Inside Energy January 2017

Inside Š 2003-2017 Shutterstock, Inc

Monthly news for EIC members

One-to-one

Stay up to date with operator and contractor activity with

EICDataStream’s parent/subsidiary company search

January 2017

We catch up with Brian Connolly from S3-ID, who have just broken into the Middle East market

We review the major developments in offshore wind during 2016 as well as looking ahead to 2017

DONG Energy A/S

Sector Analysis

www.the-eic.com

2

Sector analysis What will 2017 bring for offshore wind?

The uncertainty caused by major events such as Brexit, the US elections and China’s slowing economy have been felt around the world. The offshore wind industry was no exception and as a result fell short of its own growth forecasts for 2016. However, the news from this sector is certainly not all bad. The industry reached its lowest levelised cost of electricity, which solidifies the business case for the technology and makes it less sensitive to political change. The sector has also experienced a larger variety of investors including a rise of non-European investors, institutional investors and pension funds. This has given the technology a ‘feel good’ and ‘safe bet’ reputation in the market.

At the end of 2015, there were more than 12GW of offshore wind installed worldwide, with 91% in Europe and 9% in Asia. North America and Asia are the emerging markets but Europe will continue to dominate.

EICDataStream is currently tracking 86 projects in planning, 943 under construction and 353 operational across these continents. There are projects planned up to 2030 with the majority due to come online in 2020. If all active and planned projects are completed by 2030 the global installed capacity will reach 95GW. To put this into perspective, the UK’s total installed capacity from all generating sources is 81.6GW. Cost reductions and an increasing amount of established developers are making the European market ever more competitive. As such developers are starting to favour projects with fixed feed-in-tariffs, secured land connection and more recently, in the emerging markets of North America and Asia. DONG Energy has taken the initiative and settled in Taiwan and the US. The front-end engineering design work for their projects has looked into mitigating the risks associated with areas prone to natural disasters. As 2016 drew to a close, several European governments announced auctions and tenders, awarding areas to developers as well as support mechanisms.

The UK’s much anticipated Allocation Round 2 (AR2) for Contracts for Difference (CfD) details were announced on 9 November 2016. The application window opens on 3 April 2017 with a total draft budget allocation of £290m. The two top contenders are Triton Knoll (up to 900MW) and Hornsea 2 (1,800MW), possibly bidding at £85/MWh. DONG Energy’s Hornsea 2, is the largest project being proposed to date and has been granted planning permission.

Mary J

ose Lo

zada

In August 2016, the German government announced transitional tenders for March 2017 (1.55GW) and March 2018 (1.55GW), for projects delivered during the 2021-25 period. In November 2016 the Maritime and Hydrography Agency list 31 potential projects that could bid in the upcoming tenders. Notable ones include the Nordsee and Borkum projects. The country also announced that in 2018 they will be transitioning into the centralised model designed by Denmark.

The success of Denmark’s centralised model lies in lowering risk for developers as much as possible.

In this model the developers are not responsible for the connection to the grid. No new tenders have been announced in Denmark but in November 2016, the parliament transferred the cost of CfDs and the transmission system operator’s expenses to the national budget. That same month Vattenfall won the tender for Kriegers Flak project (600MW) for €49.9 (£42.11)/MWh, the lowest industry bid to date.

In September 2016 the Netherlands implemented the centralised model. DONG Energy won the tender for Borssele I & II (700MW) at a strike price of €72.7 (£61.35)/MWh. Borssele III & IV’s (680MW) tender closed on 29 September after 26 applications were submitted.

Finally, auctions for Hollandse Kust Zuid I & II (700MW) will take place in September 2017 and Hollandse Kust III & IV (700MW) in 2018.

In April 2016 the French government announced that they will be tendering their third round which will include a project of around 500MW off the coast of Dunkirk and a project off the island of Oleron on the Atlantic coast.

2016 also saw the US inaugurate its first offshore wind project off the coast of Rhode Island and although the country’s energy future is uncertain experts claim that the movement towards clean energy has begun and states will keep their existing plans.

The outlook in Europe is clearer: as a mature market it will keep expanding with larger projects. Both Asia and the US will no doubt look to European expertise as they attempt to develop their own offshore wind sectors. 2016 ended with a lot of plans in place for the industry and 2017 is promising to be even busier.

Mary Jose Lozada, Sector Analyst (Renewables) mary.lozada@the-eic.com

Designed and published by the EIC 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com @TheEICEnergy Energy Industries Council (EIC)

3

Inside this issue...

I hope you’ve all had a relaxing Christmas break and have come back to work recharged and ready for a productive new year.

There’s a lot for EIC members to look forward to in 2017: we’ve organised an exclusive Westminster round table event with the RH Greg Hands, Minister of State for Trade and Investment, on 16 January. This is a unique opportunity to find out how the government is supporting the UK energy supply chain and to directly influence its industrial energy policy.

We’ll also be meeting with members to hear about the amazing things you’re doing to thrive in the current tough energy markets. Your contributions will help us to produce an EIC Insight Report which will be sent to all relevant UK government departments and EIC members.

A new Insight Report covering the emerging floating LNG market is now available free to all EIC members. Please log into EICDataStream to download your copy.

In this month’s sector analysis (opposite) we review the major trends and developments which took place in offshore wind during 2016 and look ahead to what 2017 may have to offer.

Keeping up to date with the ever-increasing list of operator and contractor subsidiaries, joint ventures and partnerships can seem like a full time job, so we’ve created a new parent/subsidiary company search feature on EICDataStream to do all the work for you. Turn to page 5 to find out more.

Contents

Our one-to-one section (page 14) continues to be really popular with our members. This month, S3-ID’s Brian Connolly tells us how they have broken into the Middle East market as well as offering some tips on how SMEs can work successfully with major operators and contractors.

Sector analysis

2

Inside this issue...

3

Finally, I have some sad news to report. After a year-long illness, Matt Smith, our Membership Manager for Scotland since 1999, passed away on 9 December 2016. Matt will be greatly missed by everyone at the EIC and the many friends he made at member companies over the years. We look back at Matt’s life on page 4.

Perhaps the most fitting tribute to Matt is to remember how he touched our lives. We’ve already received lots of kind messages from our members, fondly recollecting the special moments they spent with Matt. We will compile all of these in a book of condolence which we will give to his family. If you have any memories of Matt you would like to share, or any photos, please do email me by 30 January and we will include them in the book.

A British Lung Foundation fundraising page has been created in memory of Matt: www.matt-smith.muchloved.com All donations will go towards finding new treatment and cures for lung conditions. Matt would be happy to know that he is still helping others even after his passing.

In memory of Matt Smith 4 EICDataStream 5 New members

6

Member news

8

Social media round up 11 Forthcoming events

12

One-to-one 14 EIC training

15

Middle East news

16

Asia Pacific news

17

North America news

18

South America news

19

Edward White, Editor and Communications Manager edward.white@the-eic.com Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Follow @TheEICEnergy

Join the EIC LinkedIn Group

4

In memory of Matt Smith Matt Smith, best known to Inside Energy readers as our Membership Manager for Scotland, sadly passed away on 9 December 2016.

Born in Lesmahagow, South Lanarkshire on 7 April 1951, Matt had an active and funfilled childhood. Like many of the lads in his town he was a keen member of the local Boys’ Brigade, an association he faithfully continued into his adult life, becoming Captain of the 1st Law Boys’ Brigade and President for the Wishaw and District Battalion. He was immensely proud of the organisation and took great pleasure in helping young people reach their full potential.

A lifelong Motherwell fan, Matt was a high-level athlete himself in his earlier years, proudly representing Scotland at three international athletic meets, specialising in sprint and other short-distance races.

Matt began work at the age of 17 as a commercial apprentice in the Dalzell steelworks in Motherwell. It was here on his very first day that he met a comptometer operator. She had joined that day too and her name was Linda.

Six months later, Matt popped the question and Linda became his fiancé. They later married in January 1972.

Having had a wonderful 18 years together, both were overjoyed at the birth of their twins Nicola and Andrew, who were the other loves of Matt’s life. It was a delight for him to see them both grow into passionate professionals and caring adults.

It was Matt’s Christian upbringing and the values it instilled in him that really shaped who he was, coupled with the key role that his Reverend, Harry Findlay of St Marks Parish Church, played in both his spiritual life and that of his family. Reverend Findlay not only married Matt and Linda, he also christened Nicola and Andrew, and ordained Matt as an Elder in the church in 1990.

Matt assumed his pastoral duties with great gusto and was, as you would expect, well loved by his local community.

Matt’s career with the EIC began in 1999, when he took up the newly created post of Scottish Membership Manager. During his 17 years with the organisation, his sense of humour, generosity of spirit and unwavering support won him many friends, not just among his EIC colleagues but also within an array of member companies in his region.

As a key member of the EIC team, Matt made a significant contribution to our growth through his success in Scotland, where he opened our Aberdeen office.

Just as sociable outside of the office as he was in it, Matt’s barbecues were a firm fixture on the summer calendar: his cheeky wit and cocktail mixing skills never failed to create thoroughly enjoyable days.

In September 2013 Matt was diagnosed with pulmonary fibrosis. He bore his illness bravely, never losing his characteristic positive attitude and dogged determination to overcome it.

Help us to celebrate Matt’s life A tree and a star in Matt’s memory As a fitting tribute to someone who dedicated so much of his time to helping others, a British Lung Foundation fundraising page has been set up to mark Matt’s passing: www.matt-smith.muchloved.com Please make a donation, which will support other people with lung conditions. If we raise £2,000 the British Lung Foundation will plant a tree at the Woodland Trust site in memory of Matt. If we manage to reach £5,000 Matt will have a star named after him which will appear on the Intergalactic Star Database, forever.

Your words of sympathy and photos If you have any memories of Matt or words of sympathy that you would like to share, or any photos of him, please email edward.white@the-eic.com by 30 January 2017 and we will include them in his book of condolence which we will give to his family.

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

5

Global opportunities USA

Tacoma LNG export facility Operator: Puget Sound Energy Value: US$275m CB&I has been awarded the EPC contract for this development.

The scope of work includes the construction of a 30,000 cubic metre fill containment storage tank, liquefier and vaporiser. The facility will have a capacity of 0.224Mtpa.

i

CONGO (BRAZZAVILLE)

NORWAY

Congo FLNG (New Age)

Oda oil and gas field

Operator: New Age Ltd Value: US$500m Four consortia are set to bid for the FEED contract to supply the 1.2Mtpa FLNG vessel with the contract award expected in Q1 2017. FID is targeted for 2017 with first cargoes due to be offloaded in 2020.

Operator: Centrica Value: US$640m Centrica has submitted the development and operation plan for the field, which will require US$640m of CAPEX to bring it into production, aimed to start in Q3 2019. It is understood that 80% of the total project value will be awarded to Norwegian suppliers.

For more information on these and the 7,500 other current and future projects we are tracking please visit EICDataStream

CHINA

EGYPT

WALES

Energy from Waste Shenzhen

Al-Negila nuclear power plant

Pembroke refinery CHP plant

Operator: Shenzhen Energy Group Value: US$300m Babcock & Wilcox Vølund was awarded a US$40m contract to design the energy from waste boiler for the 168MW project.

Under the contract it will also supply the equipment for the plant including a combustion grate system dubbed as DynaGrate.

Operator: Government of Egypt Value: US$15,000m Preliminary site studies have been undertaken by the Egyptian Nuclear Power Plants Authority and consultant WorleyParsons with the site proven to be a viable location for the development of a nuclear power plant.

Operator: Valero Energy Corp Value: US$128m Proposed construction of a new 45MW combined heat and power (CHP) plant to serve the Rhoscrowther refinery in Pembroke, Wales. Valero Energy has submitted plans to the Planning Inspectorate Wales for the proposed construction of the CHP plant.

Parent/subsidiary company search

• EICDataStream allows you to stay up to date with operator and contractor activity,

however, many of these have an ever-increasing list of subsidiaries. Our members have told us that this can make searches time consuming. So, we’ve produced the parent/subsidiary company search feature to do all the work for you.

• It works for both project and contract award searches. Click on the ‘Add Filter’ button and choose either ‘Operators’ or ‘Contractors’. Let’s presume you’re looking for an operator, now click ‘Choose Operators to Add’, type in the

name of the operator, and you’ll see all the operator’s subsidiaries, affiliates and joint ventures appear. You can choose all of them or just a selection.

Click ‘Done’, then ‘Add Checked Names’ and then ‘Search’.

Sign Get inup touch for the Need EICOnline training newsletter on EICDataStream?

Visit Please www.the-eic.com/Forms/NewsletterSignup contact membership@the-eic.com

Follow @TheEICEnergy

Join the EIC LinkedIn Group

6

New EIC members NEW PRIMARY MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Al Shoumoukh Energy Services

Baldwin & Francis Ltd

Ham-Let (UK) Fittings & Valves Ltd

Kingshill View Prime Four Business Park Aberdeen AB15 8PU

President Way President Park Sheffield S4 7UR

Unit 1, Lindfield Enterprise Park Lewes Road Haywards Heath RH16 2LH

The Nominated Representative is Mr David Knox, Business Development Manager

The Nominated Representative is Ms Lucy Macbeth, Marketing Executive

The Nominated Representative is Mr Michael Toh, Overseas Sales Manager

Telephone +44 (0)971 887 2976

Telephone +44 (0)114 286 6000

Telephone +44 (0)1444 487 555

Email david@alshoumoukh.com

Email lmacbeth@baldwinandfrancis.com

Email michael.toh@ham-let.com

Web www.alshoumoukh.com

Web www.baldwinandfrancis.com

Web www.ham-let.com

JG Energy Services Ltd supplies project management, equipment rental and specialised chemicals to the oil and gas industry mainly for the process and pipeline sector for shutdowns and maintenance related activities.

Baldwin and Francis Ltd was established in Sheffield in 1918 and is a worldwide supplier of integrated electrical systems to the mining, oil and gas, rail, power, utilities and process sectors. B&F offers bespoke solutions with an emphasis on full service support and enjoys long standing relationships with many blue-chip clients.

Founded in 1950, Ham-Let Group specialises in the design, development production and marketing of high quality instrumentation valves and fittings in a wide variety of materials for high pressure, high temperature and vacuum applications.

The company holds its own rental fleet for 180K nitrogen pumps, nitrogen tanks and gas booster/over pressurisations skids. (All equipment zoned and sound proofed to the latest specifications).

With subsidiaries in Russia, China and Canada and an expanding agency/distributor network in other countries, B&F has a strong platform in place to support growth strategy. It also has a wide range of fully proven and certified products for use in challenging markets throughout the world.

The company has a growing presence in the Middle East.

B&F is at the forefront of the oil and gas industry’s desire to reduce extraction costs having designed and successfully installed innovative, mission critical electrical equipment that allows the operation of unmanned offshore wellhead towers. B&F also has an enviable reputation in the rail industry and has recently launched several new and innovative products.

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

A focus on quality combined with ongoing research and development has given the company an international reputation for excellence. It is totally committed to its customers, providing highest quality products and best of breed service.

Ham-Let’s products are used around the world in a wide range of industries, including semiconductor, energy, oil and gas, ground turbines, chemical and petrochemical, CNG/NGV, analytical and others.

New EIC members

NEW PRIMARY MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Iqarus UK Ltd

Rohlig Projects Ltd

Forest Grove House Fosterhill Road Aberdeen AB25 2ZP

Unit 7 The X2 Centre Hatton Cross Heathrow TW6 2GE

SPX Cooling Technologies

The Nominated Representative is Mr Dave Thompson, Head of Business Development

The Nominated Representative is Mr Richard Jones, Director of Projects

The Nominated Representative is Mr Jeroen Bouten, Director – Sales EMEA

Telephone +44 (0)1224 669 000

Telephone +44 (0)20 8564 5560

Telephone +44 (0)1905 750 288

Email dave.thompson@iqarus.com

Email richard.jones@rohlig.com

Email jeroen.bouten@spx.com

Web www.iqarus.com

Web www.rohlig.com

Web www.spxcooling.com

Iqarus is committed to providing best in class intelligent health solutions to enable customers to operate and grow with safety and confidence in the world’s most remote and difficult operating environments.

Rohlig Projects Ltd is the projects arm of The Rohlig Logistics Group.

Rohlig Logistics is a family owned Bremen based freight forwarding company trading successfully since 1852, with offices in over 30 countries and in excess of 2,000 employees.

SPX Cooling Technologies Inc is a leading global manufacturer of cooling towers, evaporative fluid coolers, evaporative condensers and air cooled heat exchangers providing full-service cooling solutions and support to customers in the power generation, petrochemical, industrial, refrigeration, and heating, ventilation and air conditioning (HVAC) markets for more than 100 years.

For over 40 years, Iqarus has been a pioneer in the field of offshore medical support and occupational health. Working closely with clients, it helps to ensure that your workforce is healthy, productive and safe even in the most challenging operating environments.

Solutions include remote healthcare, occupational health, environmental sciences, supply of medical equipment, as well as training and development.

Sign up for the EICOnline newsletter

Unit 3, Knightsbridge Park Wainwright Road Worcester WR4 9FA

Rohlig Projects Ltd is headquartered in London and headed up by project industry veterans – it has a global footprint with project offices strategically positioned around the world and able to service the needs of its clients on a global basis.

SPX Cooling Technologies and its product brands are part of SPX Corporation.

It offers a fully compliant door to door service with an overriding emphasis on health and safety, and full bespoke cargo tracking and tracing.

Visit www.the-eic.com/Forms/NewsletterSignup

Follow @TheEICEnergy

Join the EIC LinkedIn Group

7

8

Member news Advancing the next generation in subsea technology

Aker Solutions and MAN Diesel & Turbo expect to cut the size and weight of subsea compression systems by at least 50% just a year after the first such system successfully went on stream at Statoil’s Åsgard field.

The Åsgard system, which has been running with practically no stops or interruptions in its first year, will help recover an additional 306 million barrels of oil equivalents more cost-effectively, safely and with a smaller environmental footprint than a traditional platform. Aker Solutions delivered the system in close collaboration with partners including MAN and the operator Statoil.

Aker Solutions and MAN Diesel & Turbo teamed up in October 2015 to build on their joint experience from Åsgard and their extensive oil and gas industry expertise. The partnership expects to reduce the size and weight of future systems by at least half, greatly lowering investment and installation costs.

i

For more information: www.akersolutions.com

Alderley opens new facility in Saudi Arabia

Alderley is currently gearing up for the In-Kingdom Total Value Add (IKTVA) programme in Saudi Arabia and has recently secured a new facility.

The new facility, located at Dammam Second Industrial City, has a total space of 9,025m² and will have four times the manufacturing capacity of its existing site in Dammam.

Integrated DECOM consortium formed

A specialist team of companies have come together as part of their commitment to deliver an approved decommissioning programme under one collaborative offering. Integrated DECOM will offer independent frontend engineering and environmental solutions providing integrated support for oil and gas operators looking to retire redundant facilities without the burden of an in-house overhead.

Alderley has been operating in Saudi Arabia for over 11 years and is predominantly recognised for top engineering and the manufacturing of metering and control systems. To date Alderley provides a range of through-life support services to the 122 liquid metering systems and 72 gas metering systems installed across the Kingdom.

With over 20 years’ expertise and knowledge of successfully delivering major UKCS decommissioning projects, Costain, Axis Well Technology, BMT Cordah and DNV GL have the capability and capacity to deliver the entire decommissioning work scope up to the approval of the project’s decommissioning programme, from subsurface to structure, through a single point solution.

This substantial investment in new facilities demonstrates Alderley’s ongoing commitment to further strengthen local Saudi manufacturing and play its role in contributing to Saudi Aramco’s IKTVA programme.

Frazer Mackay of Costain, who are leading the consortium, said, ‘The companies within Integrated DECOM bring complementary, critical technical skills which are required to plan and deliver compliant and cost effective decommissioning.’

i

For more information: www.alderley.com

i

For more information: www.costain.com

© Statoil 2016

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Member news

DHL wins Bechtel West Nile Delta contract Specialist freight forwarder DHL Industrial Projects in Aberdeen and London has been awarded a contract by engineering, procurement and construction company Bechtel.

The company will provide its freight forwarding services to the West Nile Delta project under development offshore Alexandria, Egypt.

The project’s globally sourced cargo will be shipped into Egypt as a mixture of containers and breakbulk consignments. DHL will also oversee direct shipments of heavy lift cargo to Egypt as part of the contract.

As a result of this award DHL Industrial Projects in Aberdeen and London will now start a recruitment campaign to deal with the increase in work load.

i

For more information: www.dhl.com

Mech-Tool Engineering completes contract on BP Kinneil scheme

Product manufacturer and global supplier of fire, blast and radiant heat protection systems, Mech-Tool Engineering Ltd, has successfully completed a contract to deliver its hazard protection solutions for BP’s Kinneil Liquid Petroleum Gas (KLPG) Chilldown project.

The contract – awarded to the Darlington based company by fabrication specialists Burntisland Fabrications (BiFab) – involved supplying fire and blast relief walls Sign up for the EICOnline newsletter

and specialist fire louvres for BP’s new refrigeration plant at its Kinneil RLPG plant in Grangemouth.

The onshore terminal processes crude oil from the North Sea and is an integral part of the BP Forties Pipeline System.

The company will provide specialised fire louvres which will allow blasts to transfer through the wall systems as well as deflect these up, over and away from hazards.

The contract win adds to the company’s string of multi-million pound deals adding to its already impressive portfolio. Recently the company announced that it will be supplying fire and blast walls to be deployed on the Galloper offshore wind farm awarded by engineering and fabrication specialists Heerema Fabrication Group (HFG).

i

For more information: www.mechtool.co.uk

NES wins CIPP International Payroll Provider of the Year award Manpower specialist NES received the prize for International Payroll Provider of the Year at the 2016 CIPP Excellence Awards.

The awards were established to recognise individuals and organisations who demonstrate payroll and pensions excellence, and their positive impact on the UK economy.

They are the longest running and most respected awards in payroll and as such are a highly sought after industry standard.

NES Global Talent fought off strong competition from activpayroll and Blick Rothenburg to win the title.

Visit www.the-eic.com/Forms/NewsletterSignup

Steve Buckley, NES CFO, said, ‘I am thrilled that the NES Payroll team has got the recognition they richly deserve. Our investment in mentoring, training and industry leading systems means that we can truly offer the best in international payroll services and it’s fantastic to have the leading UK payroll body recognise that we are world beaters.’

The NES payroll team provides payroll services to over 5,000 people, working in more than 70 countries, dealing with more than 30 currencies across the globe.

i

For more information: www.nesglobaltalent.com

Sonardyne welcomes new global business manager

Subsea technology company Sonardyne International Ltd UK, has announced the appointment of Ioseba (Joe) Tena as its new global business manager for marine robotic systems. Joe joins Sonardyne with immediate effect and brings with him extensive experience gained over 20 years working with marine robotic systems, most recently, at SeeByte.

I’m really excited to have been given the opportunity to help drive forward Sonardyne’s offering for this rapidly evolving cross-market sector Joe Tena, Global Business Manager, Sonardyne

i

For more information: www.sonardyne.com

Follow @TheEICEnergy

Join the EIC LinkedIn Group

9

10

Member news

SPX’s new cooling tower provides up to 50% more cooling capacity

Leading designer and manufacturer of evaporative and air-cooled heat exchangers SPX Cooling Technologies Inc’s new Marley NC Everest Cooling Tower, a crossflow evaporative cooling system, provides up to 50% more cooling capacity than any other single-cell, factory-assembled cooling tower.

Featuring the new, patent-pending MarKey™ Drift Eliminators, the NC Everest Cooling Tower achieves the lowest measurable drift rate, down to 0.0005% of circulating water flow, so less water escapes the tower.

The pumps play a fundamental role in the safety and operation of the reactor by pumping the primary coolant, liquid sodium, through the reactor core. This is an integral part of the reactor design and fundamental to its operation.

i

For more information: www.spxcooling.com

SPX FLOW chosen to design next generation nuclear solutions SPX FLOW Inc, a global supplier of highly engineered pumps for nuclear power facilities, has been named an official supply chain partner to TerraPower which aims to produce the next generation of sustainable and economic nuclear energy technology.

SPX FLOW has been chosen to design the pumps for TerraPower’s Traveling Wave Reactor (TWRTM) plant that has the potential to move nuclear energy into a new era.

SPX Flow Technology Ltd

In addition to unmatched cooling capacity, the NC Everest uses up to 35% less fan power to achieve higher energy savings. Its unique design minimises piping and electrical connections to reduce installation costs. Seven-foot doors provide access to the tower’s interior service decks and mechanical components, making routine inspections and maintenance safer and easier.

NC Everest Cooling Tower sound levels have been independently verified per CTI ATC-128 test code by third-party CTIlicensed test agents and certified acoustical engineers. SPX Cooling Technologies’ Marley brand is the only package tower subjected to this rigorous independent sound testing.

In the first phase, SPX FLOW has been commissioned to perform the conceptual design with options to build and test a prototype pump.

The pump will have to meet both the exacting quality standards associated with ASME NQA-1 and Class 1 equipment and all the functional requirements for normal operation and the beyond design basis events such as seismic activity.

The primary sodium pumps are further evidence of the impact that the global supply chain plays in improving the value and efficiency of the next generation of nuclear reactors.

i

For more information: www.spxflow.com

SPX Cooling Technologies Ltd

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

New accreditation to secure digital transformation TÜV Rheinland works to improve security in the digitisation era combining years of experience and expertise in safety with cyber security for industry worldwide.

New EIC members Social media Member round news up

The ‘Industry 4.0’ megatrend poses challenges for companies relating to cyber security both in terms of systems protection as well as product safety and reliability. From component to operator, systems can be compromised as a result of cyber incidents from either inside or out. Therefore, cyber security is now a key factor in functional safety, automated data exchange and the availability of interconnected systems. TÜV Rheinland supports its customers in assessing, analysing and preventing dangers presented by digitisation and interconnection.

TÜV Rheinland functional safety and IT-security experts provide global industrial companies and plant operators consultancy, solutions, implementation, testing and certification to assist with their safe and secure digital transformation process. Throughout its entire life cycle, the secure operation of a plant is based on three core elements: certified quality components; management systems for all life-cycle phases from design and development to operation and maintenance; qualified personnel.

Heinz Gall, head of the TÜV Rheinland accredited Functional Safety & Security in Industrial Automation certification body, expects the increasing importance of ‘security by design’ strategies being implemented to minimise risk with early detection and reduce associated costs.

TÜV Rheinland is accredited by the German Accreditation Body (Dakks) in accordance with the comprehensive EN ISO/IEC 17065:2013 standard as well as industry security standards (IEC 62443-4-1 series). The company’s Dakks accreditation will now be extended to the USA and officially implemented throughout the country. TÜV Rheinland is proud to be one of the accredited laboratories listed on the official US EDSA/ ISASecure website.

i

For more information: www.tuv.com

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – Energy Industries Council (EIC).

Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy Our delegation to #Iran started today with meetings in Tehran. We’re excited to bring UK firms to the country to explore new opportunities

The EIC @TheEICEnergy Bookings are now open for all UK companies to exhibit at the EIC pavilion at Offshore Europe: bit.ly/2hUKGCQ

Energy Industries Council (EIC) The latest issue of the EIC’s flagship publication Energy Focus is now available online at: http://www.the-eic.com/News/ EICPublications/EnergyFocus.aspx

11

12

January 2017

Forthcoming events 18 January Industry Overview

Fundamentals of LNG EIC London

24 January Corporate Entertainment

January Networking Evening The Westin Hotel, Dubai

25 January Business Presentation

18 January Management Course

EICDataStream Overview EIC Houston

Members Update Morning EIC Teesside

26 January Sector Showcase

19 January Management Course

EICDataStream Overview

EIC Houston

20 February Overseas Delegation

7 February Technical Workshop

Introduction to Pipe Supports Carpenter & Paterson Ltd, Welshpool

Overseas Delegation to Kuwait Kuwait City

9 February HSE Training

Pressure Equipment Directive Lloyd’s Register, EIC London

21 February HSE Training

The ATEX Directives SGS Baseefa, Buxton

21 February Management Course

10 February Corporate Entertainment

Topgolf Houston

EICDataStream Overview EIC Houston

Sponsorship opportunities and early booking discounts are available. Contact natalia.bueno@the-eic.com

23 February Industry Overview

14 February Overseas Exhibition

Egypt Petroleum Show (EGYPS) CICEC, Cairo

16 February Corporate Entertainment

EIC Middle East Golf Tournament 2017 The Els Club, Dubai

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

© 2016 iStockphoto LP

February 2017

EIC Rio de Janeiro

Nuclear Sector Showcase

Fundamentals of Nuclear

National Skills Academy Nuclear, EIC London For more information and to book visit www.the-eic.com

Forthcoming events

March 2017

2 March Technical Workshop

Introduction to Compressors

Dresser-Rand, a Siemens Business, Frimley

7 March Management Course

Negotiation Skills EIC London

8 March Industry Overview

Fundamentals of Oil and Gas Nassima Royal Hotel, Dubai

15 March Technical Workshop

Introduction to Energy from Waste Lakeside EfW, Slough

15 March Business Presentation

Opportunities in Vietnam

4 April Sector Showcase

EICDataStream Overview EIC Houston

27 March Overseas Delegation

Overseas Delegation to Uganda Kampala and Lake Albert

28 March Technical Workshop

Introduction to Joint Integrity HTL Training Services, Cramlington

30 March Industry Overview

Fundamentals of Natural Gas EIC London

This course will look at the growth of the natural gas market, consumption and global trade through to thermodynamics, processing and equipment used.

It will develop your understanding of the workings of the industry, key success factors for projects and opportunities available. Contact emily.light@the-eic.com

11 April Industry Overview

Photos Š 2003-2017 Shutterstock, Inc

April 2017

Vietnam venue tbc

16 March Management Course

Opportunities in Iran Dubai venue tbc

Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Fundamentals of Upstream EIC Houston

Follow @TheEICEnergy

Join the EIC LinkedIn Group

13

14

One-to-one

with Brian Connolly Sales Manager for Europe and the Middle East, S3-ID S3-ID is an international company providing complete real time location awareness solutions. It manufactures a range of products for personnel tracking, access control, safety and security to travel logistics management for the oil and gas sector.

Q

A

Your company provides world class location services.

Can you explain how your products work?

Through our patented RFID technology we locate, muster and provide access control globally to the oil and gas sector. By providing personnel with the S3ID tags we ensure that both refineries and platforms know where the right person is, at the right time.

Our configurable software integrates with daVinci and Vantage for applications in the North Sea but we are able to integrate into any end user requirements. Our new Checkpoint product is delivering cost savings through reduced mustering times, and also increasing safety.

Q

What was the highlight of 2016 for S3ID?

A

Undoubtedly our success in the Middle East market.

Working with local partners and having strong relationships with the end user, we secured our first large project for the Al Nasr project. I think maintaining our market leader position with the award of the Maersk Culzean project in the North Sea showed how we have tailored our solution to the reduced cost market.

Q

Traditionally, your market has been the North Sea. How have you come to branch out into the Middle East?

A

Q

A

Get in touch Share your news and views...

As we are all aware the market is challenging and to rely on our core markets would not have delivered on our strategy for growth. We focused on the Middle East market because our solutions can improve security as well as safety. Our access control products integrate with our mustering and tracking solutions – that matched what operators are looking for in the Middle East. We then worked hard on finding the right local partner who can support day to day requirements, knowing that technical back up was available 24/7 from S3ID in the UK. As an SME what do you find are the biggest challenges of working with big operators/ contractors?

Our solutions cover a variety of departments from HSE and procurement to telecommunications so finding the decision makers can be difficult. We have found that detailed knowledge of the project and its objectives, gives the client confidence that you know their challenges. Aligning this with a local partner who are approved with the operators and contractors, and having a solution that can reduce cost or improve safety is a key message. We believe that once you have this in place, operators will listen whether you are an SME or a blue chip, if you can deliver total cost of ownership savings.

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Q

What do the next 12 months have in store for S3-ID?

A

Our model for the Middle East is working but we are always looking to new markets and looking at ways we can improve on our existing models. Our Checkpoint solution has been and will continue to be our key to success. Our recent order for the Maersk Culzean project will benefit from this solution, affirming our commitment to the North Sea market.

We will continue to invest in R&D to look further into how we can meet the security and safety needs for both offshore and onshore requirements while focusing on reducing costs.

Any EIC member who wishes to be profiled in this section please contact Edward White, EIC Editor and Communications Manager at: edward.white@the-eic.com

15

The two ATEX Directives – Technology and the Law

Ron Sinclair, SGS Baseefa, says, ‘Most serious industry will be aware of the ATEX User Directive 1999/92/EC, its impact and their related responsibilities, manufacturers however often do not have the same awareness. The Dangerous Substances and Explosive Atmosphere Regulations (DSEAR) has been operative in the UK since July 2003, but we still get blank looks when we tell a manufacturer that because they store acetylene gas cylinders on the premises, or use bulk solvent for cleaning, they are obliged to conform to the directive.

DSEAR classifies hazardous areas into three different zones: Zone 0 where an explosive atmosphere is consistently present, Zone 1 where an explosive atmosphere is likely to occur and Zone 2 where an explosive atmosphere is unlikely to occur. It is crucial to understand these zones and where your product sits, to ensure that the risk of an explosion is as low as reasonably practicable (ALARP).

‘1999/92/EC and DSEAR have not changed, but on 20 April 2016 the new directive 2014/94/EU came into force, replacing 94/9/EC. Known as a recast the intention was to align the requirements with the New Legislative Framework, applied to the majority of trading directives.

Nonetheless, there are some significant changes that affect those involved in the distribution train of a product, as well as the relevant notified bodies.’

To make you aware of these changes and understand how they may affect your products and services, SGS Baseefa will be hosting The ATEX Directives on 21 February 2017 at its training centre in Buxton.

This course covers key legal requirements and provides a sound technical explanation of Ex Protection. Starting with the Bunsen burner, delegates are taken step by step through the crucial difference between a fire and an explosion, as well as how the physical shapes of objects affect the way explosions develop. This leads to an explanation of how the protection concepts work and why there are unexpected requirements for installation, such as the minimum permitted distance between flameproof enclosures.

This is designed to appeal to those with a technical background, but little knowledge of explosion protection techniques, as well as to more experienced practitioners who will benefit from an update on the most recent directive. If people have a real understanding of why they must do or comply to something, they are far more likely to do so, this course is designed to ensure that the basic understanding is there.

Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

© 2003-2016 Shutterstock, Inc

EIC training

Ron Sinclair MBE has over forty years’ experience in the industry and has been delivering training courses for over twenty years. In addition to his role as Technical Manager at SGS Baseefa Ltd, Ron is chair of both the British and European Standards committees, writing standards for electrical equipment for hazardous atmospheres. He is also chair of the IECEx Service Facility Certification Committee and a vice-chair of the European Notified Bodies Group for ATEX. He was recently involved in writing the European Commission’s guidelines for the new product directive.

You may also be interested in:

The Pressure Equipment Directive Thursday 9 February 2017 Lloyd’s Register, EIC London

A comprehensive appreciation of the Pressure Equipment Directive PED 2014/68/EU, from product classification to CE marking and technical documentation. You will understand the necessary requirements to gain and maintain certification and compliance.

Other upcoming training

An Introduction to Pipe Supports Tuesday 7 February 2017 Carpenter & Paterson Ltd, Welshpool

The Fundamentals of Nuclear Thursday 23 February 2017 National Skills Academy Nuclear, EIC London

An Introduction to Energy from Waste Wednesday 15 March 2017 Lakeside EfW, Slough

An Introduction to Joint Integrity Tuesday 28 March 2017 HTL Training Services, Cramlington

Contact: training@the-eic.com

Follow @TheEICEnergy

Join the EIC LinkedIn Group

16

Middle East news Regional update

The EIC Dubai team would like to take this opportunity to wish all of our readers a happy and prosperous new year. As with the start of any new year, one tends to approach the Terry W illis time after a very enjoyable festive season with a little bit of trepidation, wondering what the next 12 months may have in store.

Perhaps 2017 might be particularly significant, given the current uncertainty that the global oil and gas sectors continue to face, especially with the dawn of a new political era in the US and all that it might bring to the world stage.

Our second delegation to Iran last month proved to be successful with a glimpse of light appearing from the financial community who are now appearing to handle a limited number of transactions from Iran on a small scale, which is certainly a positive step. We are now working towards the oil show which is taking place in Tehran from 6 to 9 May, the week after OTC which we are sure will provide for some interesting travel arrangements.

Next month sees us returning to Kuwait. With the release of a stream of new multi-billion dollar contracts from all sectors last year, the time couldn’t be better for UK companies to explore ways in which they can grasp the many opportunities that the market is currently offering.

This was amply illustrated at EIC Connect in Manchester where a representative of Kuwait National Petroleum Company set out in some detail its plans for a new refinery as well as expansion for their other two existing plants. This delegation comes hot on the heels of our participation at the first Egypt Petroleum Show and our golf tournament at the Els Club on 16 February.

Preparations continue for EIC Connect Oil & Gas UAE 2017 on 16 May. Please keep an eye on the EIC website for developments.

Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Saipem wins US$1bn LTA contracts with Aramco

Saudi Aramco has awarded Saipem two engineering, procurement, installation, construction contracts under the long-term agreement (LTA) programme for the development of fields in Marjan, Zuluf and Safaniya. The contracts include the implementation of subsea systems in addition to the laying of pipelines, subsea cables and umbilicals, platform decks and jackets. The two contracts will also include additional maintenance and dismantling works on the existing platforms already operating in the fields.

© 2003-2016 Shutterstock, Inc

January is the time of year when representatives from the global renewable energy markets come together at the World Future Energy Summit (WFES). The UAE and Abu Dhabi in particular have continued to lead the way in establishing themselves as global players in this emerging sector. It is generally agreed that clean renewable energy will continue to play an increasing role in the overall energy mix in the years to come, so for any company looking to diversify into this exciting sector, WFES is certainly an event not to miss.

Regional news

Mott MacDonald awarded EPC contract for new Xarajyan oil terminal

Qaiwan Group has awarded Mott MacDonald engineering, procurement and construction management services (EPC) for the Xarajyan oil terminal in Iraqi Kurdistan. Mott MacDonald will design the first phase of the terminal, auxiliary utilities and infrastructure facilities. The project is scheduled to be completed by Q2 2018.

Forthcoming events

Please go to page 12 to see upcoming events in your region

17

Asia Pacific news In November, alongside DIT representatives from Hanoi and Ho Chi Minh City, we visited a number of Vietnamese oil and Azman gas companies including Nasir PetroVietnam, Vietsovpetro, PTSC, Japan Vietnam Petroleum Company, Toan Thang and Repsol Vietnam.

Following our successful visit, we are planning to organise a joint event with DIT Vietnam in February at which there will be four speakers from PetroVietnam and their associated companies and subsidiaries giving presentations on their future projects and supply chain requirements for 2017-18.

The Offshore South East Asia (OSEA 2016) conference and exhibition was held from 29 November to 2 December 2016 in Singapore. The EIC hosted the UK Pavilion with 17 companies exhibiting. With over 1,000 exhibitors from 48 countries and 18 international group pavilions, an extensive range of equipment, innovations and services were on show. We also organised the UK Networking Reception held at The British Embassy in Singapore together with DIT Singapore, the Singapore British Chamber of Commerce, Scottish Development International and Subsea UK, enjoyed by more than 200 invitees.

EIC Asia Pacific and DIT Indonesia organised a joint briefing session on 2 December 2016 which focused on the outlook for the Indonesian energy industry for 201718 with speakers from SKK Migas, Pertamina, and Saka Energi giving presentations. The event was attended by 50 delegates who all took the opportunity to connect with these key Indonesian players.

We are planning to organise another joint event in March, this time with the DIT in Bangkok, Thailand, and the Petroleum Institute of Thailand. We are expecting speakers from the national oil company PTTEP as well as from major EPCs to present their work programme for 2017-18 and also to share their supply chain requirements.

Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

Regional news

China pushes nuclear power in five-year plan

The National Energy Administration and the National Development and Reform Commission jointly released the 13th Five-Year Plan for power development in November. During the next five years, the Chinese government plans to put approximately 30GW of nuclear energy facilities into operation and start construction on over 30GW of facilities. China targets 58GW of installed nuclear power by 2020.

DONG Energy A/S

Regional update

DONG scopes out 2GW offshore wind quartet in Taiwan

Denmark’s DONG Energy is completing the environmental impact assessments at four offshore wind sites off Taiwan. The potential projects will have a combined capacity of 2GW. According to the developer, the quartet of projects, located in the waters of Changhua region, could be a springboard to meeting the Taiwanese government’s ambition of having 3GW of offshore wind switched on by 2025.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around the world

Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Follow @TheEICEnergy

Join the EIC LinkedIn Group

18

North and Central America news Regional update

Happy New Year! 2017 will be an exciting and busy year for the EIC North and Central America office, with the inaugural EIC Connect Oil & Gas USA exhibition and conference taking Amand a Duho n place on 5 October in Houston. Last month, we hosted the first Advisory Board meeting for this event and will elect the chair and vice-chair this month. The Houston team and the Advisory Board are working diligently to confirm the agenda as well as sponsorship opportunities, and are committed to a successful event. If you are interested in being a speaker, sponsoring, exhibiting or attending the event, please contact natalia.bueno@the-eic.com We are working to deliver valuable events and training over the course of the year. Our team is monitoring developments in Mexico, across the oil and gas, power and renewable sectors and will partner with the Department for International Trade (DIT) Mexico City to deliver a series of roundtable events on sector opportunities, which will be held in Houston throughout 2017.

We will host events for companies seeking to diversify with a focus on the offshore wind and nuclear sectors.

We are also working with leading industry companies to continue delivering presentations to help members identify and win business in the region.

I would also stress that members should use EICDataStream in conjunction with these events to ensure that they make the most of all the business opportunities on offer. We are now hosting monthly, free EICDataStream training sessions at our Houston office, with the next one taking place on 18 January. We also have state-of-the-art video conferencing capabilities and can host bespoke trainings via video across the region.

For more information or to schedule a training session, please contact michael.borrel@the-eic.com Houston is at the centre of the global energy industry. To work in this market a local presence is important. If you need to find out about our EICLaunchPad services (hot desks, conference facilities, virtual and serviced offices), as well as upcoming events and training, please don’t hesitate to contact me.

Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Regional news

20bn barrel US oil discovery

A recent assessment by the US Geological Survey has found that the Wolfcamp shale formation in the Midland area of West Texas holds an estimated 20bn barrels of accessible oil along with 16tn cubic feet of natural gas and 1.6bn barrels of natural gas liquids. The find triples the amount of recoverable crude found in the Bakken-Three Forks region in 2013, and makes it the largest estimated continuous oil accumulation assessed in the US to date. These resources are technically available due to hydraulic fracturing and horizontal drilling.

Canada sets sights on eliminating coal by 2030

The Canadian government has set a target of eliminating traditional coal-fired generation from the country’s electricity mix by 2030. To hit the target Canada will have to generate 90% of its power from non-carbon emitting sources by 2030, up from 80% today. Hydro accounts for 60% of Canada’s electricity generation, with coal accounting for 9.5% of the mixture. Gas currently contributes 8.5%, while non-hydro renewables are growing swiftly.

Forthcoming Events

Please go to page 12 to see upcoming events in your region

19

South America news Regional update

We expect positive changes in both Brazil and the oil and gas sector in 2017. We hope that the largest country in South America will benefit from measures taken by the Brazilian government in 2016 to encourage an economic recovery, however moderate.

Two other shows will also be highlighted. In Macaé, Brazil Offshore will attract the main companies in the offshore sector. And in Rio, OTC Brazil will demonstrate that it has become the main event in the oil and gas sector.

Clariss

e Roch

a

Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com UK Energy in Brazil 2016

The industry is already planning for trade shows and major events this year. UK Energy in Brazil will bring together leading UK suppliers and promises to build a bridge between these companies and the larger companies that generate demand in the energy industry. It will take place in Rio de Janeiro on 21 March and the EIC is supporting it with an overseas delegation.

Regional news

Three bidding rounds in 2017

The Brazilian government is expected to award a variety of exploration blocks in the country following three bidding rounds planned to take place this year. Activity will kick off in March with the country’s 4th bidding round focusing on mature assets. It will offer 10 onshore fields located in the Espírito Santo, Recôncavo, and Potiguar basins and will be aimed at independent oil companies, without fixing local content requirements.

Brazil’s 14th bidding round for regular exploration concessions, meanwhile, is scheduled to take place in September and is expected to offer both onshore and offshore blocks, located in shallow and deep waters. Highly coveted blocks in the pre-salt province, however, will be part of a third bidding round offering production-sharing contracts. It is understood that this auction will offer pre-salt areas located adjacent to prolific fields such as Carcará, Sapinhoá and Tartaruga Verde.

Pre-salt bill approved by congress

New legislation that will open Brazil’s pre-salt province to private operators has been approved by congress and, at the time of writing, is due to be signed into law by President Temer. The bill removes the requirement that Petrobras must be the sole operator of pre-salt fields in the country, with a minimum equity of 30%.

Bolivia and Paraguay announce interconnection plan

Government authorities from the two countries have signed a joint document requesting financing from the Development Bank of Latin America (CAF) for the construction of a power interconnection. The project is spearheaded by Ende and Ande, the state-owned power holdings of Bolivia and Paraguay respectively.

EIC Newsbriefs membership@the-eic.com

Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Keeping you up to date with energy news from around the world

Follow @TheEICEnergy

Join the EIC LinkedIn Group

Contact us ABERDEEN TEESSIDE LONDON HOUSTON

DUBAI KUALA LUMPUR RIO DE JANEIRO

EIC Head Office and Southern Region 89 Albert Embankment London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com

EIC Northern Region

Unit 1, Business Village Chapell Lane (South) Wynyard Park Teesside TS22 5FG Tel +44 (0)1642 379 973 Email teesside@the-eic.com

EIC Scotland

72 Carden Place Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com

www.the-eic.com

EIC Middle East

PO Box 54455 Office No 5WA 228 West Wing Building 5A Dubai Airport Free Zone Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com

EIC Asia Pacific

Lot 17-01 Level 17 Menara HLA No 3 Jalan Kia Peng 50450 Kuala Lumpur Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com

@TheEICEnergy

EIC North and Central America

Suite 925 11490 Westheimer Houston Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com

EIC South America Ed. Manhattan Tower 26th Floor Avenida Rio Branco 89 20040-004 Rio de Janeiro - RJ Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

Energy Industries Council (EIC)