assistance to our equipment, inspection and maintenance support, working shoulder to shoulder with our customers.

“MIB’s dedicated team focuses on providing quality engineered products, a clear and concise understanding of our customers’ needs, and the provision of a fully comprehensive service from project inception to long term support.

“Complete client satisfaction is not only our target, but I would like to think also our trade mark,” says Colbachini.

Quality is paramount for MIB, says the Director: “We are certified ISO 9001:2008 and being suppliers of crucial safety system that must function effectively in an emergency, we recognise there is no room for any compromises in quality.”

After almost half a century of leadership, what has been the key to the

MIB ITALIANA company’s success? “A dedicated team focused on providing quality engineered products, having a clear and concise understanding of our customers’ needs ,and providing a fully comprehensive service, from project inception to long term after-sales product support,” says.

Colbachini Reports showing that Chinese shipyards are becoming more skilled as well as cheaper than competitors in Europe, the Middle East and South Korea, leaves Colbachini unphazed.

“Our marketplace is clearly split into two distinct factions; those who purely buy on price and those who still recognise the technical and quality levels of experienced vendors.

“Certainly the tendancy to look only at the bottom line is playing into the hands of the Chinese, a problem in any industry not only oil and gas.

ONLY OPPORTUNITIES

“We provide all the necessary installation assistance to our equipment, inspection and maintenance support, working shoulder to shoulder with our customers”

“But there is clear evidence that the old attitude towards Chinese manufactured goods is being eroded, and it cannot be disputed that their skills are growing at a very quick rate. You can see evidence of this in the way the Korean shipyards are suffering at the moment.

“But the Chinese have still much to learn, and hopefully will not be such a big threat to us in the foreseeable future - assuming we can remain positive and not let such issues cloud our judgements.

“My approach is to continue to steer MIB towards its traditional approach; providing clients with solutions based on nearly 50 years of experience and a very successful track record.

“This Chinese challenge is certainly interesting. But where others find difficulties, MIB Italiana only sees opportunities,” Colbachini concludes

PAGE 25

Mergers, investments and developments for the next big player in European thermal power generation

Editorial: Christian Jordan

MHPS Europe offers a unique and highly specialised portfolio of products and services to clients in Europe, Middle East and Africa. Commercial Director, Shin Gomi tells Total World Energy more about the development of this power player and its targets for the future…

After its official launch in February this year, Mitsubishi Hitachi Power Systems (MHPS) Europe has set itself the target of becoming the number one in the thermal power generation systems market, where

Africa Head of Sales and Business Development, David Milner told us: “We and all the partners on site are working towards getting the first unit at Medupi online by the end of the year and that is

steam turbines and boilers to Integrated Gasification Combined Cycle (IGCC) products etc, and therefore the company decided it needed to be able to take all of these products to the market in South

significant growth in demand is expected globally.

Back in August, we looked at the progress MHPS Africa had made with two huge coal-fired power stations, Medupi and Kusile, in South Africa.

Mitsubishi Hitachi Power Systems

the number one goal at the moment.

“Now that we have such a wonderful product portfolio, it’s completely changed the outlook of the organisation. Instead of just having one product which was largely boilers, we now have a complete set of technologies from gas turbines,

Africa as well as the rest of sub-Saharan Africa so we have established, and we are busy expanding, our business development activities.”

This month we look at the European arm of the operation and talk to Commercial Director, Shin Gomi to find

PAGE 26

MHPS EUROPE out how the company plans to achieve its aim in the coming years.

“The reason we put the two businesses together was to be more competitive. Our main competitors include General Electric, Siemens and Alstom and from a volume point of view, with one company as Mitsubishi Heavy Industries and one company as Hitachi, the volumes were not big enough to compete therefore the decision was taken to merge these two Japanese companies to compete on a global scale,” explains Gomi.

“Mitsubishi Heavy Industries holds 65% of the MHPS and Hitachi holds the remaining 35%. What we did in February this year was to take out the fossil power generation businesses from each company and moved them into one organisation. Basically, our company is focussed on fossil power or what we call thermal power generation systems.

Our company is now dedicated to supply and support of anything to do with thermal power generation systems.

We manufacture components and equipment, we undertake EPC contracts, we provide maintenance and services for equipment that we have supplied and we also service equipment not manufactured by us, in existing power stations.

“We are now global; we have operations in the western hemisphere, MHPS America, which takes care of all the requirements in North and South America; in Asia we have multiple companies in China, Singapore, Thailand, Indonesia; we have operations in Australia and India; we have operations in the Middle East in Abu Dhabi and Saudi Arabia, and we now have MHPS Europe. Apart from the Japanese operations, MHPS Europe is probably the second largest operation behind MHPS America,” he says.

And in South Africa, the company’s work at Medupi and Kusile is demonstrative of the scale of the projects that this organisation is involved with.

“We are involved in some of the largest construction projects in the southern Hemisphere currently at these two sites,” says Milner.

“The energy produced by a single unit at Medupi and Kusile would power 80 high-speed German trains simultaneously and there’s six units going in at each so at full capacity the power produced is significant,” he adds.

A UNITED ORGANISATION Often when big companies merge, success is not as easy to come by as

the organisations planned. Historical trends show that roughly two thirds of big mergers will disappoint on their own terms, which means they will lose value on the stock market. The motivations that drive mergers can be flawed and efficiencies from economies of scale may prove elusive. In many cases, the problems associated with trying to make merged companies work are all too concrete. But for MHPS Europe, the fit between the two organisations has been pleasing from the very beginning.

“The effect of the merger has been very good,” states Gomi. “We already have a strong market presence; people were aware of both Mitsubishi and Hitachi and they are now seeing a more comprehensive product line and more comprehensive capabilities and services offered. Since the merger, we have received a lot of good feedback from the customers. Internally, there wasn’t too much difficulty merging and integrating; we were very united from day one.

“Powergen Europe in June was the first event that MHPS Europe jointly participated in and this was a great team effort, presenting as one company and promoting the multiple products that we now offer. I would say of the merger; so far so good.”

PAGE 27

Before the merging of these two giants in the energy market, the companies were direct competitors but each with a smaller product range compared to that of the global industry leaders. “We were competitors in the past, we were in the same industries but there were not many opportunities to work together,” says Gomi.

Today, in Europe and around the world, MHPS is one company operating with

office was the headquarters of Hitachi and London was the headquarters of Mitsubishi Heavy Industries before the merger. We are in the middle of the integration right now but these two offices are in charge of the Europe, Middle East and Africa markets,” says Gomi.

When it comes to customer service, MHPS Europe is second to none in

“One of the key messages from Mr Nishizawa surrounds maintenance and services business. He believes that for us to be the number one global player, we need to achieve customer satisfaction and to do that we need to maximise service and maintenance after equipment has been delivered,” says Gomi.

This is why, in Europe, MHPS invested in two companies that offer top-ofthe-range service capabilities allowing for manufacture, refurbishment and modification without the need to transport parts back to Japan.

“In Europe, we acquired a company called Maintenance Partners in Belgium and ATLA Turbine Services in Italy. These two investments were done before the merger with Hitachi. At the same time, Hitachi had already developed strong local presence in Germany.

“The aim here is to localise service capabilities and expand power generation service support for the client who owns MHPS components and also those who need support on other products from a non-OEM,” says Gomi.

“With Maintenance Partners, we have one huge rotor shop in Antwerp supporting both the power generation industry and also oil & gas industries and with ATLA, we also have a state-of-theart component repair and manufacturing shop in Italy so we do not have to ship components back to Japan. This integration has now been completed and we are able to support European customers locally together with Germany operations. Most of the people employed here are European meaning that the whole service, organisationally and infrastructurally, is localised.

“With ATLA in Torino, we have invested in new factories to digest more

one workforce, one product portfolio and one single vision.

The European operation is headquartered from two areas and looks after three large regional markets. “We have two headquarters; one in Germany and one in London. The German

its desire to be hands on and locally available to customers, quickly solving any problems that may arise at minimal cost to the customer and to the customer’s customers. This comes right from the top of the organisation and President and CEO, Takato Nishizawa.

component repair and manufacture for high-tech gas turbine hot gas path parts.

With Maintenance Partners in Antwerp, we have expanded the 9000m² facilities with an additional 4000m² rotor repair facility to be able to handle the large frame gas turbines and steam turbines

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PAGE 28

in partnership with

In partnership with in partnership with

LOCALISATION

MHPS EUROPE that we supply here locally. With those two facilities and our service operation in Europe, our infrastructure to support rotating equipment has been fully developed.

“Customers have appreciated this investment. Previously, if there was repair required or failure with a product, we would have to ship components to Japan for refurbishment or replacement and with power generation customers, losing power for one day is a huge, huge loss and impacts on the wider community.

Lost generation time has to be minimised as much as possible and that is why people appreciate our investments into local service capabilities,” he adds.

POWERFUL PRODUCT PORTFOLIO As a result of the merger of Mitsubishi Heavy Industries and Hitachi, the MHPS Europe business now has a vast range of innovative and proven products.

With worldwide experience that has

allowed for on-going research and development, the company’s product range is respected globally, especially for the J-Series gas turbines that have been designed to achieve higher efficiency and increased power output. MHPS completed the development of the worlds most advanced J-Series gas turbine with an inlet temperature of 1,600 ºC with our own technologies. The significant 1,600ºC turbine inlet temperature was achieved in February 2011; it is 100ºC higher than the current temperature of 1,500ºC featured in G-Series gas turbines. Since the launch of the J-Series, 16 units of the M501J have been sold in Japan and South Korea. Two units of the M701J have been sold, both in Japan.

This product range includes all components required for thermal power generation systems. Three of the most popular products, present in energy sectors around the world, are boilers, steam and gas turbines. In addition to this, MHPS has a strong global presence

in providing the EPC contract with many supply records in EMEA regions as well.

“Gas turbines and steam turbines are amongst the most popular products. The difference between the two is the way they rotate the turbine. Once you have the rotation, you connect the turbine to the generator so the generator can produce electricity,” says Gomi.

“There are two major products in the market, conventional power plant and combined cycle power plant.

Conventional power plant is like what we are using in South Africa; you burn coal or oil or any type of fuel in a boiler to produce steam and the steam is used to rotate the turbine.

“With combined cycle power plant, the technology is a little more advanced. You have a gas turbine with a compressor section and a turbine section. The compressor section takes air and compresses it and then it is mixed with natural gas or other types of fuel. You then ignite the gas and there is a large

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PAGE 29

the Middle East or Africa, then we can relocate the combine cycle power plants to places where they can run. This is a unique offering that we are developing.”

In South Africa, the power stations that MHPS is working on are coal fired but Milner tells us that there is a growing focus on gas.

“Right now at Medupi and Kusile, we are installing boilers but going forward the product range will be more diverse. There is a push within Southern Africa towards gas and we have a lot of good products for that market. It’s a market that we are addressing; we are active in Mozambique, Tanzania and in Namibia on the Kudu Project,” he says.

CURRENT FOCUS

reaction. The energy from the reaction is used to power the turbine.

This requires high pressure, high temperature and the material we use for coating and cooling is very sensitive and very high-tech. After you run the gas turbine, there is exhaust gas which is still hot and we used the exhaust gas in a boiler to create more steam and turn a steam turbine and that is why it’s called a combined cycle. Gas and steam turbines together in one power plant optimise efficiency,” he explains.

But selling combined cycle power plant is no easy feat, especially with the continual rise of renewable energy sources that do not require large-scale, industrial turbines (Renewable energy sources accounted for an 11.0 % share of the EU-28’s gross inland energy

Also, the coal price has been fluctuating and is lower now so there are more coal power plants running. This has resulted in lower demand for combined cycle power plant equipment but they are still running. As they run, there is always a maintenance requirement so we have to be there.

Gas turbines are very sensitive and we have to undertake periodical inspections and because of the high temperatures that the equipment is exposed to, repair or replacement is often required,” says Gomi.

“From a service perspective, when demand for equipment is lower we focus on our maintenance capabilities and also our abilities to service other equipment that is not manufactured by us.”

Interestingly, when the business does experience lulls in demand for products in European markets, it has developed a

consumption in 2012 according to the EU Commission). After all, how many power plants does one region need at a certain time?

“In Europe right now, there is a lot of renewable energy so demand for power from power stations has fallen slightly.

strategy enabling the movement of power plant equipment to other parts of the world where demand is high, as Gomi explains: “We have been aggressively creating opportunities to relocate power stations. If power plants are not running in Europe but there is high demand in

Maybe they need flexibility for their solutions; they need to react more quickly to power demand – we have developed a flexible menu to provide customers with all they could require.

“With non-MHPS customers, we receive requests regularly for services

PAGE 30

Since the formation of MHPS Europe, the organisation has had a baptism of fire, not stopping to admire itself but quickly building a pipeline to add to the work that was already in place before the merger.

In just under a year, the company has managed to secure business with major customers that operate as leaders in their chosen industry.

“We are working on multiple projects right now. Day to day we support our customers,” says Gomi and he adds that the list of services provided by MHPS in Europe are categorised into four main sections; existing customers, non-MHPS customers, relocation services and operation services.

“With existing customers that are up and running, we provide longterm maintenance and service and sometimes they require modifications or upgrades. Maybe they need efficiency improvements or output improvements and we can present solutions for this.

MHPS EUROPE

Specializing in the Fabrication and Erection of Structural Steel, Process Piping, Platework, Mechanical Installation (SMPP), Steel Bulk Storage Tanks, Hydrocarbon Storage and Handling Terminals, Pressure Vessels, Civil work, Electrical and Instrumentation, Engineering Procurement and Construction (EPC) Projects.

We concentrate on the completion of projects in various industries, where we have built up a substantial client base, including:

SUGAR MILLING MINING, MINERAL AND METALS ELECTRICITY GENERATION WATER TREATMENT SERVICES CEMENT PROCESS PLANT PETROCHEMICAL PAPER AND PULP MILLING OIL AND GAS          

5 Jan Street, Rocky Drift, White River, 1240, Mpumalanga Republic of South Africa Tel: +27 (0)13 758 1015 Fax: +27 (0)13 758 1050 E: info@steval.co.za

www.steval.co.za

PAGE 31

even though the customer does not own MHPS equipment. We can provide services as a non-OEM and we develop quality ideas on how to meet the needs of these customer across Europe, Middle East and Africa.

“With relocation, we look for a customer who is in need of power and we look for customers who are struggling to make full use of their product because of low demand for power.

“Lastly, we don’t only provide maintenance, we also offer operation of power stations and we are proactively promoting these services right now.

“We have a team servicing all of these sectors daily,” he says.

Operation of power stations is an attractive option for potential customers, often resulting in less recruitment and

power plant in Turkey’s Kırklareli province with partner, Kırklareligaz Enerji Üretim Sanayi ve Ticaret Anonim Sirketi.

An example of MHPS Europe’s service capability is demonstrated by a deal signed in February with ScottishPower to provide long-term service to a natural gas-fired gas turbine combined cycle power generation plant at the company’s Damhead Creek Power Station. Based on the 12-year, long-term service agreement MHPS will provide maintenance, management, parts supply and remote monitoring services for the gas turbines.

Away from gas and steam turbines, MHPS Europe announced in September that it would supply environmental equipment to ENEA Wytwarzanie S.A., a power producer in Poland, for two sets

are scheduled to go into operation at Unit 1 in late 2015 and at Unit 2 in May 2016.

training requirements, cost savings and an overall more integrated approach to the supply chain.

Earlier this year, the company signed an agreement with Turkish organisation, Üründal Group, to build and operate a 520 MW natural gas combined cycle

of selective catalytic reduction (SCR) type deNOx system for installation at Units 1 and 2 of the company’s coal-fired power station in Kozienice. These highperformance systems reduce emissions of NOx (nitrogen oxides), a cause of air pollution, by more than 80 per cent. They

product so we are on the right track to become the number one in the market.

“Before 2006, the service resources for Mitsubishi we had in Europe was less than 10 people. Now, we have over 600 servicing this region and we have made significant investments into resources.”

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A MITSUBISHI MAN Since the formation of MHPS Europe following the merger, the company has been understandably ambitious. When asked if he believes that the organisation has made progress towards its goal of becoming the number one in the thermal power generation systems market, Gomi says that much progress has been made.

“I believe we are getting close. Our competitors have a very strong presence in the market. But five or six years ago Mitsubishi had nothing here and we have invested to increase our presence. There are lots of opportunities that we never had a chance to obtain in the past but now we can put together a competitive

MHPS EUROPE The commercial director has been a Mitsubishi man for most of his career, starting in Japan and moving around the world helping to develop the business.

“I come from the Mitsubishi Heavy Industries side and I have been part of the service business all of my career.

Originally, I worked in the Mitsubishi Heavy Industries headquarters in Yokohama for four years and then I moved to the USA for five years to support establishment of the local service company, Mitsubishi Power Systems America. We built the service centre with manufacturing shop, repair shop and all of the field service organisation and remote monitoring centre with the strong leadership help of the key executive management that we hired locally. After that, I went back to Japan for four years helping to expand the localisation of services abroad. We worked to expand service capabilities in the USA through additional investment, in Europe we

invested in localized operations together with the acquisition of Maintenance Partners and ATLA. In 2011, I moved to London as Commercial Director for Power Generation Services in Europe, Middle East and Africa and also helped integrate Maintenance Partners and ATLA,” he says.

Importantly, Gomi is still very happy in his role and after all the investments, developments, acquisitions and mergers he says that the company has a clear strategy which is effectively communicated from the very top.

“One of the unique things about our company is that it is very open and very flexible. We have Mr Hanasawa, the CEO here in London and Mr Kiechl, the CEO in Germany and Mr Nishizawa, the President and CEO of MHPS and they meet frequently, sharing information openly and that is very helpful for us to understand the business strategy and direction. It makes sense right now as we

are a newly integrated company and we all need to change and move in the same direction. The communication that they do at executive level and the involvement of the executives at each local level is amazing and very unique. We are very encouraged that they look at us in this way and we will always support them coming here.”

With such a vast market place, such an innovative product range, such a fantastic workforce and a growing global reputation, it seems that it will not take too long for MHPS Europe to reach its goal and there certainly will not be any standing still; the focus is always on the future.

“The company is motivated to grow in Europe from a services point of view by touching customers, listening to customers and understanding customers and this information is very important for new product development in the future – it’s motivating and a lot of fun,” Gomi concludes

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The future of energy

Editorial: Harriet Pattison

With the mandate to ‘develop and manage suitable infrastructure, in order to support, facilitate and promote the various activities relevant to the natural gas-based energy sector’. National Energy has helped to promote Trinidad and Tobago’s energy brand on a global scale for over 30 years. The Company was re-branded in 2013, and is now looking to further develop a sustainable energy sector as well as work with other agencies to export the country’s expertise to regional and international energy sector players, with particular focus on emerging economies.

Trinidad and Tobago is among the richest countries in the Caribbean and with a strong, industrialised economy, it has secured a rich

incorporated by the Government of the Republic of Trinidad and Tobago in 1979. The Company celebrated its 35th anniversary on 12th

investors while working towards becoming a global leader in the development of sustainable energy based industries. This included the

heritage in the natural gas, oil and petrochemical industries.

The Coordinating Task Force initially led the way in monetising the country’s natural gas resources, subsequently leading to the creation of National Energy, which was

September this year.

construction and operation of the early petrochemical plants, ports and marine infrastructure, which serviced all plants at the Point Lisas Industrial Estate throughout the 1980’s. These activities continue today.

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A DEDICATED SERVICE Providing quality and dedicated services in the area of natural gas based development, National Energy sought to attract foreign

NATIONAL ENERGY (CORPORATION OF TRINIDAD AND TOBAGO) National Energy’s President, Dr Vernon Paltoo, explains: “Over the years we went through a lot of changes but in a nutshell, today we maintain the same mandate in terms of establishing new industries within the energy sector. We have a wider portfolio today since our business also involves developing renewable and alternative energy projects, as well as other aspects of the energy value chain.”

Dr Paltoo joined National Energy ten years ago having been involved in the industrial development and academic industry for over 20 years. Joining as a Team Leader for Business Development, Dr Paltoo gained experience through all sections of the Company before being appointed President in January 2013.

“Since then,” he explains, “we

have re-branded the Company to position it for the ever changing and future markets. I have systemically tried to change the image and focus of the Company and concentrate on why we continue to develop Trinidad and Tobago. I firmly believe that our future lies beyond Trinidad and Tobago, so that has been my primary focus in the last few years.”

A NEW INTERNATIONAL IMAGE Incorporated in 1979 as National Energy Corporation of Trinidad and Tobago Company Limited, the Company decided to rebrand in 2013 to National Energy. Dr Paltoo explains the reasons behind this were mainly to push the international barriers: “It was felt that we needed a more international image and presence and so the

entire image and focus of the Company went to push Trinidad and Tobago’s energy sector beyond the barriers of Trinidad and Tobago.”

The re-branding also allowed the Company to engage in a diverse range of activities associated with the energy sector and to become a respected international provider of energy services and logistics, especially for the emerging energy markets.

“We are actively looking to go out of Trinidad and Tobago and expand businesses in other provinces” explains Dr Paltoo. “Earlier this year, there was a mission to Suriname where we’re looking at deepening ties with that country and providing assistance as it relates to the development of the Surinamese energy sector. We feel that a lot of the expertise that resides with

PAGE 35

National Energy and as well as any wider energy sector can be used in assisting that country to develop their energy industry in a much more efficient manner. Even though we have done well, there’s no harm in ensuring that other countries can benefit from our experiences and expertise.”

CELEBRATING NEW PROJECTS In September of this year, National Energy celebrated the official opening of the Port of Galeota.

Located in the south-eastern point of Trinidad and Tobago, the multi-purpose port facility will be a logistics hub for the energy sector and will cater specifically to the offshore needs of both the exploration and production operators.

PAGE 36

“We have to be very sensitive in terms of our operations so all necessary precautions, processes and procedures are followed to the highest international standards, especially when it comes to the loading and offloading of cargoes”

The Port of Galeota, which includes five berths (one for the Trinidad and Tobago Coast Guard) will assist Trinidad and Tobago with the recent upsurge in planned upstream activity within the region and in turn, help to contribute to the generation of revenue for the country. “It is a dedicated energy port, which was completed a couple of months ago at a cost of US$85 million. It will not only service our existing clients but would also provide a platform for us to penetrate other markets,” explains Dr Paltoo.

The new industrial Methanol/ Dimethyl Ether project (DME), earmarked for the south-western part of the country is also under development at the Union Industrial Estate, located in La Brea. At an estimated capital cost of US$850

NATIONAL ENERGY (CORPORATION OF TRINIDAD AND TOBAGO) million, the project by Mitsubishi will be the first major industrial chemical plant at the Union Industrial Estate.

The project demonstrates the competitive pedestal that National Energy is currently sitting on: “Even though there is significant competition from other territories due to competitive gas prices, namely in Africa, the Middle East and even North America with the Shale Gas industry, we are still able to attract large multinational players, namely Mitsubishi of Japan in terms of developing new industries in Trinidad and Tobago,” says Dr Paltoo.

“In the past, our traditional investors would have come from Europe and North America but what we’re seeing now is that there is a lot of interest beyond our traditional foreign investment. There are a lot of Asian and South American investors, who are genuinely

interested in investing in Trinidad and Tobago,” Dr Paltoo adds.

SUSTAINABLE MANAGEMENT In addition to helping to promote Trinidad and Tobago’s expertise, helping to grow its economy and developing the infrastructural requirements needed to support the energy industry, National Energy also ensures that it takes the environmental impacts into full consideration.

With sustainability so integral to this industry, Dr Paltoo explains: “It is a key aspect in terms of what we do; green and sustainable management of the environment is one of our primary mandates in terms of all the activities that we do.

We are looking at other energybased projects to help ensure it’s a viable industry for decades to come.

“There’s a strong reliance on natural gas as the major input

material for energy sector projects.

However, we are striving to leverage our experience and expertise from the existing industries that we have successfully developed in order to create new value-added projects and products. It is important to build sustainable and economically viable industries so that in the event that there are issues with the supplier of raw materials 50 or 60 years from now, we would have developed a sophisticated energy industry that would not entirely rely on local raw material prices.”

EXPANDING INTO LOGISTICS With a fleet currently consisting of nine vessels, Dr Paltoo confirms that National Energy is looking to expand its business further into logistics with the addition of a new vessel before the end of the year.

One of the target markets the Company is looking at is Suriname:

• Structures and Bridges • Heavy Foundations • Marine Works and Ports • Light Rail Systems • Design-Builds • Structural & Historical Renovation • General Contracting

GLF Construction Corporation is a worldwide specialist in Marine and Heavy Civil Construction In doing business with GLF, our clients benefit from a tradition of 100 years of construction excellence, with experience in over 20 countries worldwide.

Contact:

The recently conpleted New Port at Galeota Project for National Energy

GLF Construction Corporation 80 S.W. 8th Street, Suite 2201 Miami, FL 33130 Tel: (305) 371-5228 Fax: (305) 371-9201

www.glfusa.com

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“We foresee that as a base in which we can provide logistics services for the emerging energy industry. We will be increasing our activity, increasing our portfolio and expanding our services so that we can accommodate clients not only in Trinidad and Tobago but in other provinces as well. Suriname is one of our first potential investment destinations,” explains Dr Paltoo.

audits in order to fill the gaps and close any loop holes that may be present within the system.”

“We understand the nature of our business and the risks involved and, in so doing we would take the necessary steps and follow the relevant processes and procedures, cementing all levels of containment and security where our shipments are concerned,” Dr Paltoo adds.

MAINTAINING INTERNATIONAL STANDARDS With the handling of hazardous products including methanol and ammonia and with no major incidents throughout its 35 years, Dr Paltoo explains that international standards for safety and security are imperative to the Company.

“We operate six piers and one dock that handle all the methanol, ammonia and iron and steel shipments out of the industrial estate” he explains.

“They are constantly audited, reviewed and assessed by all the relevant agencies. In fact, we have international agencies that conduct exercises to ensure that the highest global standards for safety and security are adhered to. Our staff are trained accordingly to ensure that those needs are met.

“We have to be very sensitive in terms of our operations so all necessary precautions, processes and procedures are followed to the highest international standards, especially when it comes to the loading and offloading of cargoes.

“Health and Safety is a constantly evolving industry in which we diligently follow and maintain the highest standards.” With the Company’s many processes and procedures, and as the operators of all the industrial ports in the country, Dr Paltoo admits that “improving health and safety is continual, undertaking multiple exercises and

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“I firmly believe that our future lies beyond Trinidad and Tobago, so that has been my primary focus in the last few years”

handled over 18 million tonnes of petrochemical and steel products with an estimated value of US$6 billion.

“For many years we have been the global leaders where that is concerned and our plants are some of the best run plants in the world.”

As with so many things, the world continues to change and with it comes new and increasingly competitive locations. Dr Paltoo reveals that National Energy must maintain its innovative flair and continue to be adaptive if the Company is to compete with emerging markets.

“There are lots of developments happening very quickly,” explains Dr Paltoo. “Especially with other very competitive locations, and so we have to continue to be adaptive. We have to be innovative.”

A FUTURE OF PROMISE

Competition in this industry is rife but with National Energy’s expertise and determination to stay ahead of the game, and place Trinidad and Tobago firmly on the map, Dr Paltoo explains why this Company remains one of the key leaders in such a competitive industry: “Let me put this into context: Currently, our methanol and ammonia production capacities are 6.5 million tonnes 5.6

Leaving behind its birthday celebrations for another year, National Energy is looking forward to a future that boasts promise and development. “While we have significant expertise in port operation and construction, we want to export that expertise. As such, we are looking at neighbouring countries where they are now developing their infrastructure,” explains Dr Paltoo.

“We have assisted those countries and are seeking to leverage our expertise to international markets and ensure that the same standards, processes and procedures which we follow are adopted in any other location, which we may operate.

“But at the same time, we firmly

million tonnes respectively. Trinidad and Tobago is a global leader in the export of methanol and ammonia, contributing approximately 20% of global methanol exports and 25% of global ammonia exports.”

In 2013, National Energy

believe that we can build our industry locally by partnering with foreign and local investors and going beyond our traditional products, such as methanol and ammonia, with the intent on developing other industries,” he concludes.

A LEADING CAPACITY

NATIONAL ENERGY (CORPORATION OF TRINIDAD AND TOBAGO)

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Developing the Upper Zakum field for Abu Dhabi Editorial: Christian Jordan

ZADCO is continually coming up with new methods to sustainably develop the lucrative Upper Zakum field on behalf of ADNOC and for the benefit of the shareholders. Total World Energy takes a closer look at the artificial island project and how this pioneering idea is assisting in the field’s development.

Abu Dhabi; the capital and the second most populous city in the United Arab Emirates and also capital of the largest of the UAE’s seven member Emirates. It’s fair to say that this region has seen exponential growth over the past

magnificent metropolis by growing not only the oil and gas sectors, but also other industries and the Abu Dhabi UPC (Urban Planning Council) has built the Abu Dhabi 2030 Urban Structure Framework Plan to optimise the city’s development

remains certain; oil and gas will continue to be a huge driver of the economy and the development of other industries including financial services and tourism.

Abu Dhabi is one of the world’s most important hydrocarbon

few decades and that growth has, in a big way, been down to the fantastic work that has been done in the oil, gas and wider energy industries.

And in the future there are plans in place to further develop this

through a 25 year program of urban evolution.

Economic diversification is a key pillar of the Economic Vision 2030 and the Emirate is setting ambitious targets for the performance of the non-oil sector. But one thing

suppliers, ranked among the top five exporters of crude oil and top 25 exporters of natural gas. The Emirate’s participation in the oil and gas sector spans the entire range of activities including exploration, production, transport, refining and

PAGE 40

ZADCO marketing of oil and gas. It also covers the fabrication of high-value energy-related equipment and the provision of related services.

In 2007, the global hydrocarbon market was valued at $2,150 billion with reported profit margins of around 15 per cent. However, Abu Dhabi easily exceeds this margin given its exceptionally low production costs and vast economies of scale. And one of the driving forces behind exceeding this margin is the business excellence displayed by the regions oil companies, one of the foremost being Zakum Development Company (ZADCO).

DECADES OF EXCELLENCE Founded in November 1977 as per Law No.9 for 1977, promulgated by

Sheikh Zayed Bin Sultan Al Nahyan, ZADCO’s mandate was to develop and operate the Upper Zakum field.

Currently, ZADCO’s shareholders include Abu Dhabi National Oil Company (ADNOC) with a 60% share, ExxonMobil with a 28% share, and Japan Oil Development Company limited (JODCO) with a 12% share.

Along with its work in the Upper Zakum field, ZADCO is also responsible for the operation and development of the Umm Al Dalkh and Satah fields.

Oil in the Upper Zakum, Umm Al Dalkh and Satah fields was discovered in 1963, 1969 and 1975 respectively.

The development of the Upper Zakum reservoir is considered as one of the major technical

achievements in Abu Dhabi and in the first shipment of Upper Zakum crude oil was exported on the tanker ‘Al-Ain’ in May 1983.

Upper Zakum is located 84 km north west of Abu Dhabi Islands and covers around 1,200 km² of the Gulf marine area. Zakum field is the second largest field in the Gulf and the fourth largest field in the world.

Umm Al-Dalkh is located 25 km north west of Abu Dhabi and Satah field is located 200 km north west of Abu Dhabi. Originally, operations at the Umm Al Dalkh field were managed by Umm Al Dalkh Development Company (UDECO) but in 1988, ADNOC decided to merge the operations of UDECO and ZADCO to rationalise operations, avoid duplication of functions and reduce cost.

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Today, oil from all three fields is processed at the plant on Zirku Island. Zirku Island is located 140 km north west of Abu Dhabi.

With its advanced oil and gas installations, Zirku is considered the main industrial base for the processing, storage and export of oil from Upper Zakum, Umm Al-Dalkh and Satah fields.

Alongside Zirku Island, ZADCO also manages Arzanah Island, the base for Satah field operations.

Located 180 km north west of Abu Dhabi, Arzanah can accommodate around 100 people.

A BRIGHT FUTURE Considering the significant infrastructure and personnel

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that ZADCO manages, and the importance of the fields under its management to not only Abu Dhabi but the global oil market, you would expect that projects in the pipeline would be significant, and you would be right.

“ZADCO looks to the future with confidence,” the company states, and after 37 years of successful operation, there is no suggestion of resting on laurels. “The fourth decade is a decade of further maturity and progress in all areas, devoting its efforts and capabilities to serving Abu Dhabi and the UAE. Improved oil recovery will be a main target and accordingly, the introduction of the state-of-the-art technology will be available to serve

and streamline operations, increase growth and control expenditure.

One more key element of the fourth decade strategy is to improve the human resources programs to enhance the Emiratization process as per the set target,” the company says.

One of the projects that will help the company on its growth path is an on-going project which will see production in the Upper Zakum field increased from 550 thousand to 750 thousand barrels of oil per day by 2015.

This idea has been a concept that has required a lot of attention from ZADCO and its partners as the investment required to up production is costly and requires

Lamprell has played a prominent role in the development of the energy industry in the Middle East for over 35 years and has played a significant role in construction of complex process modules. Our most recent contract award was for the ground breaking Zadco UZ750 Project in Abu Dhabi, in support of the incumbent EPC provider Petrofac Emirates. Our Jebel Ali centre of excellence has played a significant part in the support of modular construction projects and is synonymous with the fabrication of complex process, separation, gas compression, power generation and general topside modules. As a result, we are fully conversant with the handling and welding of exotic materials such as Inconel, duplex and super duplex, a common feature in complex onshore process trains and in the handling of hydrocarbons and associated gasses. We understand the stringent requirements in the commissioning and certification within this process environment. With multiple Middle East facilities we are able to produce pressure vessels and the columns that typically form part of module delivery, reducing the reliance on 3rd party supply for critical path items, a constant consideration for fast track projects. Building on this competence we are expanding our modular activities into other markets as the industry moves towards onshore modular construction versus stick build, in areas of the world where infrastructure does not lend itself to in situ construction and where operations already exist, but need to be extended. Total’s high profile North Sea development, Laggan Tormore, situated 125 miles West of Shetland, is one such example where in 2013, we delivered a total of 15 onshore process modules in a fast track ten month schedule. The modules are now installed and form part of the critical onshore gas process sirge system deployed within the Laggan Tormore gas plant. Finally, we see considerable synergy with Lamprell’s track record in the provision of complex onshore process modules for the emerging LNG, refining and petrochemical sectors.

VALUE DRIVEN BUSINESS Competitive Solutions for Complex Projects First Class Safety

Highly Skilled Workforce

Client Satisfaction

World Class Quality

Schedule Certainty

Lamprell has played a prominent role in the development of the energy industry in the Middle East for over 35 years and with multiple facilities, we are able to produce pressure vessels and columns, using exotic materials, which typically form part of module delivery. We are expanding our modular activities into broader markets as the industry moves towards onshore modular construction in areas of the world where infrastructure needs to be extended. www.lamprell.com

PAGE 43

new infrastructure solutions. Initially, the idea was to install an additional 25 wellhead platform towers, together with hundreds of kilometres of new flow lines, hundreds of new wells, significant well workover requirements, and investing in substantial gas injection expansion and gas capturing facilities. After some consideration, the company determined that this method was not the most efficient way to increase production and a new solution was devised.

This solution, referred to as the ‘artificial island concept’, was developed in collaboration with ZADCO’s shareholder ExxonMobil.

This idea suggested drilling and production centres could be located on artificial islands and to support the concept, ZADCO established a drilling division and began exploring the use of high-technology extended-reach drilling (ERD) – this is a technology widely used by ExxonMobil in locations such as the Sakhalin field in Russia.

Also, to reduce the required number of new wells and unlock

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“The rigs have advanced equipment to achieve the desired drilling depths with ERD, in addition to the Rig Walker System to allow the move on the cluster pads”

tighter areas in the reservoir, the company explored the use of Maximum Reservoir Contact (MRC) technology. Previously, MRC and ERD had not been widely used in the region and although they had been proven in other parts of the world, their use on the scale planned by ZADCO was unprecedented.

In the past, ZADCO has drilled wells of approximately 10,000 feet but, in the pursuit of growth, the company wanted to go deeper.

Using the artificial island concept, the company hopes that it will be able to drill to 30,000 to 35,000 feet. So far, ZADCO has completed drilling a pair of record-breaking MRC wells both of which are almost 20,000 feet total drilled length. These are classed as pilot wells and the knowledge and experience gained during their operation will be used to aid in planning for the future. ExxonMobil’s experience with drilling technology has been paramount in the development of this project, so much so that the company has organised a Technology Centre co-located within

ZADCO the ZADCO HQ allowing for access to innovation, technology and bestin-class idea sharing between the two companies. The artificial island concept will also be supported by NDC (National Drilling Company) and industry leading directional drilling and completion service providers to ensure success in the execution stage.

In June, a new rig, the ND 66, was inaugurated on one of the artificial islands - the South Island. Provided

by NDC, the rig has been described as ‘state-of-the-art’ and ZADCO’s Senior Vice President, Development, Mr Ali Hassan Al Marzooqi said: “These up-to-date rigs will support ZADCO’s mandate to achieve sustainable production based on full field development. The rigs have advanced equipment to achieve the desired drilling depths with ERD, in addition to the Rig Walker System to allow the move on the cluster pads.

“The artificial islands concept will significantly reduce life-cycle development costs and enable long term maximum recovery levels to be achieved. To that end, this effective partnership between ZADCO and C NDC will contribute considerably to M tackle the challenges and meet the Y targeted production levels.”

CM

A KEY PARTNER

MY

Being such an important player in CY the local and international industry, CMY ZADCO does not only focus on its own operations in its own fields. The K company is always seeking to build mutually beneficial relationships with partners to grow the industry for the benefit of all.

its first oil from the Umm Lulu Field.

Located in the Arabian Gulf 30 km north west of Abu Dhabi, the Umm Lulu field has the potential to produce 105,000 barrels per day; Phase-1 of the project will add 22,000 barrels per day by end of 2015 and the rest will be added by full field development in 2018.

The Phase-1 development includes two new wellhead towers to host 10 new wells, powered by solar energy, subsea pipelines, fibre optic cables for data transfer and a flexible pipeline for water disposal and all oil produced will go through ZADCO’s facilities at Umm Al-Dalkh and Zirku Island.

HLG TotalWorldEnergy Ad This is the first time that ADMA-

OPCO oil will be processed by another operator shows the success of the continued collaboration between the ADNOC group of companies.

With many other projects in the pipeline, some planned for completion during the end of 2014, it seems that ZADCO is taking steps towards its goal of successfully developing the Upper Zakum field on behalf of ADNOC and for the benefit of the shareholders. As progress towards this goal is made, ZADCO will continue to assist Abu Dhabi and the wider region to grow and excel, not only in the oil industry, but across 88x125mm.pdf 1 10/29/14 11:55 AM the entire economy

LOCAL KNOWLEDGE. INTERNATIONAL EXPERIENCE. HLG is one of the leading contractors in the Middle East.

With a reputation for delivering complex projects in remote locations, HLG specialises in the provision of onshore and offshore infrastructure and facilities.

The Group’s oil and gas capabilities include pipelines, earthworks, tank farms, jetties, camps, roads and structures, modular buildings, mechanical, electrical and instrumentation installations, as well as logistics handling and other supporting infrastructure for production and processing facilities.

Recently, it was reported that the ZADCO’s facilities at Umm Al-Dalkh and Zirku Island had been used by The Abu Dhabi Marine Operating Company (ADMA-OPCO) after the company brought its Umm Lulu Phase-1 facilities online and produced

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Coming up from down under Editorial: Joe Forshaw

Located about 220 kilometres of Western Australia, in the Timor Sea, the Ichthys project is currently taking shape. Representing the largest discovery of hydrocarbon liquids in Australia in 40 years, the Ichthys LNG Project is currently ranked among the most significant oil and gas projects on the planet. Effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and an 889 km pipeline uniting them for an operational life of at least 40 years, this is a project that requires articulate and precise planning. Seiya Ito, INPEX CORPORATION President Director Australia tells Total World Energy more‌ Q: What is the history of the project - Why was it first developed? When was the region first explored? Who was responsible? How did INPEX get involved?

In an open bid conducted in 1998, INPEX acquired the petroleum exploration permit WA-285-P,

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located in the Browse Basin, off the north-west coast of Western

Thereafter, INPEX obtained the necessary government approvals

Australia. From 2000 to 2001, three exploratory wells resulted in the discovery of an extremely promising gas and condensate field now known as the Ichthys gas-condensate field.

Front End Engineering and Design (FEED) work began in 2009.

and concluded LNG sale and purchase agreements (SPA) with gas buyers before making the Final Investment Decision (FID) in January 2012. In December of the same year, the Ichthys LNG Project finalized arrangements for US$20 billion in

INPEX: ICHTHYS LNG PROJECT project finance loans including those with eight export credit agencies and 24 commercial banks, in what was at the time the biggest project financing ever arranged in the international financial market.

The Ichthys LNG Project is now in the construction phase, with first production expected to commence at the end of 2016.

Q: With regard to the LNG plant, why was Darwin chosen?

Why was onshore processing facilities chosen over alternative offshore processing facilities, such as FLNG for example?

INPEX ultimately selected Darwin as the location for its gas liquefaction and processing facility (LNG plant) for the Ichthys LNG Project as a result of a number of factors, including the need to start up the project and deliver LNG to Japan in a stable and timely manner, and the support the company received from the governments of both the Northern

Territory and Australia.

As a capital city, Darwin offered a workforce, operating harbour, an existing LNG operation, infrastructure such as transport, roads, an airport and hospital, all of which made this location very attractive and has been a key factor in the Project being able to have a high level of local employment to date. Onshore processing facilities were selected based on the determination that the Ichthys gas-condensate field would yield a quantity of hydrocarbons sufficient to ensure long-term production, which in turn would be best supported by onshore facilities from an economic standpoint.

Q: For such a complex project, consisting of construction both on and offshore, what have been the most significant challenges?

Delivering a mega project safely and according to plan is not easy, especially for one like Ichthys.

Changes in design, delays in engineering, significant workloads at fabrication yards and designing for a 40-year operational life are some of the challenges we are successfully managing.

The world’s best contractors, financial security from our investors, highly experienced project managers and an innovative contracting strategy all play a role in addressing these challenges and minimising risk to cost and schedule.

Q: Do you strive to work in partnership with local companies compared to international companies, or is it a mixture of both? What are the benefits to working with either?

Given the global nature of the Ichthys LNG Project, we work in partnership both with local companies in Australia, and international companies around the world, all of which provide the knowledge and expertise required

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to oversee the whole chain of development and production components - subsea, offshore, pipeline and onshore. Currently we have more than 30,000 people worldwide working on this US$34 billion project. Nearly 5,000 are on site in Darwin, Northern Territory and nearly 1,000 in Perth, Western Australia.

Q: At what stage is the project currently? Is it all on track to meet the estimated first production in 2016?

We are currently proceeding more or less on schedule. We are confident in our schedule and expect to commence first production at the end of 2016, as initially planned.

Q: What are the operational plans once complete, production figures etc? What does the project mean for the future of Gas in Australia? How much LNG will be exported and where to?

The Ichthys LNG Project will deliver 8.4 million tonnes of LNG per annum and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

Approximately 70% of the LNG is scheduled to be delivered to Japan, helping deliver Japan’s energy security. The project is also vitally important to Australia (and the Northern Territory), contributing to the country’s position as a top LNG supplier to the global market while making a significant contribution to the Australian economy.

Q: What will the social and economic benefits be for Australia – job opportunities, training, local business growth etc?

The Ichthys LNG Project is vitally important to Australia (and the Northern Territory), contributing to the country’s position as a top LNG supplier to the global market while making a significant contribution to the Australian economy. To

date, we have committed more than AU$ 10 billion to Australian companies through a wide variety of contracts. AU$ 5.2 billion of this is for Northern Territory-based companies during construction, and approximately AU$ 50 million has been committed to Aboriginal and Torres Strait Islander businesses, almost exclusively in the Northern Territory. With an operational life of at least 40 years, thousands of jobs, training and business opportunities will be created for generations to come

“The Ichthys LNG Project will deliver 8.4 million tonnes of LNG per annum and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak”

Delivering the Difference in all fields of APAC Sea Trucks Group is pleased to come back to the Australian region for providing Accommodation Support Services to INPEX on their Ichthys project. Over the years the Sea Trucks Group have gained a good reputation for providing quality and well executed Accommodation Support projects in diverse fields and regions of the globe.

In 2014 Sea Trucks Group have been breaking new grounds for the group by providing Accommodation Support services in the harsh area North of Sakhalin, Russia. The 2014 campaign in Sakhalin saw the team at Sea Trucks engineer, procure and install additional Accommodation modules onto the deck of the JASCON 34, adding an extra 224 berths to the vessel’s existing capacity, thus totaling 563 berths.

Over the past years Sea Trucks Group have been dedicated to working in the APAC region. After the successful SURF installation campaign for BHP on the Pyrenees development in 2009 and the high profile West Atlas Decommissioning program in 2010, JASCON 25 executed a precision lifts campaign for the Origin Energy Yolla Mid Life Enhancement Project in 2012, where the vessel provided accommodation and heavy lift services. The vessel continued being busy executing prime examples of the vessels DP3 hybrid design concept. 2013 saw Sea Trucks Group perform in such diverse fields as Salvage of a vessel in the Philippines, Modular lifts onto FPSO in Malaysia and SURF installation in Brunei.

The versatile DP3 vessels of the Sea Trucks Group can accommodate up to 469 POB in accommodation mode (more by installing extra accommodation modules) and can efficiently transfer personnel utilizing their 42,5 m heave compensated telescopic gangway. The vessels have high capacity cranes with heavy lift capability of up to 800 t and 1,800 t and have large unobstructed deck areas of up to 1,500 m2 which can accommodate large topsides modules and subsea equipment.

The versatility of the vessels is further demonstrated as the large deck space allows deployment of modular rigid and flexible pipelay equipment for subsea, umbilical, risers and flowlines (SURF) projects for our clients in the Asia Pacific region.

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Meeting the challenge

Editorial: Harriet Pattison

Listed on the Singapore Stock Exchange, Triyards offers integrated full-service engineering, fabrication and ship construction solutions for the global offshore and marine industries. A front runner in the fabrication of SEUs in South East Asia with numerous orders in the pipeline, it’s no wonder Triyards has a healthy order book and are amongst the industry leaders. For a company that was only founded less than a decade years ago, the future looks to be an exciting one with new products and services on the horizon‌ Triyards Holdings Limited, the offshore vessel fabrication and engineering solutions provider to the oil and gas industry, focuses on shipbuilding, ship conversions, medium to heavy

PAGE 50

fabrication works and ship repair.

The company was founded less than a decade ago in 2005 with the acquisition of its first facility in Vietnam, and has since become the front runner in the fabrication

of self-elevating units (SEUs) in South East Asia.

Total World Energy speaks to CEO, Eng Yew Chan, who explains how the company has been significantly increasing its

TRIYARDS capacity and product list since its inception: “We attained our second facility in 2007 and acquired our engineering and design facility for our crane and heavy lifting product line in Houston in 2010.

Almost exactly two years ago we were listed on the Singapore Stock Exchange in 2012 and more recently we increased our capacity in Vietnam even further through the acquisition of Strategic Marine.”

“The orders also showcases the confidence clients have in our engineering capabilities. This unit reinforces our versatility and capability in this product segment” For over ten years, Strategic Marine has been building aluminium and steel vessels as well as complex aluminium and steel structures for both the mining and marine infrastructure sectors.

The acquisition of its two yards, one in Vung Tau, Vietnam and the other in Singapore, have a total area of 158,648 m2 and will increase Triyard’s yard capacity by over 67%, with the exception of its yard in Houston.

Speaking of the acquisition, Mr Chan said in a statement: “Strategic Marine is a good fit for Triyards as we work to build

our name in fabrication and engineering solutions and move beyond the construction of oil & gas product lines adding capabilities and products which would target a wider clientele base.”

In a busy ten years, Mr Chan attributes Triyard’s continuing success to its two-fold strategy: “Firstly, with the increased capacity and the proximity of the Vietnamese shipyards from one another we are able to increase our capacity very efficiently as they’re only about 400m to 500m apart.

“Secondly, we have a new product line which is aluminium based. This is a little bit unique in our shipbuilding industry in that there are not many shipyards who will be able to do steel products as well as aluminium products efficiently.”

Joining the group 12 years ago, Mr Chan’s career began when he started working for Ezra Holdings in 2003 before joining EOC Limited as CFO. In February of this year Mr Chan joined Triyards as CEO.

Eng Yew Chan

A builder of SEUs, Triyards is the first company in the world to construct the 450-feet SEU series, known as the BH-450, they are self-propelled units that boast large deck areas and high capacity

yards with the capability to both design and build its very own SEUs and jack-ups. It also introduced its new class 400 high pressure, high temperature drilling jack-up rig, the TDU-400.

At over 163m, this new innovative product will help to enhance both the engineering expertise whilst withstanding up to 100-knot winds and water depths of an estimated 120m.

A large segment of the SEU product line is the building of liftboats to clients on an international scale. With seven built to date, Mr Chan explains that the company has seen a significant number of enquiries for this particular product since July

cranes. The series also have room for up to 250 personnel in private accommodation and standing at 130m in length, the SEU series have the capability to operate in water depths of up to 90m.

In May last year, Triyards became one of only few Singapore

of this year, with an increase in orders. He attributes this surge in interest to the growing momentum in South East Asia and the Middle East for the deployment of liftboats.

“We still have a very healthy order book and I think there’s

AN INDUSTRY FIRST

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bookings for both the aluminium product line and our steel products, predominately revolving around the self-elevating units, such as the lifts boats,” he explains.

“The liftboat construction time varies; for the smaller units it can be anywhere from 14-16 months, while the larger units can take anywhere between 18-20 months, depending on complexity.”

In July this year Triyards completed two liftboat contracts worth US$112 million and more recently, added another liftboat contract to its order book in a deal worth US$50.5 million, which will bring the total value of new building orders to US$162.5 million for the company.

With the most recent order due for completion in 2016, Mr Chan

said: “Our recent new orders attests to the industry’s confidence in us and our ability to meet our clients’ stringent requirements on safety, quality, timeliness of delivery and cost efficiency. They also reflect the market’s satisfaction of our engineering and fabrication capabilities.

“Operators are starting to realise the high value-to-cost ratio of using liftboats, increasing its demand for these vessels. Our extensive track record, proven designs and fabrication capabilities put us in good stead to gain from this and enhance our lead in this product segment.

“The orders also showcases the confidence clients have in our engineering capabilities. This unit reinforces our versatility and capability in this product segment.”

In addition to the company’s engineering capabilities, Mr Chan attributes Triyards continued success in the SEU field to being the early first movers and to its strategic corporate structure: “With regards to our corporate structure, we can actually turn this into commercially viable projects. With larger shipyards these projects may seem a little bit too small, especially with cost efficiencies and overheads, they may not be profitable. Juxtaposed against that is the smaller yard owners who may not be in a comfortable position to build a liftboat which would cost at the very least US$40-$50 million.

Triyards is finding itself in quite a comfortable niche, where we are the right size to actually produce these units.”

Marine and Shipbuilding

Navigate to new horizons Get on course with green returns half_page_ad_Oct2014 (151x112).indd 1

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10/24/2014 5:49:59 PM

TRIYARDS Another major contract for Triyards, contracted to parent company Ezra Holdings, is the Lewek Constellation. A multi-lay offshore construction vessel with ultra-deep-water pipe-laying and lifting capabilities, it provides versatility, speed, maneuverability and a 3,000 MT heavy-lift crane.

Completed this year, the Lewek Constellation serves VAALCO Gabon to carry out operations at its Etame Marin Field located offshore of Gabon in West Africa. It has joined EMAS AMC’s Lewek Express pipelayer to carry out offshore works for VAALCO in a contract worth an estimated US$120m.

to day basis, Triyards ensure it remains nimble and keeps it staff levels to a minimum.

THE HOUSTON FACILITY

It is clear then that Triyards’ increase in activity and capacity has placed them in a key industry position. “For the lift boat product line, I think we have a very strong track record of successful delivery,” explains Mr Chan.

The company’s geographical proximities also help to contribute to its success: “If you’re going to order a liftboat from Triyards in Vietnam, to be deployed in South East Asia or to the Middle East or to Africa, the proximity of our facilities to those markets gives us a distinct cost advantage from a transportation and cost perspective.”

With 2,000 staff employed directly under Triyards, Mr Chan explains these are split almost equally between the two facilities in Vietnam and the team leaders

In addition to the shipyards in Vietnam and Singapore, Triyards also has an offshore lifting appliance facility located in Houston, Texas.

It produces equipment such as active heave-compensated offshore cranes, A-frames and winches which can be installed both on the SEUs and offshore construction vessels that require stringent standards.

Mr Chan explains the facility accommodates the design engineering while the fabrication is undertaken in the Vietnamese yards where costs remain much more competitive. “What the Houston office does do is come up with new and innovative product lines that we are now exploring to actually turn into a stock program,” he explains.

Looking to the future, Mr Chan explains that Triyards is looking to increase its efforts to market the company on a more international basis in order to build a more diverse client base. With the new aluminium product line that has just been introduced, Triyard’s product portfolio is steadily increasing with a wider variety to offer its clients.

“I think it’s a very exciting time for us,” Mr Chan explains, “not only because of the potential upstream and interest in the SEU segment but because we are also basically introducing new products to the

and project managers are regularly sent for improvement training and refresher courses.

When the company delivered the Lewek Constellation to Emas, it employed an estimated 7,000 sub-contractors but on a day

market with the Triyards name, such as the aluminium boats. We are also looking forward to the roll out of our new crane product which will compliment the products we have currently very well,” he concludes

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PAGE 53

Renewable, cheap, eco-friendlyBiogas, the fuel of the future?

Editorial: Roland Douglas

Agraferm Technologies is a leading name in the biogas industry offering services including project management, construction, re-powering, and technical and biological services for AD plants across Europe and further afield. Two Directors from this innovative company tell Total World Energy more about the growth of the business and the development of the industry…

Biogas is perhaps the most overlooked of all of the prominent renewable energy sources around the world. Wind, solar and to some extent, hydro, claim all the plaudits

Laboratories in the USA said: “The difference between biogas - the dark horse - and ‘sexy’ solar and wind that everyone is talking about, is that biogas is steady and storable.”

recycled waste while producing a very small carbon footprint.

Biogas is produced through the process of anaerobic digestion with anaerobic bacteria or fermentation

in the renewable energy sector but as we know – they do have their pitfalls. And biogas is no different but one thing that it has in its favour is that it can provide a continual energy source.

A report from Woods End

But what is biogas? Energyscience people will tell you that biogas typically refers to a mixture of gases produced by the breakdown of organic matter in the absence of oxygen. The production of biogas is a result of using raw materials such as

of biodegradable materials such as manure, sewage, municipal waste, green waste, plant material and crops. Biogas is a fuel gas, a mixture consisting of about 55% methane (CH4) and of 45% CO2 and sometimes amounts of hydrogen

PAGE 54

AGRAFERM TECHNOLOGIES AG sulphide (H2S), moisture and siloxanes.

But producing biogas is not an easy process; to create a quality, safe, productive facility, you cannot go out with a screwdriver and build it yourself. You need the help of a specialist and one of the foremost names in biogas plant construction in Europe right now is Agraferm Technologies, a German based organisation which this year celebrates a historic milestone.

“We will be celebrating our tenth anniversary this year,” says Director, Eike Liekweg. “The company began when there was already a boom around biogas in 2004. Our competitors at that time came from related industries, perhaps they were in tank building or construction but none of them were biogas specialists.

The business was founded as the only real biogas company and specialists from other existing companies joined to form Agraferm.”

Head of Sales at Agraferm, Markus Ott says that the founders of the company all came from a biogas background, giving great experience to the management team.

“The guys who founded Agraferm were all already active in the biogas industry before Agraferm. Take myself for example; biogas was my first job after university so I have been in the industry for over 18 years,” he says.

“The founding of the company was based on being a specialist and coming from a biogas background and not

biological aspects as well. The idea is always to bring together mechanical requirements with the biological ones.

We are not doing rocket science in terms of equipment. We use standard pumps, standard engines, standard tanks – so there is no rocket science in the components – but the process design, engineering and smart cooperation of components with each other and with the bacteria; that is a core focus.”

AGRAFERM PLANT In its ten years, Agraferm has demonstrated its expertise in a wide variety of applications and many different locations. With completed plants in the UK, Germany, Italy, Slovakia, Czech Republic, Luxemburg, Belarus and Latvia, the company has a wealth of experience but Liekweg says each plant is different and always put together with the customer requirements in mind.

“Each one is unique but there’s

elements that are typical to an Agraferm plant. Our plants, from a space and tank volume perspective, are smaller than other plants because we run a higher dry matter content in the tank and we have vertical stirrers in the main digesters and this specific way of stirring the mass is part of our process knowledge.

“It really is bespoke design depending on the customers input materials and how they want to handle it and what they want to do with it.

“All the plants vary in size of output. It always depends on the legislation; there might be certain feed-in tariffs and customers tend to build plants which are economically viable in the long-term. When you go to different countries, the legislation changes again and so you have to be flexible,” he says.

One of the key differentiators between Agraferm plants and the rest of the market is that

other technical fields. The knowledge we have in the business was active in biogas before the German boom.

“You need engineering skills as a core, and knowledge of

PAGE 55

digesters in an Agraferm facility can take higher volumes of dry matter, resulting in a smaller plant with a larger output.

“This has advantages in construction, operation and in cost,” says Ott. “Another very important factor is the flexibility you get with feedstock.

If you have an AD (Anaerobic Digestion) plant that is able to mix a higher dry matter content, you are much more free to leave maize silage and there is a trend in the AD business, to think about other feedstock apart from maize silage, in both the agro as well as the waste sector.”

This flexibility is hugely important as sources of feedstock can change because of many different factors and it is important that a feedstock

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“People would not consider building a coalfired power plant themselves but in biogas, people think it’s simple but at the end of the day, it’s still a power plant”

shortage or a change in input does not affect overall output.

“You can substitute your maize silage with grass for example without creating a process bottle neck in your system,” says Ott. “We have seen this in Germany because roughly 30 per cent of the AD plants are said to be in economical critical situations because the maize price went up and we are also seeing this is in the UK. There was a huge fear across the industry as everyone cried for different feedstocks.”

And while wet fermentation is less efficient, Agraferm is specialised in high load fermentation independent of input material, be it organic waste or agricultural residues resulting in a vast knowledge of suitable feedstock and important flexibility innovations.

AGRAFERM TECHNOLOGIES AG ORGANIC GROWTH It is widely acknowledged that biogas has a hugely important role to play in the global energy mix and Agraferm is of course looking to grow as more and more countries switch on to the benefits of efficient biogas plants.

In the USA, the Environmental Protection Agency’s AgSTAR program reported in 2010 that around 8000 American farms could support biogas recovery systems, providing about 1600 megawatts of energy and reducing emissions of global warming pollution by about 1.8 million metric tons of methane - the equivalent of taking 6.5 million cars off the road.

And Agraferm is ready to grow around the world, taking into account national operational differences, as Liekweg explains: “We are looking at markets outside of Europe. We believe that there are other areas in the world that will be growing including South Korea and Brazil but these are different in the sense that they don’t use energy crops, that’s more a European thing, so you’re dealing with dung, litter, manure and different kinds of waste and you have to build the plants more towards the national requirements which might include less automation, different climate conditions and so on.”

And when the company does work on projects away from Germany, more than just clean energy is generated.

Employment opportunities, knowledge and innovative thinking is created for local communities. Liekweg says that when Agraferm works in new regions, there will be a mix of experienced personnel and local contractors in place to ensure quality.

“We like to have a mix of people,”

look for the right suppliers. We do have our regular suppliers of core equipment but when you look at a tank for example, this can be done locally and the majority is done by our subcontractors and we supervise and coordinate. If we were to build a project in South Korea, we would supervise and train operators so that they can run the plant on their own.”

And this on-going maintenance and operation of the plant is important as some of the mechanical components do require upgrading from time to time but, as Ott mentioned previously, there are few high-tech components in an AD plant and service and operation of the plant can be trained.

“If you look at a biogas plant, you might have an engine if it’s a plant that produces electrical power and the engine requires maintenance but the rest is not so maintenance intensive.

Our plants are very robust and do not need too much on-going service.

“We do ensure we have service personnel available, we are opening a service base in the UK before the end of the year, because it’s a necessity to keep the plants running smoothly but it’s not huge business,” says Liekweg.

“Nobody in the industry is installing rocket technology, one will always be able to find local guys to undertake the technical work of the pumps etc,” says Ott.

he says. “Agraferm is an EPC contractor; we do the engineering, we do the procurement, and we do the commissioning. We source everything, we do assembly on site but we don’t actually produce anything. In any project we will

PAGE 57

“On the biological side, it’s the opposite. With this, the client has to stay in touch with us as the deliverer of the plant if they want to develop feedstock mixes in the future as we know the plant and we can recommend switch over plans if a change in mix is required,” he adds.

‘NIMBY’ One thing that the energy industry, renewable and all, has faced over the years is opposition. Every sector and every idea faces opposition, sometimes from government, sometimes from local communities and sometimes from associations but when projects are managed correctly and all stakeholders are kept in the loop, opposition is easier to manage. In the biogas industry, because of the nature of activities, people often have reservations about new plants but Liekweg says there is nothing to worry about.

“This is called the NIMBY effect – ‘not in my backyard’ – and you have that with any kind of energy plant. In Germany and in the UK we have a lot of wind farms and generally everyone says yes, wind farms are a good thing and we don’t want too much nuclear or coal but we don’t want to see the windmill so put it somewhere else.

This is the same with biogas. The first reaction is that people don’t want it.

They think it might smell, it might be dangerous, it might be noisy, it might create traffic but this is a matter for the project developer, to try and engage with the public as much as possible and show them that biogas plants do not affect people negatively.

“Is it dangerous? No. These are professional industrial style plants. In the early days of biogas, there were some accidents but these were with unprofessional projects where farmers had tried to build their own biogas plants so today I don’t see a big risk at all,” he says.

Ott says that the industry should

PAGE 58

come together to set standards of best practice for the construction and operation of biogas facilities to ensure that below-par plants are never even considered.

“It is important in the UK market to not repeat similar mistakes that were made in Germany where in the first few years of biogas, people tried to build biogas plants on their own and not to technical standards,” he says. “I see the risk that this could happen in the UK, so I think it should be up to the industry and the various associations to define certain minimum standards of best practice otherwise you could have everyone trying to step into this business, with no idea about biogas, and you end up with good plants but also bad plants because the bad ones are cheaper. The UK Anaerobic Digestion and Biogas Association (ADBA) has addressed this and working groups are already active in this field.

“People would not consider building a coal-fired power plant themselves but in biogas, people think it’s simple but at the end of the day, it’s still a power plant,” Liekweg adds.

and there is no competition to wind and solar so it’s well received.

“Wind and solar are cheap but they need a stabiliser to balance during peak times and on the base load so biogas should always be considered as part of a wider system with all the technologies working together,” he says.

And while the industry does continue to grow, garnering support with every extra megawatt produced, Agraferm

“We would hope that governments would be able to step into discussions with our local branches and have smooth negotiations about how to further grow the biogas industry”

Today, biogas is widely used but its roots remain with agricultural consumers. However, biogas is always growing and becoming more popular and this is, in part, down to its multiple applications.

“Some countries have understood the versatility of biogas; it can provide energy for electricity and also for heating and for the transport sector because biomethane chemically is nothing more than natural gas or CH4

Technologies will be there to provide support and expertise as it too grows, ensuring that the industry is not overlooked.

“We are the market leader in the UK by plain biogas volume. Across Europe, we are still a niche player as we don’t serve a mass market. Our power plants are unique, our technology is unique and everything is built to a very high standard so we are not the cheapest,” says Liekweg.

“We would hope that governments would be able to step into discussions with our local branches and have smooth negotiations about how to further grow the biogas industry,” Ott adds.

and those countries that have seen these benefits are supporting biogas strongly,” explains Liekweg. “The UK has the RHI, where biomethane can be used for heating; Italy has a biomethane for transport law where natural gas is specifically used in the transport sector

And is the organisation wellpositioned for the future? Ott is in no doubt: “We feel that our size is perfect right now as we are small enough to come through hard times but large enough to ensure quality and development,” he concludes

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PAGE 59

Networking on a global scale Editorial: Rosie DeWinter

First established in 1971 and recognising the potential of its own reserves, The Association of Dutch Suppliers in the Oil and Gas Industry has helped to promote, educate and distinguish Dutch industry supply companies. Now surpassing 430 members, its methods are clearly working. Organising exhibitions and trade missions from Australia to Texas and Aberdeen to Singapore, Managing Director, Sander Vergroesen, tells Total World Energy the reasons for the association’s exponential and continued success‌ With the oil and gas industry maintaining a prominent position

Western Europe, off the coast of Brazil and Western Australia with

Suppliers in the Oil and Gas Industry (IRO) was first established in 1971

within the energy sector due to an ongoing demand for more traditional energy sources, the Dutch oil and gas supply industry is flying high amongst the global industry leaders.

Dutch oil and gas contractors are now operating in locations including

specialist vessels on hand for almost any offshore project in the oil and gas industry.

With so many of these Dutch companies both looking to and already operating on a worldwide scale, The Association of Dutch

to help promote and establish them successfully within the oil and gas industry. Headquartered in Rotterdam, IRO has an impressive repertoire of over 430 members involved in the field of engineering, maintenance and manufacturing,

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IRO ASSOCIATION both onshore and offshore.

Total World Energy speaks to Managing Director, Sander Vergroesen, who explains the history behind IRO: “The association was founded originally as a council which included a mix of governmental bodies, companies and scientific institutions. After the discovery of Slochteren, the huge onshore gas field in 1959, IRO decided to establish the potential of its own reserves and during the 1970’s began to venture offshore into the North Sea. “From 1971 to 1991, it remained a mix of companies but in 1991 they decided to make it an association for suppliers in the oil and gas industry.

Since then, it has grown and received

industry recognition for successfully providing a platform for Dutch suppliers.”

INTERNATIONALLY ORIENTATED For over 20 years, IRO has had two main commitments, as Vergroesen explains: “Firstly, the main purpose of the association is to facilitate the network for the member companies.

This is a mix of huge market leading companies and small innovative companies. Together they cover the complete supply chain for oil and gas, from seismic exploration to delivery and transport for huge vessels and installations.

“The smaller companies frequently deliver to the bigger companies and

during our networking events they get the opportunity to meet each other. There are numerous reasons to bring them all together so facilitating network meetings is a very important part of IRO’s activities.

“Secondly, an equally important aspect is export promotion. IRO is responsible for the organisation of the Holland Pavilion at international trade shows and exhibitions in key upstream oil and gas development areas. These exhibitions are very important as they allow members to sign in and join us at the Holland Pavilion next to the larger companies who have their own booths,” explains Vergroesen.

“Additionally, we organise trade missions together with members of

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our parliament and our government and more recently, we are looking to go abroad with ministers, our Prime Minister or even royalty if possible.”

Held all over the world, the exhibitions include Australasian Oil and Gas held in Australia, the OTC in Houston Texas and Rio de Janeiro Brazil, Offshore Europe in Aberdeen, ADIPEC in Abu Dhabi, Offshore Northern Seas in Stavanger and exhibitions held in both Kuala Lumpur and Singapore. The Offshore Energy exhibition in The Netherlands, held at the end of October, saw the majority of IRO’s members in attendance.

STAYING CONNECTED With over 430 members, IRO ensures they are helped and promoted on a national and international scale.

Vergroesen explains the association has its own Netherlands Oil & Gas catalogue which is released annually and members are invited to advertise their company profiles.

As well as published online on www.iro-noc.nl, the catalogue is also taken to each exhibition where IRO is present and handed out to visitors. It

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“Those exhibitions are very important and next to these we try to organise trade missions. We try to do these more and more together with members of our parliament and our government”

provides a good view of the activities, services and products of the Dutch suppliers in the oil and gas industry.

“We also publish a monthly newsletter which is sent to all our members,” explains Vergroesen, “in this way we stay connected to our members but also to what’s happening in our industry in the world.”

HEALTHY COMPETITION Of course, with so many companies operating in such a similar and competitive field, is there much competition between them? “We try to protect our existing members,” explains Vergroesen. “If a company is willing to become a member of our association we make sure they have a track record in our industry and have an added value to the association and its members.”

Within the association, Vergroesen admits there is naturally competition.

So while the larger companies involved don’t necessarily need to be with an association, Vergroesen believes they are a part of it because they know suppliers to them are part

IRO ASSOCIATION of the IRO association. Vergroesen hopes this competition will challenge them and push them further, either to venture deeper into the oceans or travel to more remote areas like the Arctic.

“They will need new equipment or solutions to overcome these challenges,” says Vergroesen, “so they look to IRO members to see who could provide these services. This helps to stimulate healthy competition between them and encourages new and innovative products. Many of the members know each other from the networking events so they consult each other and although they are competitors, it inspires them to stay ahead and stay sharp.”

The association then is not one of unnecessary competitiveness but one of innovation and comradeship: “The companies are always willing to learn, not only what’s happening abroad but also from each other.

They feel encouraged to team up with the other members to help improve the industry and I think IRO plays a key role in this. We try to combine our committees and the network facility too which is very important,” explains Vergroesen.

provide to our members and the committees are vital characteristics of the association.

“Additionally, we provide a platform where a group of companies can discuss topics in the field of; export and public relations, gas, human resources and safety, innovation and regulatory affairs, offshore renewable installations and well services and drilling. We try to team up with other associations too, to see where we can combine to become more powerful,” Vergroesen adds.

Looking to the future, Vergroesen explains that it is essential for IRO to monitor what is going on around the world in order to establish new market areas such as South East

Asia: “We know that Indonesia is also very important,” he says. “We feel things are about to happen in these areas so we stay linked to our government and try to motivate them to support us in trade missions. We often organise these in cooperation with Dutch embassies abroad.”

Ultimately, IRO has continued to hold very close connections to its members: “We belong to them,” explains Vergroesen, “and we are independent so if they want to change things, they can stand up and inform us.” Almost 45 years on, IRO strives to ensure its members “keep track of what’s happening in the world and stay ahead,” Vergroesen concludes.

MOTIVATION & NETWORKING After four decades, IRO has seen exponential growth organising more exhibitions and trade missions across the globe and now with its 430 members, it looks set to encourage more young people to work in the oil and gas industry and continue to help its existing members in achieving international business through promotional export events.

Vergroesen attributes the association’s continuing success to numerous causes: “I think the networking facilities, the export promotion activities, the way we try to be a scout in areas which aren’t recognised and the information we

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The preferred cable technology partner Editorial: Christian Jordan

With many years’ experience in advanced cable design and supply for leading clients in the oil and energy, defence, seismic exploration and scientific market sectors worldwide, DE REGT Marine Cables is recognised as a true industry leader. Managing Director, Claude Pelzer tells Total World Energy more about how the company has grown, and continues to grow, into a first class product and service provider…

In the past couple of years there has been a trend towards exploring further offshore and in deeper, harsher environments. While some companies are happy to drill in shallow water, taking advantage of the vast proven reserves that are

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available, it is exploration in deep water (500 feet or more below the surface of the sea) that are becoming the real challenge for the world’s foremost energy companies.

And as we all know, it’s not just the oil companies that have to

invest after a decision to explore in deepwater is taken. The whole supply chain has to change the way it operates and come up with innovative solutions to the deepwater/harsh environment problem.

DE REGT MARINE CABLES Just last year, the Wall Street Journal reported that leading energy companies including Chevron Corp, Statoil and BP had al invested in heavily in new technology designed for deepwater operation.

WeST Drilling Products AS, a unit of WeST Group, has created a robotic oil rig that it says will reduce drilling time by up to 50 per cent, Chevron has developed proprietary seismic-imaging technology that it says gives it a much clearer picture of what lies beneath the sea floor and BP is developing a set of new deepsea technologies called Project 20K™ to enable safe exploration at pressures as high as 20,000 pounds per square inch and temperatures as high as 350

degrees Fahrenheit.

But what do all of these projects, and the many others that surround deepwater projects, have in common? Just like any project; deep or shallow, research or production, renewable or fossil fuel based, they all need to be connected and this requires subsea cabling.

Away from the energy industry, submarine cables are an absolute necessity of the modern world, on par with global positioning satellites and sea freight. Over the next few years, new submarine cables are set to be required around the world - being deployed in both areas where cables are common, and broaching areas never before attempted.

Through 2016, a combined

annual growth rate of 9.87 per cent for the submarine cable market has been predicted by Research and Markets, a firm studying the trends of a number of sectors.

One of the leading companies in custom-engineered, specialty, dynamic or static cable solutions used in subsea applications is DE REGT Marine Cables, a Netherlands based supplier to the oil and energy, defence, seismic exploration and scientific industries.

HISTORIC TIES Managing Director, Claude Pelzer tells Total World Energy more about the deep history of this highly innovative and growing organisation that was founded in

PAGE 65

1912 by JF de Regt (senior) as a goldsmiths business.

“DE REGT started many years ago and after investment, the company moved into the cabling market. Interestingly, in 1991, DE REGT teamed with a competitor, Jacques, and became JDR and that went on for two decades going through various capital investors. At some point, interest came from Dutch industrialist, Fugro and they took over the

the complete Geo Survey division.

“Originally, DE REGT was operational in the seismic exploration and defence technology markets which ultimately looks at oil and gas at the bottom of the ocean and submarine systems and defence systems. Both are similar in that they are tow systems, based on a rake technique. Obviously there are big differences, specifically we look at seismic activity by towing

years, there is expected to be an increase in activity. In a recent report, the UK HSE suggested that there are 107 oil and gas plus 181 gas producing installations, located on 383 producing fields in 2014 with 50 new field developments planned across all sectors. And this kind of growth is not unique to the UK. This growth in offshore projects is something which DE REGT has witnessed, along with growth in other marine

Dutch subsidiary. This meant that DE REGT marine cabling section continued by themselves and JDR in the UK split off in 2011. Now, as of 2013, DE REGT has become part of Sercel, as part of the deal between Fugro and CGG to sell

various umbilicals behind vessels for marine acquisition companies.”

As activity in global offshore sectors grows, the demand for services from companies like DE REGT grows with it. In the UK alone in the coming three

based industries.

“For the last three years we’ve seen more action in our largest market, the seismic exploration market in oil and gas. We relate the largest part of our turnover, between 50-80%, to that market,”

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PAGE 67

says Pelzer.

“Next is the defence market which has always been quite stable. This involves working with large and prestigious original equipment manufacturers throughout the defence market.

“In the past we’ve focussed on these two areas, seismic and defence, and in the last few years we’ve also focussed on what we call oil and energy which is pursued by our mother company Sercel as a growth area so we’ve been putting the company’s knowledge and experience into this new area with new products and new technologies to cope

DE REGT products are used in a range of applications and as a leader in the design and manufacture of custom-engineered, dynamic and static cable solutions, the company can also maintain cables.

“We design and manufacture the key interfaces in your subsea infrastructure. We develop and deliver the essential links in your marine data gathering system.

“We will maintain them too - for the whole of the product life helping to maximise your business opportunities by meeting your operational goals,” DE REGT says.

And innovation is at the heart of product development with Pelzer

rigs so that you can see the benefit of a much lighter umbilical enabling the client to go to deep but not having to interchange parts which can be costly.

“We are trying to open up larger markets in oil and gas, especially in deepwater applications. In the near future, we might end up with projects for deep sea mining. If we go to an area with 5km water depths for a total system, if you roll it out with a lot of power being consumed at the bottom of the ocean then the umbilical and the system itself are areas where you will need to reduce weight in some way to make the system work. This is why we are trying to push the conventional methods out of the market and come with disruptive innovation,” he says.

As with most innovations, design and development takes time and DE REGT works closely with clients to make sure all specifications are met.

“Typically, there’s a number of alterations during the design phase.

Depending on the request and client specification, in the beginning there can be a lot of questions.

Sometimes, the client will have uncertainty about their own system and this is where we can jump in and think with the client to come up with a good solution.

“You have to consider many things including water depth, weight of the umbilical, weight of the systems, how does it behave in a certain sea state or certain area, and then come up with a full specification and design, which can go through several alterations, until

with demand from the oil and gas and the renewable energy markets so that we can come up with fit-for-purpose products which can go to harsh environments or polar conditions where we have deepwater situations,” he adds.

saying that new ideas are always being considered as the company tackles the challenge of deepwater applications.

“We envisage going to very deepwaters but keeping the systems on top of the vessels or

the client is happy to go ahead.

Then we build a prototype; test it, qualify it and then come up with a complete system for full production.

This can take anything between 10 and 30 weeks depending on the size of the project,” explains Pelzer.

LEADING PRODUCT RANGE

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DE REGT MARINE CABLES ON-GOING EXPANSION To create products and execute services that live up to the quality of the DE REGT brand, the company only works with highly skilled professionals, training them in the DE REGT way from the very beginning. This investment into people has allowed the company to grow both internally and in its preferred market places.

“From a design point of view, we look at bachelors, masters or PHD graduates; people with a strong education technically, electrically and mechanically,” says Pelzer. “The process starts with serious training production-wise so our people have a very practical approach.

They learn from others what the boundaries are and what the capabilities of the machinery are.

Then they get extensive training on cable design, termination and endfittings. They learn everything to do with cable design and this can take two or three years before people can call themselves senior. It’s a very specific approach to education alongside the education that they’ve already had.”

Away from development of the workforce, DE REGT has also been growing its physical footprint and now with additional offices in China and Germany, from its base in Holland, the company is continually innovating.

“Our base is our production and design facility in Holland. This is where we originated and where we have grown from. Today we have a facility that is four times as large as what it was in the beginning.

Looking at growth regions, we see China as a growth area and we found that a local presence was needed there. Along with our mother company, we have several entities that we can address throughout the world so this is good for us from

a R&D point of view. At our sales office in China we regularly meet with clients to ensure a very close relationship as China has a different culture so we have made sure we put in serious effort.

“DE REGT Germany was acquired last year and this is a whole new development which originated from the elevator business and we see a lot of benefit from pushing a new technology that we refer to as RiFleR (Rigid Flexible Rods) which could be the next generation of lightweight armour packages in umbilicals and deepwater equipment lowering and hoisting applications,” explains Pelzer.

As the business of DE REGT grows and the products and services on offer continue to develop, the company has to evaluate each opportunity and decide on whether or not its specialist offerings will suit each project.

“It’s very important that you know what you’re dealing with when it comes to your clients and your competition,” Pelzer explains. “You have to look at your own strengths and for certain projects it’s important to find out what your unique benefits are and in some cases you have to choose to say ‘no’ or say ‘yes, this is perfectly within our capabilities or with some modification or investment this could be worthwhile pursuing’.

“In any case, with any opportunity, you have to find out whether there is a solution or opportunity where you can step in. If you want to move in

a great benefit because clients may have a long lasting relationship with a competitor already.”

In the future, similar growth that has been witnessed over the past few years is exactly what the company is looking for. And with the development of deepwater projects, and the offshore energy industry in general, it seems as though there will be huge opportunities for DE REGT as we move towards the end of 2014 and beyond.

“We have to be realistic but we don’t set easy targets for ourselves,” the Managing Director says. “We want to reach out to the people we work with and discuss with potential partners what are the possibilities.

We are very aware of ourselves being one part of a larger system in certain market places where we want to grow. It takes a lot of investment but the sky is the limit for disruptive innovation and ultimately if you look at our growth, you can see that it’s pretty serious.

“We would like to grow massively in some areas because of the added value that we are able to deliver.

Of course all things need to be researched in the short-term so we can make informed decisions but we would like to see a trend of growth so that we can enter new markets besides the ones we have been in for the past few decades.”

And considering DE REGT is already a self-proclaimed ‘world player in marine cables’, if the company (and the industry) achieves the sort of growth that it is hoping for, it won’t be long before DE REGT is recognised by even more

a new market but you find out that your competitors have been active for many years, you definitely need to come up with an innovation that is disruptive or otherwise guarantee that you can deliver the same product but that often does not give

organisations as the worldwide industry leader and whenever one of the many planned offshore projects gets the green light, DE REGT will be there to provide the very best of custom-engineered, specialty, dynamic or static cable solutions

MARKET DEVELOPMENT

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Introducing the power of cooperation

Editorial: Rosie DeWinter

An important player in the European offshore wind market, Smulders has an impressive reputation within the industry for efficiency, cost reduction potential and its production facilities that has seen it involved in many high profile projects, including Eneco’s Luchterduinen Q10.

With continued success in the renewable energy market, the company reached a milestone earlier this year having received the largest order for the number of foundations in its history.

The specialised manufacturer of offshore foundations and towers, Smulders Group NV was first established in 1966.

high-grade constructions, the company’s product portfolio includes monopiles, jackets, high voltage substations and towers.

Headquartered in Helmond, the Netherlands, its core activities include the construction, manufacturing and supply and assembly of steel constructions.

Sub-divided in two divisions, wind turbine constructions and

Almost 20 years ago the company entered into the renewable energy market with the production of onshore towers, before it released the increasing potential and began expanding its activities in the industry with

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the production of foundations for offshore wind farms.

LEADING THE RENEWABLES MARKET Today, Smulders’ activities for the renewables market includes the fabrication of various types of offshore foundations and substations which has earned the company an impressive reputation for being an

SMULDERS GROUP organisation on an international scale and a market leader with a trusted and established track record.

Of course, over the coming years, the wind energy market is only set to rise with the manufacture of bigger and more efficient turbines and much deeper water offshore locations. To prepare for these changes, Smulders is looking to expand both its capacity and facilities, including the latest technological advancements and new foundation developments.

Smulders’ product portfolio is supplemented with onshore and offshore module construction of the High-grade Constructions division which produces offshore high voltage substations.

HIGH-GRADE STEEL CONSTRUCTIONS This second division, developing high-grade industrial constructions for both the onshore and offshore industry and for bridges, renovation projects and architectural constructions, requires a special and efficient approach due to their technical and often architecturally challenging nature.

Many of the designs for the above projects are complex with a list of extensive requirements to be met. Although often large and challenging, Smulders prides itself on its technical ability to complete these with efficiency and competency.

PRODUCTION FACILITIES Where Smulders manages to stay ahead of its competition is with its numerous subsidiary companies, helping with the many phases of a particular project. Many of the production processes are managed in-house and then divided between the subsidiaries. This not only guarantees meticulous and consistently high standards but ensures both time and costefficiency with a focus on safe working conditions.

Using a variety of locations, capacities and facilities, this has helped Smulders prepare for the production of foundations for the offshore sector and with the flexible setup of the centralised

PAGE 71

project organisation, this helps the company to provide a quick turnround on projects.

At the company’s production facility in Antwerp, Smulders manages many activities including foundations and towers assembled with prefabricators before they receive surface treatment.

The Hoboken facility has many specific characteristics, including a hoisting capacity of a 450 ton portal crane covering a surface of 60,000 m² and two 240 ton overhead cranes with a combined capacity of 480 tonnes. It also includes large production halls of 240 x 40 x 20m and 320 x 46 x 36m, high quality paint spray equipment and halls with controlled and conditioned environment and a storage capacity of over 30,000 m², within reach of the portal crane.

Additionally, the facility has the convenience of the connection of production location with an open river to the North Sea.

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AN IMPRESSIVE MILESTONE

“Producing its 1000th transition piece at the Hoboken facility, Smulders Projects will supply and install all the secondary steel and surface treatment needed, while Sif Group will supply the primary steel tubulars”

Earlier this year, Smulders Projects, a subsidiary of Smulders Group, received an order from Van Oord Offshore Wind Projects, together with Sif Group, for the delivery of 150 transition pieces for the Gemini Wind Farm.

Producing its 1000th transition piece at the Hoboken facility, Smulders Projects will supply and install all the secondary steel and surface treatment needed, while Sif Group will supply the primary steel tubulars.

This project also marks a milestone for Smulders Projects in that it is the largest order for number of foundations the company has received in its history.

The Gemini Offshore Wind Farm, located in the North Sea approximately 85 km from the coast of Groningen, currently comprises 150 turbines, all of which are four MW each. It will be one of the largest wind farms in the world and its results will more than double the number

of offshore wind turbines in the Netherlands from 139 to 283.

Iemants, another subsidiary of Smulders Group, will build the two offshore substations that will be connected to the turbines in collaboration with Cofely Fabricom and CG. The project is expected to continue at the Hoboken facility until the middle of 2015 and is the fourth project that Van Oord has awarded to Smulders Projects for transition piece foundations, highlighting the importance of efficient customer service to the company.

for offshore wind turbines.

Its biggest project saw over 1,000 towers manufactured for its onshore wind turbines.

In addition to wind turbine towers, Smulders has totalled over 900 steel foundations for the offshore wind turbine industry, including Thornton Banks with 48 jacket foundations for offshore wind turbines and a total of 80 monopile foundations for offshore wind turbines for the Dan Tysk project.

Smulders has also supplied the offshore transformer station to WPD’s 288MW Butendiek wind farm in Germany and the topside foundation to the Luchterduinen Q10.

Since its inception, Smulders has diversified into new and lucrative areas whilst maintaining a successful and

A SUCCESSFUL PORTFOLIO The Smulders portfolio is certainly one to be proud of and since its inception, it has installed over 2,000 wind turbine towers for both onshore and offshore wind farms, including Gamesa with over 500 towers for onshore wind turbines and the Bard with 34 towers

efficient service, encouraging repeat service and a reputation to match. With a full order book and many projects, both existing and new, in the pipeline, Smulders’ status as an important player in the European offshore wind sector has placed them in good stead for a very bright future indeed

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Engineering excellence

Editorial: Harriet Pattison

Operating for nearly two decades, MegChem has cemented its position within the oil and gas, petrochemical, mining and industrial markets, providing its clients with a turnkey solution. Offering a range of project services from concept design to basic design, procurement through to commissioning; Managing Director, August Zerwick tells Total World Energy that the future looks set to be an exciting one, full of opportunity‌ An engineering services company providing solutions to the oil, gas and power generation industry, MegChem has been in operation for

August Zerwick explains the company started out mainly focusing on its roots from the management buy-out, the complex brownfields

with the Helium Test Facility for the PBMR Project and working with ArcelorMittal in the modification and repairs on certain furnaces.

nearly 20 years, in which time it has built up a solid reputation across Africa and into the competitive international markets.

Originally founded in 1995 as a result of a buy-out from Sasol Technology, Managing Director,

Petrochemical environment. Before long however, it began to render EPC services to its clients, starting with Petrochem before diversifying and executing numerous projects, including gaining experience in nuclear power generation processes

Almost two decades on, MegChem has secured a niche market, managing complexities in EPC projects. Although these tend to be smaller, they are far more beneficial in helping to ensure the client’s plant operates efficiently and

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MEGCHEM the rewards tend to be far greater. As a result, larger and more competitive industry players are attracted too.

Complexities involved in projects such as these might cover stringent time restraints, live and unpredictable equipment or particularly harsh and hazardous working environments.

“We see our market as being a focused contractor rendering engineering services over various value contracting models in the complex brown fields maintenance environment,” Zerwick tells Total World Energy, “so we will do engineering consultation in terms of scoping the project for the client and then we have the ability to do a full turn-key execution of the project with various sub-contractors, giving the specific strategies.”

It is this turn-key solution which places MegChem on such a noteworthy pedestal amongst not only its clients but key industry leaders. Able to provide in-house engineering capabilities to the client involves conceptual engineering,

construction and commissioning, helping to ensure the day to day running of the project continues both smoothly and efficiently. Of course, this one-stop solution helps build the reputation of trust and professionalism MegChem continues to uphold today.

VALUABLE CORE COMPETENCIES Perhaps one of the company’s most successful project solutions to date is 3D laser scanning: “What you’ll normally find in our environment is that you’ve got to integrate with existing operating plants and normally you’ll find that the plants could be in operation which brings safety risks to the table. Additionally, you have challenges in terms of reversed engineering and in terms of documentation that’s not necessarily available.

“So you have to finger print the plant in what we refer to as at ease frame work and here we use, with

high success, laser 3d scanning,” explains Zerwick.

“Over the years, we’ve developed it as a tool to be able to take a very accurate finger print of the plant within certain tolerances. So using that you can aggressively engineer solutions that consider the present operating environment with due regard to safety, optimising services to the likes of scaffolding, installation modifications and the whole execution of the work.

“These core competencies that we’ve developed over the 20 years are adding value for the client.”

Over the past two decades, MegChem has continued to expand its range of services and ventures into new markets. Working across Africa in Angola, Nigeria, Botswana, Mozambique, into the Middle East and supporting a number of Australian enterprises, Zerwick explains the company is now focusing on geographical expansion with its highly innovative 3D scanner.

“We see that the 3D laser scanning

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ability gives you the opportunity to bring a dimensional accurate plant to your home or office, where you can with certain costing and execution strategies, unlock value. We can then accurately re-engineer or modify the design and interact with a fabricator and clients to support in executing the project.

“So in terms of markets, we are looking to increase our footprint in Africa as we’ve got a market there in terms of energy. We’ve identified this as a sweet spot and we want to continue

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to support clients there in innovative energy projects,” Zerwick adds.

Now a prominent player in the engineering market, Zerwick attributes MegChem’s exponential success to the support of its clients and ability to offer a no hassle turn-key solution.

To maintain this industry position, Zerwick explains MegChem must remain innovative: “We must focus on how we can manage risks in terms of execution, not comprising on integrity, be sensitive and meeting the schedule objective so we are a no surprise contractor to our clients.”

“Our core competencies, we like to think, include helping to develop our engineers in an environment to support clients in day to day operations. We have all the designer engineering tools and combinations

as well as software to go that extra mile,” explains Zerwick.

A POSITIVE WORK & LIFE BALANCE Of course, behind every highly innovative and successful company lies a team of hard working employees.

Key to its success, Zerwick explains that training, development and opportunities to grow are vital in building a team focused on efficiency and customer satisfaction.

“Challenges are important, especially from an engineering point of view as our employees really have to think and keep on their toes if they want to be successful engineering contractors.

“From a training and development point of view, we continuously challenge ourselves. We have a multi set of skills to help our staff understand the needs of the client and engage with the client in a framework of support, helping to build confidence and trust with the client,” explains Zerwick.

Of the 336 employees, 90 of these are graduate engineers.

MEGCHEM Zerwick explains: “The professional, approval management of integrity is crucial because we work in high value, high risk operating environments, so you have to make sure you address those risks so we are focused on ensuring we get it right.”

Outside the working environment, Zerwick explains the company’s importance of a work/life balance: “We have leisure time, an annual golf weekend and a big cycling club which many of our employees participate in.”

Involved in the South African Mechanical Engineering Institute, Zerwick explains MegChem is active on various university advisory boards, interacting on the academic side. The company also has an engineering forum where whole days are spent on engineering case studies and projects that have been completed which are then shared with clients.

Zerwick adds that MegChem also supports university students in studying vocational subjects for engineering and open days for schools are held to help promote engineering. “We also have smaller more niche projects on the go to further encourage engineering and the profession,” explains Zerwick.

SUSTAINABILITY MEASURES Increasingly important to South Africa, Zerwick explains, to be recognised as a sustainable company is a vital aspect of MegChem’s business mandate.

“On each and every project that we do, we have an environmental and health and safety plan and we instigate management processes, requirements and philosophies to make sure we follow the rules.

“In terms of the business, sustainability is very prominent and we are now looking at recycling

paper and energy efficient measures in our office building.”

A FUTURE OF EXCITEMENT AND OPPORTUNITY Looking to the future, Zerwick believes it to be a very positive one for MegChem: “We have just completed a make-over of the business where we’ve appointed a number of new line managers and we’ve also remodelled the business to ensure it is even more client driven.

“We’ve given the business managers the mandate to structure their business division on the rules of that specific industry segment, so we’ve got more freedom in terms of strategies for different plant environments and

business sectors.”

In terms of expansion, the company is looking to the petrochemical business to build relationships with other clients and other markets in both South Africa and the Middle East. Moving further afield, Zerwick explains: “We’ve done work in Australasia and there are opportunities in America where we can use the 3D laser scan to support the guys there in terms of resource capacity.

“So excitement and lots of opportunities ahead. I think we’ve developed the toolset that puts us in a position where we can aggressively extend across borders, both our services and skills in the complexities environment,” Zerwick concludes

WORLDWIDE LEADER IN

COMBUSTION &

ENVIRONMENTAL SOLUTIONS

Zeeco designs and manufactures industrial combustion and pollution control technologies for the refining, petrochemical, production, power and pharmaceutical industries. Zeeco product lines include ultra-low emission burners, gas and liquid flaring systems and hazardous waste incineration.

Contact Heaton Valves Africa for information on Zeeco Equipment.

For more information contact: clintonparsons@heatonvalves.co.za / williamkennedy@heatonvalves.co.za Gauteng (Head Of f ice) Tel +27 11 418 4800 | Cape Of f ice Tel +27 21 555 2211 Kwazulu-Natal Of f ice Tel +27 31 902 8241 | www.heatonvalves.co.za

PAGE 77

Project management expertise

Editorial: Tim Hands

A group specialising in the design and execution of complex industrial projects, Entrepose Contracting’s expertise spans the oil and gas, general energy and coastal operations industries, with a particular focus on the developing of project management expertise and the handling of projects in sensitive environments.

The Entrepose Contracting Group’s unique bank of knowledge has been steadily accrued throughout its near 80 years of operation across the

are broken down into six broad headings.

Entrepose Projects covers the engineering, construction and

pipeline laying and able to join in its maritime works activity through the complementary activity of the Geocean subsidiary.

energy markets. Widely renowned for its expertise in designing and carrying out industrial projects right through to their completion, the company works with transport, processing, storage and drilling, in addition to delivering turnkey projects. Its areas of focus

commissioning of oil and gas- related projects, as well as the storage of liquid hydrocarbons, industrial gases and natural gases.

The group’s pipeline activities are taken care of by its 2007 acquisition, Spiecapag, a world leader in onshore

Drilling is undertaken by Cofor, specialists in onshore deepwell drilling as well as deep sea sounding, while its presence in 30 countries lends Geostock firstclass credentials in design, project management support and operation

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ENTREPOSE CONTRACTING of underground storage facilities in France and abroad.

The final aspect, Entrepose Services, has recently been bolstered to now include support in logistics, transport costs and regulatory procedures, alongside control of the complete supply chain. “It’s a network of sourcing offices throughout the world,” explains Business Development Director, Jacques Menochet of the procurement division of the company.

“We have offices in Houston, Paris, Dubai, Singapore - among many others - which gives us an excellent coverage and allows us to offer to our customers the parts they need at the best price and in the best sourcing location.”

ENTREPOSE HISTORY “The first use of the name Entrepose was in 1935,” details Menochet, “working primarily in France. The

international markets were targeted around 1966, laying the first pipeline in Iran, while in 1982 the company merged with Grands Travaux de Marseille, a renowned civil contractor in France, before GTM then merged with Vinci in 2000. Following various reorganisations of the business, Entrepose Contracting was created in 2001, with next month bringing the 13th anniversary of the oil and gas project in Algeria which Entrepose held at the time.”

2005 was of notable importance in what is a highly decorated timeline for the company, seeing it debut on the stock markets in Paris. “We were able to make some acquisitions with the money that was raised through this move,” explains Menochet, “including the offshore division which we today know as Geocean, in 2006. This was joined in a similar fashion by Spiecapag, the pipeline division, in 2007. Most recently,

we completed the acquisition of Geostock in 2012, which gives us an underground engineering and management company. This completes our six business lines, with Entrepose Projects really representing the original contracting company through the design and construction of production and treatment plants and a speciality in LNG Tanks.”

Among Entrepose’s most important recent developments has been its decision to, in a sense, ‘streamline’ its operations, and so bring together in a much more synthesised way its various subsidiaries, under a more cooperative umbrella. “The point is not so much to get all of the companies working under the same procedures, because each company has its own characteristics - Entropose Projects is very much geared toward complex projects for processing plants, for instance, while the pipeline division is a completely

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different business. What we can streamline, however, is the project management that we are putting in place. We are trying to make universal the people and procedures we have in this respect, and we can also try to align the business of HSE procedures, as well as the commercial development of the business.

“We have a lot of commercial people working for the company,

Entrepose’s collective conscious, among them a significant contract in Iraq for the construction of oil storage tanks at Tuba, as part of the West Qurna-2 Project Development for Lukoil, worth a total of around US$61 million. Its globally-recognised expertise in the construction of storage tanks sees Entrepose Projects take the role of project leader, with Dominique Bouvier, Entrepose Contracting’s former

with this contract, the opportunity for Entrepose Projects to enter the promising Iraqi oil and gas market.”

Also notable in the company’s development plans are its Wheatstone project in Australia, comprising two LNG storage tanks with a capacity of 150,000 m³ each and two condensate storage tanks with a capacity of 120,000 m³ each, and the construction of a 450 km gas pipeline in Papua New Guinea.

and this way they are able to support each other and enjoy a very good relationship with the client.”

Chairman and CEO, describing its importance as the contract was awarded back in 2012: “The signing of this contract reflects the strength of our knowhow and our expertise in the construction of storage tanks. We are also extremely delighted to have,

“The Papua New Guinea pipeline project is now complete” explains Menochet. “It was our very last project and has been a very successful one too, and we have also completed the Tuba project for Lukoil. The Wheatstone LNG Tank

PROOF IN THE PROJECT There are a number of notable projects currently at the forefront of

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ENTREPOSE CONTRACTING project is still ongoing, and progress is around 30% and proceeding well, with no issues so far. Also very important for us is the four LNG Tanks that we have to build in Russia, alongside an ongoing pipeline project we have in Bolivia. The pipeline division is also working on a small project in Australia, where we have regular business, and in West Africa too.”

The company’s three main business lines for these significant EPC contracts have been identified as Spiecapag, for its dealings with pipelines, Geocean, for offshore works, and Entrepose Projects.

“These three companies together account for more than 70% of our revenue,” explains Menochet, “so we are really focussing on these EPC contracts - Spiecapag in particular in the last two or three years has been one of the biggest contributors

“We are looking to move into the Russian market and to develop projects in East Africa”

in this sense, because of the huge contracts that we have been able to secure.”

Despite an already impressive geographical covering, which sees Entrepose have dealings in a host of the most important locales worldwide, Jacques Menochet is still able to pinpoint further areas which the company is targeting in its future plans.

“We are looking to move into the Russian market, absolutely, and we also look forward to developing projects in East Africa. These are primarily onshore, and there is also the possibility of liquefaction plants in Mozambique and Tanzania. Brazil in itself is a very difficult place to begin operations, with its very deep waters, but if we can find a niche over there then this will be among the most important locations for us moving forward.”

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The professional module fabrication specialists…

Editorial: Rosie DeWinter

The leader in the module manufacturing industry of China, BOMESC is an international player with projects in Brazil, Australia, America and the Middle East. Placing a high importance on quality control management and client efficiency has earned BOMESC a welldeserved reputation and position as an industry leader you can trust…

Headquartered at the Tianjin Economic Development Area in China, with 500,000 m2 Fabrication yard in Lingang District, BOMESC offers module building services to the offshore oil and gas industry, including

the Middle East to Europe and Africa to Australia. Delivering products to international clients, including ExxonMobil and Bechtel, BOMESC has achieved a reputable EPC status within the industry, cementing its

was looking towards the international market. To warrant its presence in the international market, the company ensured it adhered to the HSE International Standards and set up its own quality standards according to

LNG and mining projects.

With engineering, procurement and construction services, BOMESC provides fabrication of topside modules, living quarters, e-house modules and special steel structures to industries all over the world, from

status as a professional module fabrication company.

Founded in 1993, BOMESC is a private company. The Deputy Manager of Business Department of BOMESC, Martin Liu Hongyan, explains from the very beginning, the company

international levels to help position and qualify for the international and highend client base.

Today, Mr Hongyan explains that more than 90% of the company’s projects are based internationally with the remaining few based in China.

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BOMESC HSE MANAGEMENT Safety continues to remain a top priority for BOMESC and as more improvements and developments are made both in the industry and within the company, it is imperative that safety standards are met. Mr Hongyan explains that with the help and guidance of the world’s largest independent exploration and production company, ConocoPhillips, BOMESC has become a leading force in HSE Management in China.

“At the very beginning, we worked to the best of our ability to be qualified to be a high level client company.

Thanks to the help of ConocoPhillips, BHP Billiton and Chevron we grew up and we learnt a lot. Working on the Penglai 19-3 project, we began to understand high level international HSE Management, so we learned, changed and improved our strategy.”

The company maintains the same safety standard for all the projects it is involved in and upholds an impressive safety record with zero Lost Time Injuries (LTI) since 2012. Mr Hongyan explains that BOMESC achieved more than 4.5 million man-hours without LTI

for the ConocoPhillips Peng Lai 19-3 project and more than five million manhours without LTI on the Wheatstone Project.

based around HSE Management so this keeps the standards of our company very high.”

AHEAD OF THE COMPETITION

“It is a step by step process and at each step our management have simply made the right decisions” This outstanding record of achievement in safety, quality and scheduled delivery times has helped to promote BOMESC as the company of first choice for many reputable clients.

“As we are such an international company,” Mr Hongyan explains “our international client base is heavily

With the recognition of fabrication markets in China, more and more projects come into Chinese market for engineering, fabrication. Focusing solely on the building of modules, Mr Hongyan explains that despite a competitive industry, the company doesn’t face much competition as it only operates and delivers a small portion of large projects.

“BOMESC is only concentrating on modularised structure. All BOMESC’s facilities are set up for modularized structure fabrication. We may not be able to cover all kinds of products the market required. But we will be the specialist for modularized structure.

“I don’t feel at this stage we are facing competition, most of the Qualified Fabricators in China are having enough work to keep themselves busy” explains Mr Hongyan, “and the China prices and resources are currently at our advantage.” In this instance

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then, providing only the modularized product is beneficial to BOMESC as companies that offer the full package are more prone to competition.

With its own qualified fabrication yard, just 150km from Beijing, BOMESC currently owns and operates a 500,000m² module building yard where single piece modules with a weight up to 20,000 tons can be built and transported out.

With its specific module fabrication yard and deep water jetty, BOMESC is placed in high esteem by many high-end customers across the world. The open jetty allows access to the open water and at a depth of 12 meters and 14 meters, there is no congestion for the transportation of products which are loaded out.

Helping to place it in a prime industry position, the company is also allowed, with government approval, to operate this yard on a duty-free-zone basis for all its international projects.

With the arrival of the 400,000

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“In the near future, FLNG will be the target for most of the high level module fabricators and we want to be part of it�

tonne Yamal Project to China earlier this year, Mr Hongyan explains BOMESC have reserved our capacity for our future strategic projects, such as FLNG modules and shale gas.

Many of the Chinese companies will be busy on that project for the next year or more.

What helps to further set this company apart from its competition is ensuring it only undertakes projects which it can manage both efficiently and complete to the best of its ability.

SETTING THE STANDARD As the leader in the Chinese module manufacturing industry, the company continues to provide these services to international resources companies and in 2011, it entered into the oil & gas market when it was awarded the construction of the OSBL modules for the Wheatstone LNG project.

Located in Ashburton North in Western Australia and operated by

BOMESC Chevron Australia, Wheatstone LNG is a liquefied natural gas plant which is still in progress and will have two LNG trains with a total capacity of 4.3 million tonnes each per year once completed. The project’s services includes shop engineering, procurement, construction and commissioning and load out, which will help to satisfy stringent requirements of the world energy giant, Chevron.

Of course, the last 11 years have been a learning curb for the company and with each project they have been involved in, new skills and lessons have been taken on board. With this in mind, Mr Hongyan explains BOMESC is now feeling confident about branching further into the FLNG market.

SUCCESSFUL INTERACTION

Dalian CSIC New Materials Co., Ltd. (CSICNM) is a high and new technology company under the control by CSICNM is committed to research of new materials and technologies for ship coating and metal surface treatment.

Dedicated to energy saving, high efficiency and green shipbuilding, CSICNM provides customers with high quality, cost-effective products and services.

The steel shot is used for sand blasting

Our product advantages 1. The steel shot to make the ship section better meet the PSPC standard 2. High production efficiency 3. Low loss 4. Long lifespan 5. Low comprehensive cost 6. Little dust green environmental protection 7. Not crushing, will only become smaller

Staying grounded, BOMESC reiterates the importance of sticking to its core beliefs, namely to serve its clients in a professional and efficient way: “We are very lucky to have a lot of high level clients that come to talk and help us to solve their problems,” explains Mr Hongyan. “For most of big projects in China, the concept of Modularization is not well improved, and this is also the reason we cannot take fabrication projects from China market.”

As with so many companies, BOMESC is intent on providing a greener service and ensures that each project will generate sustainability and benefit both the community and the client. Additionally, the company practises environmental sustainability by reducing solid wastes, energy

we don’t know so ask the client for help. We should never work with assumption.” Approaching each new client with this kind of attitude makes it easier for us to communicate with our clients.”

Asked what he thinks the company’s long running success can be attributed to, Mr Hongyan believes it is down to the well thought out decisions made by the Board:

and process modules and with full experience of FPSO topside modules, we ventured into the mining and LNG industries and delivered more and more products to our clients in time. It is a step by step process and at each step our management have simply made the right decisions,” he explains.

Looking to the future, it looks set to be a bright one for this international

consumption and concentrating on environmental protection.

With each project, Mr Hongyan explains that it is looked at with fresh eyes to ensure the best possible service and delivery: “We talk to our personnel: ‘We do not know what

“At the very beginning we only built small skids but we took a chance to build a living quarter for a domestic client very early on and from there, we started building living quarter for international clients. We then had the chance to build e-house modules

company: “Currently we are building the modules for LNG and the topside modules for FPSO,” Mr Hongyan explains. “In the near future, FLNG will be the target for most of the high level module fabricators and we want to be part of it.”

Office ADD: No.16, Zhuqing Street, Zhongshan District, Dalian, China 116001 Tel: +86 411 82810655 Fax: +86 411 82810655-8004 Website: www.csicnm.com

PAGE 85

An energetic community project Editorial: Roland Douglas

The 129MW Eneco Luchterduinen wind farm will be located 23km off the coast between Zandvoort and Noordwijk cities in the Netherlands.

A state-of-the-art project, Eneco Luchterduinen is pushing the boundaries of wind farm construction but it is perhaps the innovative engineering solutions and involvement with the local community that have been the some of the major success of the project so far…

When completed in 2015, the Luchterduinen offshore wind farm will supply green power for nearly 150,000 households. Currently being constructed

by Dutch company, Eneco and Japanese organisation, Mitsubishi Corporation, the

beach and prepared for connection to the onshore cables which will take green power from the wind farm to the grid.

Total World Energy recently spoke to Dennis Sanou, Project Director at Eneco Luchterduinen and he says that

beach to the OHVS (offshore high voltage station) foundation. That has been installed and pulled in and now hangs off at the OHVS although it still needs to be trenched across its full length.

“We had a challenge with the remnants

wind farm will consist of 43 Vestas V1123.0 MW offshore turbines located 23km from the beach at Noordwijk, in the Dutch North Sea. In October, an important milestone was reached as the power cable from the offshore substation was bought to the

the installation of the cable is almost complete but the team had to come through challenges from the weather as the cable was brought ashore.

“The successful milestone completed recently was the complete installation of the export cable, about 23 km from the

of Hurricane Gonzalo which hit our site last month while we were laying the last meters of cable and we just managed to safely secure and lay the cable on the seabed,” he says.

International contractor specialising in dredging, marine engineering and

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ENECO LUCHTERDUINEN offshore projects, Van Oord, is the main contractor for the construction of the wind farm and the company used the vessel Ndurance of Boskalis for the cable lay as its own vessel was working on the infield cable of the wind farm.

Ndurance is 99 metres long and arrived at high tide, held in place with six large anchors on the sea floor and at the beach. It was important to complete the cable installation before the next high tide so the vessel could refloat. Fortunately, Gonzalo did not cause too much trouble and the operation was a success. “It did not impact us too much, no more than 30 minutes,” says Sanou.

A HISTORIC PROJECT The history of the Eneco Luchterduinen project goes back to 2008 when the application for the wind farms permit was started. In 2009 the application was given and over the next four years, changes were made and all legal and administrative processes were followed, until July 3 2013 when the permit became irrevocable.

Sanou began working on the project in 2012 and he says that design was the initial concern.

“I am responsible for the installation of the Luchterduinen offshore wind farm.

I came into this position after financial close which was at the end of 2012.

“We started at the end of 2012 and one of the first things you need to start

with is detailed design which took more than a year. Today, there are still some minor details to sort out because the design takes some time.

“In 2013, we still had an appeal to pass through certain authorities as there was an issue raised by some of the beach restaurants who objected to the presence of the wind farm but this turned out to be positive for us.

The decision was in our favour and we could go ahead with construction,” he explains.

This is not the first offshore project for Eneco; far from it. In another Dutch wind project, the company was responsible for the construction of the Princess Amalia Wind Farm, a 60 turbine wind farm, 23 km west of the village of Egmond aan Zee in the North Sea. Sanou also worked on this project, albeit for a different organisation, and says that experiences there have been beneficial for Luchterduinen.

“At that time I worked for Van Oord, the company that installed the Q7 Princess Amalia. Lessons learnt on that project are definitely incorporated in Luchterduinen for example, with the OHVS design and construction where the same joint venture building the OHVS on our project was present for Princess Amalia so knowledge is being kept on board. That project was years ago so some experience has left the company but now we have an excellent

new team working on Luchterduinen,” he says.

INNOVATIVE CONSTRUCTION What makes this project one of real significance for the offshore wind industry is the fact that new design elements with regard to its foundation piles have been used.

“At the moment, we are extremely delighted to share the exceptionally good news that we have all of the foundations in, well before the target date of 31 December. We are talking about 44 foundations, 43 are WTG (wind turbine generators) and one OHVS foundation. We are extremely happy that that has been successfully done although we are still waiting for some AS-built reporting from the main contractor but it looks ok,” Sanou explains.

“A major innovation improvement has been applied to the design and installation of the monopile foundation. We are working with a raised flange connection, without a transition piece. We are hammering the pile directly on the flange that is being used to connect the tower which is risky for sure but we have put so much engineering effort into that and we are extremely happy that this has turned out to be successful. This is definitely a major cost reduction that has been proven

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to be successful at Luchterduinen,” he says.

“There was another wind farm, Scroby Sands in the UK, where there was hammering on the flange but they still used a transition piece to overcome the idea of a direct connection between the flange that has just been hammered and the lower flange of the tower. We are now the first project in the world that is hammering on the actual connection that is going to be made. Everybody was afraid because the connections need to be within strict parameters and we are hammering with lots of force on these connections but everybody knew, once this was possible, you could establish great cost savings.”

Away from construction, this project has been pushed through by two extremely strong and experienced partners, Eneco and Mitsubishi Corporation, both with a focus on sustainability, which makes it a logical step to build also a sustainable relation with the local stakeholders and communities in all phases or the project, also during the complete operation of 20 years.

“There is not a project in the world that runs flawlessly, you always have challenges and problems,” says Sanou.

“We made a lot of effort with public consultations, trying to listen to local people who live in the community, understanding what sort of problems we are creating for them. There is also an eight km land cable (constructed by Eneco daughter company, Joulz) that

happy there.

“Joulz’ work on the cable started in September 2013 and was completed in July this year and now the only work is the connection of the onshore and offshore cable on the beach in Noordwijk, which will be ready in November or early December.

“There are always a couple of people that are not happy with the wind farm because, on a good day, you will see it, even at 23 km but it has been very limited.”

In this project, the figures are perhaps some of the most important numbers for the community and often developers can overstate the eventual output of their projects but with Luchterduinen, Sanou says that the figures of green power for 150,000 homes are fact and not just selling points.

“That is fact. It’s not a wish, it’s a fact – we know the specifications of the machines, we know what they can do – these are proven machines working in Sweden, UK, Belgium etc., it’s a proven Vestas turbine. Its three megawatt, it’s not the biggest, there are lots bigger, but it’s a proven concept,” he says.

Perhaps the success of the project so far can be put down to effective management. The Eneco/Mitsubishi Corporation partnership has been a pairing that has seen two companies with similar cultures work together towards the same vision.

“When I joined the project, I had a celebration in the first week which surprised me because the celebration was for the completion of a project and I though ‘what project is that?’ because I’ve only just started for Luchterduinen

we like openness, we like to talk about everything and this matched very nicely with the culture of MC. “Eneco provides personnel and knowledge and MC provides funds, half of the CAPEX and OPEX, but both companies are actively involved in the decision making for this project,” explains Sanou.

And even the partnerships that have developed with subcontractors have been very successful; take the relationship with Van Oord for example: “It’s a very professional company,” says Sanou “they have proven themselves in the past, it’s a big financially stable company and that is important for a company like ours. There are differences in opinion, at the end of the day we want a wind farm and the contractor wants to get paid, but there has never been a conflict that cannot be solved and we have proven that by being on schedule and according to contract specifications.”

was installed and that runs through a densely populated area. As an energy

but apparently this was the project called ‘looking for a partner’. We had

beach landing of the export cable.

“It’s not a name that we came up

selling company we were concerned about the impact on the people so Eneco and Joulz have put a lot of effort into community stakeholder management, public consultations and that has resulted in no further objections from the inhabitants so we are extremely

an accountant, KPMG, which helped us finds an equal partner with an equal culture, focussed on renewable energy and after some discussions, it turned out that Mitsubishi Corporation (MC), coming all the way from Japan, matched very nicely with us. We like transparency,

with. We had a competition in the community with the local people, as one of the ways to remain in contact with them, and we asked them for a good name. We had a lot of good suggestions and we have ended with a historical name from one of the residents of

ENERGETIC PARTNERS

PAGE 88

A COMMUNITY PROJECT But perhaps the ultimate success for this project has been the way that the developers have managed to successfully work with the local community, in innovative new ways, to result in no real objections with the onshore cable, and even upliftment for the surrounding area.

Sanou says that the local people have been involved in every process of this development and construction, and even the name, ‘Luchterduinen’, is a result of community involvement.

“Luchterduinen is the historical name of the dune area at the location of the

ENECO LUCHTERDUINEN Noordwijk who won the contest coming up with the name Luchterduinen,” he says.

And involvement with the community is not something that is set to last only for the construction period of the wind farm. Eneco hopes that it can remain in constant contact with the community throughout the operational life of the wind farm and as such, is looking for ways to involve people. A result of the company’s desire to involve people is the Eneco Luchterduinen Fund, something which will help develop the community even further.

“We are not only building a wind farm, we are the neighbours for the next 20 years for the local environment and that is an important approach for Eneco Luchterduinen. That is the reason why we have put a lot of effort into building the relationships through consultations etc and also by inviting local people when we celebrate for example, with

the first drilling of cables, or when the offshore cable reached the beach,” says Sanou.

“We felt that it’s very important to be a good neighbour for 20 years, through the operational time of the wind farm so we created the Luchterduinen Fund which is allocated to project ideas every two years where we put in €90,000 and we just started the first round, inviting all of the inhabitants of the four coastal regions; Noordwijk, Zandvoort, Bloemendaal and Katwijk, to come up with ideas; sustainable ideas or ideas to make the coast a better place to stay, and we’ve had a great response. It’s exciting to see what people have come up with, we have had a few already and are open to more ideas until the end of November and then we’ll make a selection and vote, with the community, as to which idea should be realised.

“To give an example, electrical bicycles are becoming very popular in

Holland so I can imagine that people may request connections on the boulevard so people can recharge their bicycles. Or maybe there might be a request for solar panels on the roof of the municipality building; it’s all going to be related to sustainable energy and events to promote the coast and make it a more exciting place to stay,” he says.

This, along with the success of the wind farm, will hopefully result in a positive response over the coming years by as many local residents as possible, and also from the energy sector across the Netherlands but Sanou reminds that there is still much work to be done.

“We are not there yet, we are only half way. We still have to install all the turbines. The contract we have with Van Oord includes them making available a jack-up for Vestas to install the turbines,” he concludes.

Joulz High Voltage Partner in Energy Solutions

— Joulz is proud to be partner of Eneco Luchterduinen in designing and building the high voltage cable connection between beach pit and TenneT’s Sassenheim substation and related 150kV substation works for Eneco’s offshore wind park Luchterduinen.

For more information on designing, building and/ or maintaining high voltage connections and installations: Kerem Kaplan, kerem.kaplan@joulz.nl.

• Energy• infrastructures •—

PAGE 89

Aluminium offshore oil and gas expertise from Poland

Editorial: Christian Jordan

Aluship Technology is Poland’s leading offshore oil and gas engineering construction company, building complex facilities for big name energy companies from around the world. Chairman and Founder, Goetz Linzenmeier tells Total World Energy more about the on-going growth of this innovative and exciting organisation…

When you think about the global offshore oil & gas industry, you might

mind before expertise in offshore oil and gas. But one business, based in Gdańsk

engineering and construction of offshore facilities, mega yachts and general

think about countries like Norway, France, Holland, USA, UK, Australia, South Korea, Brazil or Singapore as some of the big name players but what do you think when you hear Poland?

Perhaps Polish exports like vodka, Chopin or Pope John Paul II come to

on the Baltic coast, is looking to change that and is currently proving that Poland has excellent capabilities, knowledge and facilities for production in the oil and gas, maritime and civil engineering industries.

Aluship Technology specialises in

vessels and also repair and conversion and civil engineering, with a focus on working with aluminium.

The company was founded by Goetz Linzenmeier, a German whose interest in the maritime industry sparked the formation of Aluship Technology, 24

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ALUSHIP TECHNOLOGY years ago.

“I started my activity in the maritime aluminium welding construction industry in 1990 in Hamburg and I started to build one-off custom designed sailing yachts. It was nice but labour intensive, and at the end of 1993 I started to move the small company to Poland and Gdańsk where I found the perfect place with skills, knowledge and history in similar industries.

“I further developed the company, training people and growing from a small workshop to an industrial company over the last 20 years. Now we have over 170 permanent employees, we own a four and half hectare plot in the harbour of Gdańsk with a 10,000m² production hall and a 3500m² administration, engineering workshop and we have a very well organised ISO 9001 certified business with independent quality control, high health, safety and environmental standards and very efficient production process flows.

“With quality and value for money from the client’s point of view, we are

well regarded giving very high quality, always on time and being pro-active with short response times.

“In the 90’s, labour costs in Poland were significantly lower and with one off custom designs, which were very labour intensive, it became commercially unviable in Germany so I had to make the decision to move the operation to a country with lower costs but with skilled people and long traditions and Gdańsk was the perfect place,” Linzenmeier explains.

And over the last two decades, the company has grown to become extremely well respected across Europe and in international markets and Linzenmeier is happy with the progress that has been made.

“I was a passionate sailor and because of that and other reasons I decided to start this entrepreneurial adventure and I do not regret it,” he says.

OIL & GAS Aluship began working in the offshore

oil and gas industry after great success with yachts and other vessels and the company’s initial contract in this new industry came from a Swedish company after Linzenmeier decided that the company should diversify in order to grow.

“Our work in oil and gas started in 2006 because of my intention to diversify our activities into three distinct areas; special ship building, the oil and gas industry, and mega yacht constructions. The first major project was for two big stair houses for Pharmadule Emtunga, now Apply Emtunga, in Sweden,” he says.

Success with its early projects in oil and gas has seen Aluship move onto bigger and more complex projects and the company is currently working on its most prestigious offshore project to date – the Gina Krog project from Total in the Norwegian North Sea. “In 2010, we proceeded with permanent special oil and gas constructions for rig related enclosures for filtration units, special technical

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vehicle is to translate the weight saving into additional payload and aluminium is the most profitable material for ship construction when it comes to this and if you have a fast vessel, you need the weight saving to meet the top speed with less energy,” he says.

enclosures, enclosures for gas turbines and anything else that could be built in aluminium,” says Linzenmeier. “We always aimed for larger structures and today we are engineering and building aluminium accommodation modules for Apply Leirvik, for their Gina Krog project where we are building a big living accommodation structure including detailed engineering and we are happy to have the Apply Group as another strategic client in our portfolio as we have Oceanco in the mega yacht field and Fjellstrand AS in special ship building where we recently delivered the zero emission ferry, Ampere 1.

“The current Gina Krog project with Apply Leirvik is one of the most prestigious jobs we have done in the oil and gas industry. We started construction last month and it shall be delivered in May next year.”

And Aluship’s focus on aluminium makes the company stand out from the crowd in the European market as there

also more or less unique in our potential and size regarding projects we can deliver.

There are very few in Europe who can deliver big living accommodations or very large mega yacht super structures or large ferries like we can. In engineering, production, facilities, capabilities regarding project management, and handling of complex documents we are quite unique,” says Linzenmeier.

And even with the reported shift in attitudes in the offshore construction industry, with many big name energy companies looking to China for building services because of its cheap prices and skilled workforce, Linzenmeier is not overly concerned with competition saying the company’s aluminium work and reputation for quality are strong.

“For our company directly, the Chinese are only marginal competitors right now.

“We only see this at the borderlines of the market. It’s more concerned with big projects like entire rig construction and platform building. We have seen in the past that when European companies order products from China, very soon after delivery, that product will arrive in a European shipyard to correct mistakes and improve quality so if the saving is worth it, I don’t know.

are many shipyards and engineering companies will great capabilities but not many who use aluminium as a predominant material.

“In our complex service as a supplier of aluminium structures which includes engineering, we are quite unique. We are

“We are not a shipyard; we are a supplier to shipyards and big oil and gas companies. Aluminium is a very versatile material and in shipbuilding as well as oil and gas one important thing is not just weight but centre of gravity. The ideal situation for a ferry or commercial

young talent from a technical point of view and that is why we are working with the technical university in Gdańsk to look for young talented engineers,” he adds.

Gdańsk University of Technology has faculties covering electrical and control engineering, civil and environmental

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BUILDING A STRONG FUTURE Aluship is a growing company and Linzenmeier is looking to continue building on what is already a strong workforce by investing in training and development of talented local people as well as opening offices in strategic locations in Europe, in areas with a connection to the offshore oil & gas industry.

“We will open an office in Aberdeen in the UK at the beginning of next year together with an agent and we are also interested in opening more offices not only related to oil and gas but also our other business sectors in the future,” he says.

“We have interesting stories in our workforce; there are some people who were with the company 20 years ago and who remain here today.

“The challenge is recruiting qualified staff, therefore Aluship Technology is one of the most active companies in the north of Poland, not only in advertising for staff who are active in the industry, but also in basic education of young people, developing in-house education programmes, cooperating closely with welding schools and also closely cooperating with the chamber of commerce and technical schools to support them and help develop programmes which are more focussed on our activities. We want to work with

ALUSHIP TECHNOLOGY engineering, mechanical engineering and ocean engineering and ship technology among other subjects and could help to create an extremely capable labour pool for Aluship.

ALTERNATIVE ENERGY In an important development for the future, Aluship recently celebrated the delivery of its latest vessel, Ampere 1 to Norwegian ferry operator Norled.

But this is not a normal vessel, this is the first of its kind in the world, powered completely by electricity.

“Ampere 1 is an 80 meter, fully battery powered catamaran ferry. Its engineering concept is unique and it’s the first of its kind in the world for its size; having no diesel engine, being completely electrically powered.

This vessel, and maybe a second vessel very soon, will operate in the Hardangerfjord under the operational management of ferry operator Norled.

The vessel will cross the fjord in 20 minutes and during the 10 minute boarding period it will be connected to the onshore grid to partially recharge.

During the night, the batteries will be fully charged while there is no operation. This concept is very clean, very eco-friendly and very cheap for the ferry operator,” Linzenmeier explains.

The idea for a fully-electric vessel comes off the back of the success seen in the industry with hybrid diesel vessels and Linzenmeier says that the reaction to the cost saving and environmental savings of hybrid vessels has been very good.

“There has been a positive response to ferries with hybrid diesel engines which reduce fuel costs by 21%.

Currently, there is another vessel under construction which will provide savings of 25% and this will be the cheapest in operation. Money talks so this has been

a breakthrough in the market, not only in Norway with ferries but also in much wider applications.”

And these applications could include activity with crew transfer vessels or other medium-sized supply vessels in the offshore energy industry.

“Right now, Ampere 1 is for short distances and is working very well. It’s very clean, very cheap and showing great potential for the future,” says Linzenmeier.

And with the second fully-electrical vessel set for delivery in 2015, it seems that Aluship has found another niche market space which will be hugely beneficial, not only to Aluship, but to the wider maritime industry. And all of the innovation and visionary forward thinking is coming straight out of Gdańsk proving that Poland’s offshore and maritime industry sector is becoming more and more developed with each passing year..

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PAGE 93

World leading heavy expertise

Editorial: Tim Hands

Operating out of its headquarters in Ulsan, South Korea, Hyundai Heavy Industries is the world’s largest shipbuilding company, building a variety of ships of the finest quality, from general merchant vessels to speciality vessels at its world-leading shipyards. The Hyundai Heavy Industries Group has grown vastly since its inception through using innovation to surmount challenges, with a focus now on moving forward and growing as an integrated world leading service provider.

The Hyundai Spirit famously comprises creative wisdom, positive

stretch of beach into the world’s largest shipyard came about in June

of the modern Korean heavy industry more generally, and ultimately borne

thinking and unwavering drive, and a strict adherence to these principals has allowed HHI to become a global leader in the heavy industries sector.

Founded by the late Chung Ju-yung on March 23, 1972, the completion of transforming an empty

1974. Only a decade later from this first delivery, the Hyundai Shipyard topped 10 million deadweight tons in aggregate ship production, and has maintained the leading position in the world shipbuilding market ever since.

It is a growth that has mirrored that

the formation of this integrated heavy industry company. This has seen HHI successfully diversify from shipbuilding into offshore and engineering, industrial plant and engineering, engine and machinery, electro electric systems, construction

PAGE 94

HYUNDAI HEAVY INDUSTRIES equipment, and green energy businesses, and such a drive has allowed it to become a responsible global corporate citizen contributing to the sustainable development of the world economy.

Of the vast array of business divisions currently under its operation, the Offshore & Engineering Division of Hyundai Heavy Industries is another that leads the world in its field.

Located five kilometres away from its main shipyard, the company operates the world’s largest offshore yard covering 292 acres, an involvement in offshore structures which began in 1976 with a Saudi Arabian order for 89 jackets and deck structures for the Open Sea Tanker Terminal, for the Jubail Industrial Harbour Projects.

Hyundai Heavy Industries’

Offshore & Engineering Division has become a world leading EPIC contractor, and one which can prove integrated services from Engineering, Procurement, Construction, transportation and installation, through to offshore hook-up and commissioning and project management. It has, to date, completed more than 170 projects, and has gained along the way recognition as being one of the most experienced and advanced offshore yards in the world.

A large part of the success of the Offshore & Engineering Division is down to its ability to offer onshore process plant expertise alongside offshore module fabrication experience, combining to create high-value added service, and is

bolstered by its dry dock boasting a one million ton capacity, equipped with extra-large gantry cranes both capable of lifting 1,600 tons in its offshore yard. As its name very well suggests, a new heavy lift vessel, HD 10000, has the lifting capacity of 10,000 tons and allows HHI to build bigger blocks in the construction stage, and embodies the division’s continual strive to develop stateof-the-art technology and provide high quality services for the oil and gas industry, providing clients with a comprehensive and cost-effective solution that meets their needs entirely.

Leading the global shipbuilding industry with a 15% share of the market, the Hyundai Shipbuilding Division continues the company’s

PAGE 95

trend of creating world leaders within its chosen fields. From a breathtaking shipyard which stretches over four kilometres along the coast of Mipo Bay in Ulsan, Korea, the Shipbuilding Division is capable of building all types of ships to meet the specific demands of the full range of its clients, having delivered more than 1,840 ships to 282 ship-owners in 48 countries since 1972.

Its ten large-scale drydocks and nine huge ‘Goliath Cranes’ have served to help HHI’s Shipbuilding Division garner many awards since the shipyard’s opening in 1972, setting along the way a vast number of records within the shipbuilding industry. Notable milestones for

PAGE 96

the Division have centred around a burgeoning production capability, seeing it reach the 10 million DWT mark in 1984, and, just four years later, 20 million DWT in 1988, rising to the monumental 100 million DWT figure in 2005. This represented yet another world first for the company, and embodies its continual fulfilling of its legacy as the leader of the shipbuilding industry through constant innovation and application of internally developed, future orientated technology.

The end of May this year saw HHI’s shipbuilding division receive one of its most significant contracts to date, in the form of a Letter of Award (LOA) from Hess Exploration

and Production Malaysia B.V. for the provision of engineering, procurement, construction, transportation, installation, hook-up and commissioning at the Bergading Complex. Part of the full field development project to be located in the North Malay Basin, in water depths of approximately 60 metres and operated by Hess under a production sharing contract with PETRONAS, the operation comprises a central processing platform (CPP), a bridge and a wellhead platform.

The CPP is to be constructed at HHI’s offshore yard in Ulsan, South Korea, with offshore installation of the Bergading facilities scheduled to take place by the end of 2016.

HYUNDAI HEAVY INDUSTRIES In even more recent times, the Hyundai Mipo Dockyard (HND) has showcased its cutting edge capability to build high demand offshore vessels, through the delivery of the fourth high value platform supply vessel (PSV) for BP Shipping at the Ulsan shipyard.

The market leader in medium sized vessels, this final PSV follows the delivery of three vessels of the same type completed between January and July this year and this latest, named NS Frayja, measures an impressive 97 m in length, 20 m in width and 8.5 m in depth. It comes equipped with a variety of the very latest in technology, including an oil recovery operation and dynamic positioning system, and will work alongside the rest of its fleet in the North Sea fields.

Continuing the thread of what has been a truly remarkable year for the acquisition of new business, the announcement in June of a Letter of Award of a $1.94 billion order, to build four offshore oil production platforms and to lay undersea cables in the United Arab Emirates, is perhaps the most significant yet for the company. This is the second package of the Nasr Full Field Development Project to build the fixed platforms and to lay subsea cables from Abu Dhabi Marine Operating Company (ADMA-OPCO), and will see HHI undertake engineering, procurement, construction, installation and commissioning work for the super complex comprising a gas treatment platform, a separation platform and an accommodation platform. Additionally to this, HHI will also oversee the laying of 144 km of subsea power and 55 km of infield cables, and modifying an existing manifold tower and two wellhead towers in Nasr oil field, located some 130 km northwest of Abu Dhabi.

This is undoubtedly among Hyundai Heavy Industries’ most important operations in the offshore plant

“Given the fierce competition for winning contracts in the Middle East, the deal shows that Hyundai Heavy Industries was chosen based on the trust it has built up in previous projects it has conducted in the region”

construction sector in recent years, as underlined by a company official, stating; “Given the fierce competition for winning contracts in the Middle East, the deal shows that Hyundai Heavy Industries was chosen based on the trust it has built up in previous projects it has conducted in the region.”

Underlining HHI’s continued growth and an ever burgeoning reputation in the field, completion of the platforms by the second half of 2019 is expected to increase the daily oil production capacity of the offshore fields to 65,000 barrels, an almost tripling of the current capacity of 22,000 barrels.

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PAGE 97

You can buy luxury…

Editorial: Harriet Pattison

Throughout Europe there are some truly luxurious and exclusive hotels which boast private beaches, heated swimming pools, personal butler services and relaxing spa treatments but of course, they come with a rather substantial price tag. Below is a selection of some of the most lavish hotel stays across the continent…

When you work hard the saying goes you must play hard to ensure you have a balanced work life. Some may choose to stay at home or hire out a self-catered villa while others may opt for a truly luxurious and relaxing hotel break.

With so many beautiful locations dotted across Europe, whether you prefer a scenic beach holiday, bustling city break or a relaxing weekend exploring local markets and landmarks, here is a selection of some of the most luxurious and noteworthy hotels you simply must visit.

ALPENHOF HOTEL, AUSTRIA For a holiday spent in the breath-taking Austrian mountains, the Alpenhof Hotel in Hintertux has been awarded Holiday Check’s Top Hotel award four years running. With a Wellness area offering body treatments, an indoor swimming pool, relaxation area and six saunas, visitors can also enjoy the ‘Alpen’

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garden. In the summer months there are ample activities ranging from hiking to cycling and in the winter, of course, you can enjoy the renowned skiing slopes on the Hintertux glacier.

This is certainly a hotel for those who wish to relax, wind down and take time away from hectic and busy lives to appreciate the stunning views and beautiful suites.

fishing village amidst the architecturally beautiful Sardinian houses, is the Hotel Cala Di Volpe. This 5 star hotel boasts an impressive 100 sea-view rooms across the Mediterranean ocean.

The Presidential Suite alone consists of three bedrooms, two separate lounges, a sauna and a private swimming pool. Setting you back an estimated £12,000 per night in peak season, the hotel also offers guests a private beach and if that isn’t enough to tempt you, an Olympic sized salt water swimming pool is also waiting for you.

Alpenhof Hotel in Hintertux

HOTEL CALA DI VOLPE, SARDINIA For a slice of Italian sunshine, visit the relatively unspoilt island of Sardinia.

Located on the romantic stretch of the Costa Smeralda in the traditional

Hotel Cala Di Volpe, Sardinia

DESTINATION DIRECTOR

THE FOUR SEASONS, ISTANBUL Of course, providing a list of Europe’s most luxurious hotels had to include The Four Seasons. Often ranked amongst the top most lavish hotel brands in the world today, with locations including Hawaii, Sydney and Los Angeles, the Four Seasons Istanbul was voted amongst the top 25 hotels in the world this year.

Located in Istanbul’s oldest district, you are a stone’s throw from the 6th Century St. Sophia, the 15th Century Topkapi Palace and the beautiful 17th Century Blue Mosque. If these spectacular monuments can’t tempt you then the narrow streets perfumed with rich incense, aromatic spices and some of the world’s best coffee will surely help.

A seven night stay in the Bosphorus Palace Suite will cost you upwards of £35,000 during peak season.

With the Four Seasons Private Jet on hand for the jet setting wanderlust waiting to whisk you away to some of the world’s top travel destinations, this really would be an adventure of a lifetime. The world traveller ticket allows you to discover up to ten international destinations in a single private jet journey.

Four Seasons - Istanbul THE GRAND RESORT LAGONISSI, ATHENS The Grand Resort Lagonissi is situated in one of the world’s oldest cities, Athens.

Awarded a Certificate of Excellence in 2014, a night here will cost you upwards of £20,000 and if you fancy a month-long holiday of relaxation and luxury, it has a price tag of over half a million pounds, excluding tips and drinks.

The hotel boasts a choice of eight restaurants, a chauffeur-driven car and 20 exclusive sandy beach coves. With stunning waterfront views and direct access to the hotel’s private beaches, the suites really are the epitome of lavishness, relaxation and luxury.

The Gold Club offers a private gym, private gardens with an outdoor heated swimming pool

with hydro massage and counter current devices. However, if this isn’t enough to tempt you, the Platinum Club offers the highest degree of luxury with marble lined bathrooms, steam baths and heated floors. The Royal Villa on the south side of the Peninsula includes both an indoor and outdoor heated swimming pool and a private path leading to the beach and your very own private decking area. Of course, perhaps the only downside to a stay here is that at some point you will have to pack up and leave it behind.

So whether you choose a cosy stay in the Austrian mountains, a culture rich visit to Istanbul or travel to the beautiful island of Sardinia, you will be able to experience a true sense of holiday relaxation steeped in superfluity and indulgence

The Grand Resort Lagonissi, Athens

PAGE 99

Volvo and the gaspowered truck Editorial: Christian Jordan

Volvo Trucks is expanding its model range in Europe with a new version of the Volvo FE running entirely on methane gas. Business Manager Alternative Drivelines, Christina Eriksson and Environmental Director, Lars Mårtensson explain more…

Think about how many trucks and lorries you see on the roads today; doesn’t it seem like almost every other

of things is essential; without movement of goods around England’s capital the city would quite literally grind

if the truck is not efficient internally; if it’s churning out huge amounts of CO2 and wasting energy throughout

vehicle is a heavy one, transporting goods from A to B? This is especially so on the bigger roads and in the busy centres; take London for example, the mass of activity and the sheer volume of people requiring goods and services means that logistics and the movement

to a halt.

And when you’re transporting a large amount of produce, you need the correct equipment. It’s likely that you’ll use a truck or a large van and of course this means less journeys as you can pack more into one load. But

the whole journey then perhaps there is a need to look at a new type of vehicle, something which is kinder to the environment and specifically tuned for journeys that are of the stop-start nature.

There is one such truck, developed

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FUTURE POWER

recently, by a company renowned for its innovation and sustainability values and that truck is the Volvo FE CNG (Compressed Natural Gas).

Launched in August, the Volvo FE CNG is a new version of the Volvo FE running entirely on methane gas. It has been has been primarily developed for operations involving short driving cycles with repeated starts and stops such as refuse collection and local distribution.

This innovative approach could be the start of a revolution when it comes to powering the many trucks that hop to and from destinations, making short journeys, in major cities; vastly reducing the amount of CO₂ that is pumped into the atmosphere. Volvo are already claiming that this truck produces 70% less emissions than that of a diesel truck.

It is driven by a new 9-litre Euro 6 gas-powered engine featuring spark plug technology and automatic transmission.

“With the Volvo FE CNG we can now offer companies that drive a lot in urban environments a truck with a far lower environmental impact. Many cities the world over are looking for alternatives to diesel-powered trucks. In the field of refuse handling in particular, renewable fuels are often a requirement for securing a purchase contract,” says Christina Eriksson, Business Manager Alternative Drivelines at Volvo Trucks.

“Spark plug technology is particularly suitable for driving cycles where the truck covers short distances with a lot of start-stop traffic,” explains Christina Eriksson.

Lars Mårtensson, Environmental

Director at Volvo Trucks said: “Methane gas is the fuel that will become a sustainable alternative to diesel in the long term. Right now the focus is on working together with the various public authorities and private corporations to draw up the relevant rules and create the right preconditions for positive development.”

Sales of the new gas powered truck started in August and series production is set to get underway in the first half of 2015.

And who’s to say that the Volvo truck could only be used for refuse collection? The company is confident that methane gas can be used to power a wider variety of vehicles, as long as methane is easily accessible.

“Methane gas is a collective name for biogas and natural gas, both of

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Volvo FE CNG

which largely consist of methane.

Natural gas is a fossil product that is between 40 and 500 million years old and is extracted from deep inside the Earth’s crust,” the company explains.

“Biogas is similar to natural gas but it is a renewable gas that is created when organic material is decomposed by bacteria in an oxygen-free environment.

It can for instance be created from refuse and other organic waste. When a truck runs on biogas, emissions of carbon dioxide are cut by up to 70 per cent compared with running on diesel

waste would release methane and that very methane could be collected, compressed, and pumped back into the trucks.

And then there’s the rest of the trucking industry where if this concept was to take off, focus would have to be on the feasibility of refuelling.

Volvo Trucks are well known for their unique and innovative marketing campaigns and as interest in the Volvo FE CNG grows, it is likely that a viral campaign will be just around the corner.

One thing is for sure, this is a

fuel.”

Of course, if refuse companies do decide to switch to methane powered trucks, the whole system could become self-sustaining with the vehicles delivering waste to a treatment facility where decomposing

breakthrough that cannot be ignored.

Methane is certainly an energy source that is gaining traction in the global energy mix and with its impressive CO2 statistics, its looks like more research and more development will help bolster its growth

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Volvo FE CNG • 4x2 (19t), 6x2 (19.5 26t) rigid

• G9K gas engine, 9-litre Euro 6 with spark plug technology, 320 hp / 1356 Nm

• Fully automatic transmission

• Day cab • Tank system for up to 160 m3 methane gas

• 2x4 or 2x3 tanks for

compressed natural gas fitted on both sides of the chassis.

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