Worley has been awarded a contract to provide main FEED Phase II services for the Nigeria-Morocco Gas Pipeline (NMGP) project

When completed, the over 7,000 km long gas pipeline, being promoted by Office National des Hydrocarbures et des Mines (ONHYM) of Morocco and Nigerian National Petroleum Corporation (NNPC) of Nigeria, will link Nigeria with Morocco, cross 11 west African countries and extend to Europe. It will be the longest offshore pipeline in the world and the second longest pipeline overall.

The NMGP pipeline is expected to traverse 13 countries, and will help to boost local industries and economies by delivering a reliable and sustainable energy source. It will also support industrial development and create employment opportunities.

Additionally, the pipeline will provide a new avenue for countries along the route to export their gas to their neighboring countries and Europe.

Delivering this project requires expertise from all over the world.

The overall FEED services will be managed by Intecsea BV, our offshore engineering consultancy business in The Hague, the Netherlands. This includes the development of the project implementation framework and supervision of the engineering survey.

The onshore FEED scope, the Environmental and Social Impact Assessment (ESIA) and Land Acquisition Studies (LAS) will be delivered by our team in London, UK. The project will also be supported by our network of offices in Africa, and our global integrated delivery team in Hyderabad, India.

Advisian, our global consulting business, will explore the acceleration of electrification and the feasibility of energy self-sufficiency in the region. Our UK and Madrid offices will set out the potential to use renewable energy resources to power the pipeline and reduce the project’s carbon footprint.

“Being part of a project that not only looks towards sustainability, but also contributes to boosting regional economy and supports the development of local communities is an incredible opportunity,” said Ping Liu, Managing Director of Intecsea BV.

“The NMGP is a project that reflects our purpose of delivering a more sustainable world. We look forward to working with ONHYM and NNPC as we journey into a new chapter for West Africa.”

Source: Worley

JGC and TOYO Sign Alliance Agreement on EPC Projects for Fuel Ammonia Plants

JGC Holdings Corporation and Toyo Engineering Corporation announce that the two companies have signed an alliance agreement related to the receipt of orders and execution of engineering, procurement, and construction (EPC) projects for fuel-ammonia manufacturing plants and ammonia receiving terminals, starting from feasibility studies (FS) and front-end engineering design (FEED).

In October 2020, the Japanese government declared its goal of realizing carbon neutrality by 2050. Fuel ammonia shows promise as a decarbonized fuel for power generation, shipping, etc. The government has therefore set expanded implementation targets of 3 million tons per year as of 2030 and 30 million tons per year as of 2050. Accordingly, various companies and organizations both in Japan and overseas have launched initiatives aimed at the manufacturing, transport and use of fuel ammonia.

In response to this move toward the expanded use of fuel ammonia, the JGC Group and the TOYO Group reached an alliance agreement with the aim of speedily demonstrating to fuel ammonia business operators enhanced proposal capabilities and competitiveness by combining the JGC Group’s extensive record of constructing process plants in regions such as Australia and the Middle East with the TOYO Group’s extensive track record and technical expertise in ammonia manufacturing plants, integrating efforts from the conceptual stage to EPC.

A coalition of the Japanese government and companies is expected to play a key role in the fuel ammonia business in the future. The JGC Group and the TOYO Group will jointly pursue business operations and project execution related to the evaluation, planning, engineering, procurement and construction of fuel ammonia manufacturing-related facilities around the world, including for overseas companies.

Through the expanded use of fuel ammonia, the two Groups will contribute to the realization of a decarbonized society.

Source: JGC

McDermott Joins Industry Experts on Hydrogen Hub and CCUS Project

McDermott International has joined a group of industry experts focused on unlocking the potential for a hydrogen-led energy hub located at Bacton, Norfolk, UK. The UK North Sea Transition Authority (NSTA) is spearheading the Bacton Energy Hub (BEH) project, which could play a significant role in the UK’s energy future and become a vital element in its transition to net zero emissions.

The project aims to deliver a sustainable hydrogen supply by adding facilities that support low-carbon hydrogen production, carbon capture and underground storage (CCUS) by 2030. Also, through the development of offshore wind, it is aiming to develop renewable hydrogen production as part of the energy supply transition by 2050.

“We are proud to play a leading role in developing the UK’s energy future in line with the net zero objectives set by the UK Government,” said Tareq Kawash, Senior Vice President, Onshore. “McDermott’s Center of Excellence in London has the design capabilities and expertise in major project execution, including both greenfield and brownfield, to deliver a viable project scope that will support Maximizing Energy Recovery (MER) and net zero emissions for the UK.”

“It’s great to see an organization like McDermott contributing to the Bacton Energy Hub initiative, which aims to facilitate the transition to net zero and reinforce the East of England’s position as a key region for low carbon power for the UK,” said Alistair MacFarlane, NSTA Southern North Sea & East Irish Sea Area Manager. “The Infrastructure SIG will play a vital role in maturing the opportunity at Bacton and hopefully enabling the industry to take investment decisions by 2024.”

The NSTA has established five Special Interest Groups (SIGs) to work collectively on an executable development concept. The five SIGs are: Hydrogen Supply; Hydrogen Demand; Regulatory; Supply Chain and Technology; and Infrastructure. McDermott has been selected as a core member of the Infrastructure SIG and has been chosen to lead Work Scope 6—Greenfield Onshore facilities. The Infrastructure SIG will establish the offshore and onshore facilities required to produce, store and distribute both low-carbon and renewable hydrogen, with associated CCUS. The SIG will include industry and government input to perform a series of studies and make recommendations for future project development.

Source: McDermott

PERTAMINA, Osaka Gas, JGC Holdings and INPEX Sign Joint Study Agreement on Bio-methane Derived Clean Gas Project

PT PERTAMINA (Pertamina), Osaka Gas Co., Ltd. (Osaka Gas), JGC Holdings Corporation (JGC) and INPEX CORPORATION (INPEX) (together hereinafter, “parties”) announced they have entered into a joint study agreement on exploring the feasibility of a clean natural gas and liquefied natural gas (LNG) project in Indonesia involving the production of bio-methane1 from palm oil mill effluent (POME). The project is expected to support the Asia Energy Transition Initiative2 (AETI), a plan unveiled by the Government of Japan in 2021 that aims to help achieve sustainable economic growth and carbon neutrality in Asia through energy transitions.

Indonesia is the world’s largest producer and exporter of palm oil, and Indonesia’s palm oil industry is a key industry that supports the employment of approximately three million persons and generates 4.5 percent of the country’s GDP. POME is known to contain large quantities of organic material resulting in significant methane emissions, which is generally said to have 25 times larger impact on global warming compared to CO2. The project is intended to contain POME-derived greenhouse gas emissions by sequestering methane and converting it to biofuels, contributing to the supply of clean energy in a sustainable manner.

Through this joint study initiative, the parties will jointly conduct a study on the feasibility of the project, including cooperation on the research and development of technologies and solutions pertaining to the production of bio-methane from POME resources located in Sumatra and Kalimantan and supplying to consumers in Indonesia, including Java. The aim of the project is to supply bio-methane through the existing gas grid, meet growing natural gas demand and contribute to the reduction of Scope 13 emissions of gas consumers in Indonesia. The parties will also jointly assess opportunities for the project to leverage carbon crediting mechanisms and bio-methane certification schemes to secure carbon neutrality. Finally, the joint study will also involve identifying bio-methane/bio-LNG and bunker fuel marketing opportunities, including bio-LNG export to Japan and/or other countries.

Pertamina positions this collaboration as a continuation of several green energy development projects it has developed so far as part of a more comprehensive effort to reduce GHG emissions by 30 percent before 2030. In addition to developing New and Renewable Energy (NRE), this collaborative project helps overcome environmental challenges especially by turning palm oil waste into environmentally friendly energy.

In this joint initiative, Pertamina will provide several facilities and locations with good accessibility to raw material sources in Kalimantan and Sumatra. In addition, the output from the initiative is expected to help meet the natural gas demands of the industrial sector and general consumers, and expand the development of Pertamina’s natural gas network.

This study is in line with the Daigas Group Carbon Neutral Vision (CNV) announced in January 2021. Aiming to become carbon neutral by 2050 under CNV, Osaka Gas will continue to develop technologies and services that contribute to a decarbonized society and solve social issues such as climate change. To expand the use of bio-methane in Indonesia and to reduce CO2 emissions in both Indonesia and Japan, Daigas Group will contribute to this collaboration through the technology of bio-methane production from bio-gas, the experience of bio-methane pipeline injection, and the knowledge of natural gas marketing.

As outlined in its Long-term Strategy and Medium-term Business Plan (INPEX Vision @2022) announced in February 2022, INPEX seeks to proactively engage in energy structure reforms towards the realization of a net zero carbon society by 2050 while responding to the energy demands of Japan and other countries around the world. In line with this strategy, the company aims to work closely with its partners to build a business framework contributing to climate change response and explore opportunities to provide clean LNG bunkering solutions at the Bontang LNG Terminal in Bontang, Indonesia.

JGC group recognizes this program as an important strategy to unlock the clean transition fuel interests in the Asian region to achieve its medium-term management plan, “Building a Sustainable Planetary Infrastructure 2025.” JGC will contribute to this collaboration by delivering its core competencies in program management and delivering world-class engineering capabilities acquired through its rich track records in building gas processing facilities in Indonesia.

Source: JGC

Hitachi Energy wins INR 160 cr order from MP Power Transmission Package-II Limited to modernize the Madhya Pradesh power grid in India

Hitachi Energy India Ltd. has won an order worth about INR 160 crore from MP Power Transmission Package-II Limited, a project-specific business to strengthen the transmission system in the rural area of Madhya Pradesh to increase capacity and improve reliability of the power infrastructure in the region. The order was booked in the January to March quarter.

The order for nine grid connections will strengthen a power transmission network spanning more than 1,000 kilometers of overhead lines across nine rural districts of Madhya Pradesh. The state has increased its momentum to reach a target of 12 GW of renewable energy generation capacity by 2025 – through utility-scale solar, wind and hybrid installations as well as rooftop solar.

“As more people get connected to the grid, electricity will form the backbone of the entire energy system, driven by a higher share of renewable energy” said N Venu, Managing Director and CEO, Hitachi Energy India Ltd.” Reliable transmission and digitalization of the power network will be crucial to ensure a sustainable energy future

“Through these projects, we are pleased to be regarded as a trusted partner of choice to advance a sustainable energy transition. At Hitachi Energy we are committed to the accelerated electrification, digitalization and decarbonization of the world’s energy systems,” he added.

Hitachi Energy is the world’s leading provider of grid connections and power quality solutions, with an installed base of more than 10,000 projects worldwide, over 800 of which connect renewable energy sources to the grid.

Source: Hitachi Energy

TechnipFMC Awarded Significant Integrated EPCI Contract by Wintershall Dea

TechnipFMC has been awarded a significant(1) integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract by Wintershall Dea Norge AS for its Maria revitalization project.

The project will boost production at the existing Maria field in the Norwegian Continental Shelf. The contract includes subsea trees, spools, jumpers, and flexible pipes.

The revitalization project will tie in an additional lightweight six-slot integrated template structures (ITS). The two existing templates in the Maria field are part of TechnipFMC’s installed base and began production in 2017.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “This iEPCI™ award is built on our ability to leverage our integrated front end engineering and design (iFEED™) model. Through early engagement, we optimized the field layout and maximized the benefits of integrated project execution. Our involvement helped reduce the carbon footprint of the revitalization project by modifying existing infrastructure, eliminating the need for an additional 4,000 meters of pipe.”

(1) For TechnipFMC, a “significant” contract is between $75 million and $250 million.

Source: TechnipFMC

L&T Construction Awarded contracts for its Water & Effluent Treatment Business

The international arm of the Water & Effluent Treatment Business has been awarded a project from a prestigious client to construct and commission water supply schemes for various towns in Tanzania.

The aggregate scope of work comprises design & construction of raw water intake systems, storage tanks, water treatment plants of a total capacity of 71 MLD, 5 clear water reservoirs, pumping stations, 263 km of pipeline and associated electromechanical works.

The project is being funded by the EXIM Bank of India.

In addition, the Business has also secured add-on domestic orders from the Uttar Pradesh State Water & Sanitation Mission to implement various rural water supply projects under the Jal Jeevan Mission to provide Functional House Tap Connections (FHTC) in the state.

Source: L&T

SNC-Lavalin awarded advisory and engineering services contract for ADNOC offshore operations power project

SNC-Lavalin, a fully integrated professional services and project management company with offices around the world, has been awarded a four-year advisory and engineering services contract by Abu Dhabi National Oil Company (ADNOC) to support its offshore operations power project. A first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the Middle East and North Africa (MENA) region, the project will power ADNOC’s offshore production operations with cleaner and more efficient energy.

“Our work with ADNOC on this significant project will support the UAE Net Zero by 2050 Strategic Initiative and reinforces our commitment to work with our global clients on their net zero journeys,” said Ian L. Edwards, President and CEO, SNC-Lavalin. “Through our world-class engineering services and HVDC expertise, we will ensure the project is delivered to the highest quality, safety, and environmental standards to drive more efficiency and green impact.”

The project, which is in partnership with Abu Dhabi National Energy Company PJSC (TAQA), is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network. This will be achieved by developing two subsea HVDC-VSC links from onshore Alternating Current (AC) power substations to artificial islands. SNC-Lavalin’s scope of work includes the design review of the converter stations, the submarine cables, integration with the onshore and offshore grid, as well as reviewing the implementation plans for HSE, Quality Control (QC) and Quality Assurance (QA) of contractors. In addition, SNC-Lavalin will provide supervision throughout the construction and commissioning phases. The project will be supported by the company’s global HVDC Center of Excellence in Canada, and its regional expertise based in the Middle East.

“SNC-Lavalin’s Canadian HVDC Centre of Excellence (CoE) has been active in the field for half a century,” said Dale Clarke, CEO, Engineering Services, Canada at SNC-Lavalin. “This CoE has delivered close to 50 landmark projects across five continents and adapts each project to its unique environments.”  

SNC-Lavalin has a proven track record in delivering some of the most complex and challenging HVDC systems worldwide. The company’s global team of expertise work with clients across the entire asset life cycle, ensuring – from development and design to project development and commissioning, to rehabilitation and end-of-life management –the utmost benefits of clean, effective and cost-effective power are realized.  

Source: SNC-Lavalin

Technip Energies and Alterra Energy to Jointly Develop Sustainable Plastics Projects

Technip Energies and Alterra Energy (“Alterra”) announced they have signed a global joint development and collaboration agreement to integrate Alterra’s commercially available liquefaction process technology with Technip Energies’ pyrolysis oil purification technology to maximize adoption of recycled feedstock and improve circular economy solutions for the global petrochemical industry.

Alterra provides an innovative, patented, thermochemical liquefaction, converting hard-to-recycle plastic into pyrolysis based oil (“PyOil”).  

Technip Energies brings extensive knowledge of ethylene furnace and steam cracker design, preparation and purification of heavy feedstocks for refining and petrochemical facilities, all of which is combined in their Pure.rOil ™ purification technology ensuring safe, reliable and an optimized integration with individual crackers. 

The combination of both companies’ solutions ensures Alterra’s recycled PyOil is drop-in ready feedstock to further accelerate the replacement of hydrocarbon-based oil with recycled feedstock in the production of new plastic-based materials.

Bhaskar Patel, SVP Sustainable Fuels, Chemicals and Circularity at Technip Energies said: “Technip Energies’ Pure.rOil ™, combined with Alterra’s experience and innovative advanced recycling solution, is helping create new pathways toward solving the plastic waste problem. This partnership with Alterra further strengthens our growing presence in the field of plastics recycling and circularity. ”

Frederic Schmuck, CEO of Alterra Energy, stated “Our partnership with Technip Energies allows us to offer a more holistic value proposition to our customers by ensuring that our recycled product can be utilized as a direct feed in the majority of existing chemical and petrochemical assets for the production of new plastics, thus closing the plastic recycling loop. To meet the growing demand for recycled content, Alterra will continue to forge partnerships and collaborations with innovative companies like Technip Energies to create a recycling ecosystem that’s as efficient and effective as possible.”

Source: Technip Energies

Wood awarded contract for first oil development offshore Senegal

Wood has been awarded a contract by Woodside Energy for the Sangomar FPSO development, located 100km south of Dakar, Senegal.

The floating production storage and offloading (FPSO) facility is specifically designed for the processing of hydrocarbons and the storage of oil before being transported to markets around the world. On completion in 2023, the FPSO will have a production capacity of approximately 100,000 barrels per day of crude oil, which will provide revenue to help deliver sustainable long-term economic and social benefits for Senegal.

A multidisciplinary Wood team will implement a combined production management system (PMS) and virtual metering system (VMS) at the Sangomar FPSO control room and Woodside’s onshore offices in Senegal and Perth, leveraging Wood’s digital capabilities and Virtuoso® platform.

The Virtuoso® PMS and VMS will provide real-time monitoring of the production system together with decision support for complex operations and advanced surveillance for hydrate and wax management. The PMS will ensure continuity of production and minimised flaring which reduces the greenhouse gas emissions and methane intensity of Sangomar. Further, the VMS minimises the number of subsea flow meters required for the development.

As a leading process digital twin, Virtuoso monitors and optimises over 30% of the world’s LNG systems using multiphase flow models combined with real-time data, delivering a real-time decision support system to monitor, control, optimise and plan production operations from pore to transmission systems.

Prabu Parthasarathy, Vice President, Intelligent Operations at Wood, said: “We are delighted to be able to continue our longstanding relationship with Woodside following the award of this new contract. As one of Africa’s leading natural gas markets, boasting over 450 billion cubic meters of reserves, Senegal is aiming to establish itself as a regional gas producer and exporter. We are proud to be part of this first-of-its-kind project for Senegal, which will play a key role in helping to achieve this goal.”

The recent contract win follows on from Wood’s ongoing work with Woodside executing the flow assurance design analysis for the Sangomar FPSO Development, drawing on its extensive experience of complex operations of the field which include hydrate and wax management, hot oil and dead oil circulation, and gas lift optimisation.

Source: Woodplc

Maire Tecnimont awarded USD185 MN urea def project in the United States

Maire Tecnimont S.p.A. announces that its main subsidiaries Tecnimont S.p.A. and Tecnimont USA has been awarded a new urea Diesel Exhaust Fluid (DEF) project in the United States, by the same leading global chemicals producer that recently awarded to Tecnimont a blue ammonia project in the Country. 

The contract value is approximately USD 185 MN. The urea DEF plant, which will be based on Stamicarbon’s proprietary technology (part of Maire Tecnimont Group), entails a 1,500 tons per day urea production unit plus the necessary utilities and facilities, including a CO2 purification plant. Project Completion is expected as early as 2025. Once completed, the plant will receive the ammonia from the above-mentioned Blue Ammonia plant.  

The plant will produce Diesel Exhaust Fluid (a high-purity urea aqueous solution, known as AdBlue® in Europe) which is added to diesel engines to limit the emission of nitrogen oxides during the combustion process, thus significantly reducing the environmental impact of such emissions. 

The contract’s scope of work includes supply of technology, full engineering activities and supply of all materials and equipment as well as construction supervision services. Construction activities will be the responsibility of an external party not belonging to Maire Tecnimont Group under a different contract, directly awarded by the client. Such contractual strategy is typically implemented in the United States to better optimize the construction activities and mitigate Maire Tecnimont Group’s risks. It also leverages Tecnimont USA’s expertise in managing complex projects, while valorizing local content in the Country.

Pierroberto Folgiero, Maire Tecnimont Group CEO, commented: ”This new contract awarded on the back of the Blue Ammonia one confirms our steady growth in the United States downstream market with innovative projects aimed at reducing the plants’ carbon footprint. These two back-to-back contracts represent the perfect example of our technology-driven strategy: leveraging synergies within our Group through Stamicarbon’s undisputed leadership in urea technology, Tecnimont’s strong capability as an EPCM contractor and our deep knowledge of the US energy arena and its players.”  

Source: Maire Tecnimont

Worley has been awarded a contract to provide EPCM services to Sedibelo Platinum Mines Limited (SPM)

The project, in South Africa’s western limb of the Bushveld Complex, will take SPM’s Pilanesberg Platinum Mines from an open-pit operation to an underground mine. This project will extend the life of mine by 30 years from 2030 to 2060, with first ore expected from the underground operation by 2025.

“The natural progression for an open-pit mine in an orebody that extends at depth is to transition to underground mining,” explains Gladwin Mfolo, Business Sector Lead Resources, Qatar, Kuwait, and Sub Saharan Africa. “Drawing on our underground mining expertise in South Africa, Australia, and South America, we help mine owners around the world explore the feasibility of underground life-of-mine extensions and identify the most efficient and safe underground mining methods.”

Global experience and local support

In 2019, we completed the preliminary engineering design work for the feasibility study of this project. In the new contract, we will provide detailed engineering, design, and construction management services for the full scope.

This includes the development of a box cut, which allows access to a triple decline that will extract 160 ktpm of ore from the underground operation. We will also create a series of raised bored ventilation holes, and set up production sections, ore and ventilation passes, underground engineering setup, conveyors, workshops, and some surface infrastructure.

Our Johannesburg office will lead this project with support from our global integrated delivery team. The project is expected to take around 10 years to complete, with the current scope covering the first three years.

“A combination of our work on earlier phases, interrogating and challenging proposal inputs, and understanding our customer requirements led to this contract award. We look forward to supporting SPM as it transitions from an open pit to underground mine while fulfilling its environment, social, governance (ESG), and mining charter obligations,” said Mfolo.

Source: Worley

JGC Awarded FEED and EPC Bid Agreement contract for expansion of Cameron LNG facilities in United States

JGC Holdings Corporation (Representative Director, Chairman and CEO Masayuki Sato) announced that JGC America, Inc., its 100% owned affiliate in United States, together with joint venture partner Zachry Industrial, Inc. (JZJV), has been awarded a Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) Bid Agreement contract for the Cameron LNG Liquefied Natural Gas (LNG) expansion project located in Cameron Parish, Louisiana, under a competitive dual FEED process.

Currently Cameron LNG operates three natural gas liquefaction trains (annual production of approx. 12 million tons). The expansion project is aimed to enlarge production capacity by adding a fourth train (maximum annual production of approx. 6.75 million tons) to the existing trains utilizing electric drive (E-drive) motors. Usage of E-drive instead of gas turbine drives, is expected to allow for significant reduction in carbon emissions.

JZJV will be responsible for the FEED design work as well as submission of an EPC bid.

Amid the rapid global trend toward low-carbon and decarbonization, LNG, which has less environmental impact than other fossil fuels, plays an extremely important role in promoting energy transitions. JGC has been responsible for executing LNG plants that account for approximately 30% of global LNG production. Currently, JGC is executing two LNG projects, including LNG Canada and a FLNG (Floating LNG) plant off the coast of Mozambique.

As a top LNG contractor in the field of LNG, JGC will continue to lead the industry through its strong business activities and respond to the growing demand of electric drive (E-drive) motors.

Source: JGC

Saipem has been awarded new offshore drilling contracts in Middle East and West Africa worth over 400 million USD

Saipem has been awarded new contracts in Offshore Drilling in the Middle East and in West Africa for a total amount of over 400 million USD.

Two contracts have been awarded in the Middle East for two high specification jack-up drilling units, consisting of drilling and workover operations for a duration of five years. The start of operations is scheduled for the fourth quarter 2022. Each contract includes options for two additional years. These projects will involve one Saipem jack-up unit and a new high specification jack-up chartered from CIMC Group for the project.

With these additional awards in the Middle East, Saipem consolidates its presence in this strategic area, expanding the jack-up fleet from three to five units, with a view to growth in the offshore drilling market.

Furthermore, another contract has been assigned by Eni for a drilling campaign offshore West Africa, with operations expected to start in April 2022 in continuity with previous activities. The contract will be executed by Saipem 12000, a sixth-generation ultra-deep-water drillship. The contract duration is for six months plus optional periods for an additional 10 months.

Including the contracts announced today, from the beginning of 2022 Saipem has been awarded projects worth over a total amount of 750 million USD in the offshore drilling segment.

Saipem is an advanced technological and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. Saipem has always been oriented towards technological innovation and is currently committed, alongside its clients, on the frontline of energy transition with increasingly digitalised tools, technologies and processes that were devised from the outset with environmental sustainability in mind. It is listed on the Milan stock exchange and operates in over 70 countries around the world with 32 thousand employees from 130 different nationalities.

Source: Saipem

JGC’s Consortium Awarded a Construction Project for LNG Terminal Facilities in Taiwan

JGC Holdings Corporation, in a consortium that includes leading Taiwanese construction firm RSEA Engineering Corporation, Taiwan’s Do & Find Engineering Consultants and another company, has been awarded a contract for construction of LNG terminal facilities from state-owned oil and gas company CPC Corporation.

The project calls for engineering, procurement, construction, and commissioning (EPCC) services for Kaohsiung-based CPC Corporation, which will involve construction of eight LNG vaporizers and associated facilities in Taichung. This is a lump-sum contract for approximately 60 billion yen, with the JGC portion being nearly 34 billion yen. Delivery is scheduled for 2024.

Current energy policy in Taiwan seeks to end nuclear power generation and phase out coal-fired power while actively introducing clean energy sources such as liquefied natural gas (LNG) and renewable energy. To this end, the project will expand the existing Taichung LNG receiving terminal and add the new terminal being constructed. Specifically, the consortium has been contracted to build eight vaporizers (with a total capacity of 1,600 tons per hour) and ancillary facilities at the LNG receiving terminal.

Compelling factors that may have led to this order by CPC included technical proposal capabilities meeting client needs, project execution planning that ensures quality, safety, and fast turnaround, and a project execution framework that maximizes each company’s considerable experience.

Taiwan plans to increase power generation fueled by natural gas to 50% of the island’s total power generation by 2025, up from about 30% at present. This commitment is reflected in the active expansion of LNG imports and storage capacity by CPC and Taiwan Power Company (TPC). Construction of several new LNG receiving terminals is also planned. After successful completion of this project, the JGC Group will pursue subsequent projects here.

The JGC Group has positioned LNG receiving terminals in the Asian region as a growth segment and market for EPC business, as outlined in the medium-term business plan (BSP 2025). Building on this project, we will work to secure other new orders, as we contribute to global environmental conservation through expanded use of LNG.

Source: JGC

IndianOil, L&T and ReNew to form JV for development of Green Hydrogen Business

In a bid to enable India’s decarbonization push, Indian Oil Corporation Ltd., (IndianOil), the country’s top refiner and fuel retailer, Larsen & Toubro (L&T), India’s premier engineering, construction and IT/TS services conglomerate, and ReNew Power (“ReNew”) (NASDAQ:RNW, RNWWW), India’s leading renewable energy company, announced signing of binding term sheet for the formation of a Joint Venture (JV) company to develop the nascent green hydrogen sector in India. 

The tripartite venture is a synergistic alliance that brings together the strong credentials of L&T in designing, executing, and delivering EPC projects, IndianOil’s established expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in offering and developing utility-scale renewable energy solutions. 

Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell Electrolyzers used in the production of Green Hydrogen. 

Speaking about the joint venture, Mr. SN Subrahmanyan, CEO & MD, L&T, said, “India plans to rapidly march ahead in its decarbonization efforts and production of Green Hydrogen is key in this endeavour. The IndianOil-L&T-ReNew JV will focus on developing Green Hydrogen projects in a time-bound manner to supply Green Hydrogen at an industrial scale. While L&T will bring its strong EPC credentials to the table, IOC being India’s premier oil refiner with extensive capabilities in chemical processes and refining has established deep R&D capabilities in many aspects of green hydrogen value chain, and ReNew Power has in a short time established itself as a leading renewable energy supplier and has built itself a very strong reputation. We consider this partnership as a significant step in India’s quest for alternative energy.

Addressing another gap in the Green Hydrogen manufacturing chain, IndianOil-L&T JV will focus on production and sale of Electrolyzer.”

“Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand and bring in economies of scale to make green hydrogen a cost-effective energy carrier and a chemical feedstock for many sectors.”

Commenting on the occasion, Mr. Shrikant Madhav Vaidya, Chairman, IndianOil, said, “Being the Energy of India, we are committed to powering India’s drive towards carbon neutrality by leveraging the power of green hydrogen. IndianOil is forging this alliance to realise India’s green hydrogen aspirations, which is in sync with the Hon’ble Prime Minister’s vision of making India a Green Hydrogen generation and export hub. To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green hydrogen projects in India will also be evaluated. While the usage of hydrogen in the mobility sector will take its due time, however the refineries will be the pivot around which India’s green hydrogen revolution will materialize in a substantial way.”

“The partnership forged today will thus catalyse the greening of India’s energy basket.”

Mr. Sumant Sinha, Chairman and CEO of ReNew Power said, “In alignment with the government’s broader strategic climate goals for 2030 and 2070 set by honourable Prime Minister Narendra Modi, ReNew looks forward to working with L&T and IndianOil to build the green hydrogen business in India. ReNew, as a leader in intelligent energy solutions and with advanced capability across renewable energy technologies, is well poised to complement the capabilities of our partners.”

“The timing for these proposed JVs is excellent as they will help support Government of India’s recently announced green hydrogen policy to boost India Inc.’s decarbonization journey.” 

The planned JVs aim to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy.

The central government in February notified the Green Hydrogen policy aimed at boosting production of green hydrogen and green ammonia to help the nation become a global hub for the environmentally friendly version of the element. 

For countries like India, with its ever-increasing oil and gas import bill, green hydrogen can also help provide crucial energy security by reducing the overall dependence on imported fossil fuels. 

While nearly all hydrogen produced in India today is grey, it is estimated that demand for Hydrogen will be 12 MMT by 2030 and around 40% of the element produced in the country (around 5 MMT) will be green, as per the draft National Hydrogen Mission guidelines. 

By 2050, nearly 80% of India’s hydrogen is projected to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030. This may be driven by potential cost declines in key production technologies and in clean energy technologies such as solar PV and wind turbines. 

Today, hydrogen is mainly used in the refining, steel and fertilizer sectors, which will be the focus of the JVs’ initial efforts. The country’s refining sector consumes approx. 2 MMT of grey hydrogen every year, with IndianOil owning one of the largest shares of its refining output. 

To help decarbonize Indian industry, the new green hydrogen policy provides for the waiver of Inter-State transmission charges for a period of 25 years and a banking provision of up to 30 days, which will help reduce the cost of green hydrogen significantly. This will, therefore, push the replacement of grey hydrogen with green. The Ministry of Power has also provided a single -window-clearance portal for all clearances and open access on priority to green hydrogen projects.

Source: Larsen Toubro

Petrofac awarded major Australian decommissioning contract

Petrofac, a leading provider of services to the global energy industry, has been awarded a major decommissioning contract by the Australian Government, heralding the start of an era of decommissioning in the nation’s offshore oil and gas sector.

Petrofac’s Australia team based in Perth, WA, has been contracted to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.

The contract, awarded by the Federal Department of Industry, Science, Energy and Resources, follows a stringent selection and due diligence process by the Government of Australia. The value to Petrofac of Phase 1 has the potential to be up to AUD$325 million (US$236 million).

The contract sees Petrofac as Outsourced Operator responsible for decommissioning and disconnection of the FPSO from its subsea equipment, and temporarily suspending the wells. Disconnection of the FPSO is expected to occur over approximately 18 months. Petrofac’s scope includes the provision of its unique integrated services, working with both local and global suppliers.

The Northern Endeavour is a 274-metre long FPSO facility, currently not producing oil, moored between the Laminaria and Corallina oil fields about 550 kilometres northwest of Darwin in the Timor Sea.

Josie Philips, Petrofac’s Regional Director, Australia, said:

“This contract builds on 15 years of working in Australia and is further proof of our growing and long-term ambitions in the country. A critical element will be upskilling the local workforce to meet the challenges of billions of dollars of decommissioning work in Australia now and in the future. It is Petrofac’s aim to be a local company, growing local jobs, local skills and the local supply chain. I’m delighted that we have Monadelphous and Linch-pin already on board.”

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said:

“This contract recognises our unrivalled decommissioning credentials, as the only tier one contractor with the in-house capability to manage all well and asset decommissioning phases. The contract builds on our existing track record for delivering well operator and project management services for clients globally, having successfully delivered numerous multi-well decommissioning campaigns.”

Together Petrofac and its supply chain partners, including Monadelphous and Linch-pin, will ensure the safe and cost-effective removal of the FPSO from the field in accordance with good industry practice. All activities will be done in close consultation with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to make sure strict safety and environmental protections are in place.

Source: Petrofac