Inside Energy May 2020

EIC Inside Monthly news for EIC members May 2020

New EIC president EIC welcomes Campbell Keir

Member news

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The future of energy transition

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Sector analysis

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Sector analysis The future of

energy transition Energy transition is a path focusing on transforming the energy mix to reduce emissions, by ensuring we strengthen the global response to climate change and meet the Paris agreement. The use of renewables is a key part of this process, and although the challenge of decarbonising certain sectors such as industry could be difficult as it requires high-grade heat, the use of hydrogen for example provides a route for this transition. However, there are other elements that need to be considered as well. Examples include improving energy efficiency using technologies such as Carbon, Capture, Utilisation and Storage (CCUS) during hydrogen production from natural gas, hydrogen production from renewable energy and implementing biofuels for targets such as the International Maritime Organisation (IMO) 2050 goal which aims to reduce shipping emissions by the year 2050 to 50% of their 2008 level.

The current lower price of oil due to the impact the coronavirus pandemic has had on demand, where major economic activity has been suspended, has led to mixed opinions on the effect on energy transition. On one hand it is believed that low energy prices reduce the economic incentive to conserve and utilise it more efficiently. It is also believed that energy companies could find it harder to fund their renewable energy investments if the current situation starts leading to more spending cuts. On the other hand, the current oil price volatility can’t be ignored.

The recent oil price war was due to disagreements between Russia and Saudi Arabia around production cuts in the OPEC+ deal. The oil price vulnerability in a scenario like this could justify a structural shift away from fossil fuels, and investors would prefer the long-term price stability which renewables offer.

Tayo Id

owu

Budget reduction by companies cannot be underestimated during this global crisis, and we have observed announcements such as Shell’s US$5bn cut in spending.

Therefore, it is likely that there will be some short to midterm impact on the energy transition. However, companies will also see the need to diversify assets and ensure future adaptability. The factors that led companies into beginning the energy transition such as the rise of new technologies like electric vehicles, government goals to tackle emissions and the oil price volatility which affects project finance in some cases will be here even after things go back to normal following the pandemic.

The head of the International Energy Agency said in an interview in March 2020 that stimulus packages to prop up economic recovery marked an opportunity for governments to shape policies in line with climate action, and invest in clean energy technologies that accelerate the energy transition.

He mentioned that a well-designed package could offer economic benefits as part of this transition. BP has said it will be cutting spending in 2020 by 25%, however it still plans to introduce US$2.5bn of cost savings by the end of 2021 through the digitalisation and integration of its businesses. The role digital technology will play in the energy transition is worth mentioning, as it allows a decarbonised system run in a stable and efficient manner.

On the utility side, it allows system monitoring and tracking key process parameters. Royal Dutch Shell has also announced plans to collaborate with Udacity to digitally train its workers in artificial intelligence, and this training method of choice is expected to continue growing for companies who need employees up to speed and to benefit from its remote advantage.

Whatever the case is regarding the pace of the energy transition, companies will be striving for new ways of working which offers them long term flexibility and ensuring carbon emissions targets are met.

Tayo Idowu, Energy Analyst, Midstream & Downstream tayo.idowu@the-eic.com

Designed and published by the Energy Industries Council 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 EIC (Energy Industries Council)

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Inside this issue...

In this edition we are delighted to talk to our newly appointed president Campbell Keir who Lucy C hakao dza took the helm from Chris Haynes OBE in April. We hear his views on the current market crisis, future of energy and his vision for EIC in his new role.

Tayo Idowu, EIC’s midstream and downstream energy analyst, explains how using technologies such as carbon, capture, utilisation and storage (CCUS) during hydrogen production from natural gas and renewable energy can strengthen the global response to climate change and meet the Paris agreement. Accelerating the energy transition.

This month’s guest editorial comes from Waves Group who outline the critical role the global network of subsea cables plays in transporting power to industry and millions of households.

The global outbreak of COVID-19 has caused significant upheaval and uncertainty, with all the major energy exhibitions planned for the next four months being postponed until the second half of 2020. The EIC’s overseas events team aims to help our exhibitors make the most of this time by launching a new exhibitor support kit.

The packs are available on the EIC exhibitions website and will be updated regularly. Support will include exhibitor training, building market knowledge, targeting potential customers and importantly, connecting with fellow exhibitors and EIC members to discuss and share views on current topics.

Contents Sector analysis

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Inside this issue...

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EICDataStream 4

As outlined in the last edition, EIC has now moved to an online platform for our events, re-imagining our EIC LIVE e-vents to keep you abreast of the latest opportunities and developments. https://lnkd.in/g-PAcq2

One-to-one 6

Best wishes and please stay safe.

Member news

Lucy Chakaodza, Editor, Media and Communications Manager lucy.chakaodza@the-eic.com

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Social media round up 13

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New EIC members

Forthcoming events

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Guest editorial

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Overseas events

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UK and Europe news 19 Middle East news

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Asia Pacific news

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North America news

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South America news 23

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DataStream INDONESIA

Global opportunities US

SURINAME

Marunda Centre LOBP Expansion

VG Calcasieu Pass LNG Export Plant

Block 58 Exploration Drilling Programme

Operator: PT Shell Indonesia Value: US$1bn Shell Indonesia will be investing in doubling the production capacity of its Marunda Centre lubricants oil blending plant (LOBP) to capture a bigger slice of the domestic market. The investment value and timeline of the project development has yet to be released.

Operator: Venture Global LNG Value: US$5.8bn Baker Hughes has successfully completed a string test on the first mixed refrigerant compression system of the project. The test aimed to prove that all system components function together under normal operating conditions.

Operator: Apache Value: US$300m Total and Apache Corporation have made a second significant discovery with the Sapakara West-1 well on Block 58. The well was drilled in a water depth of 1,000 metres and encountered 79 metres net pay oil and gas condensate.

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For more information on these and the 9,000 other current and future projects we are tracking please visit EICDataStream

BURKINA FASO

GREECE

PAKISTAN

Yeleen Solar Power Project

Crete Interconnector Project

Thar Coal Fired Power Plant

Operator: SONABEL Value: US$150m A 208MW solar plant consisting of four 52MW solar plants. SONABEL has invited international competitive bids for undertaking EPC and 2 year O&M works. The successful bidder will also provide technical assistance for the project. The last date for the submissions of bids is 9 June 2020.

Operator: ADMIE SA Value: US$1.059bn Construction of a 1GW subsea interconnection between Crete and mainland Greece. The power line forms part of the wider EuroAsia Interconnector project and will be divided into two phases. The Siemens-Terna consortium has secured a contract for the installation of converter stations.

Operator: Shanghai Electric Group Value: US$1bn Two 660MW coal fired power plants under the China-Pakistan Economic Corridor (CPEC). Shanghai Electric has reached financial close for the coal mine project featuring the 1,320MW development. The project is currently under construction and operations are scheduled for 2022.

SupplyMap The only database of UK supply chain companies across all energy sectors Need ayour demonstration of EICDataStream?

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AssetMap

EICAssetMap Gulf of Mexico Join us

Track all major OPEX assets and facilities in key global markets including the Gulf of Mexico EICAssetMap, the EIC’s operations and maintenance (O&M) database, now maps all major facilities across all energy sectors in the UK, Norway, Brazil, Gulf of Mexico and the ASEAN and GCC states.

This fully interactive map database is updated daily with information about existing facilities and the key contacts at these facilities so you can find out who to do business with and contact them.

EICAssetMap is the only O&M database to map major energy assets across all sectors in key markets in the Gulf of Mexico, both onshore and offshore.

key energy markets around the world in all energy sectors to find new O&M business opportunities Search for operational assets in

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One-to-one with Campbell EIC President

Keir

EIC is delighted to announce Campbell Keir as its new president.

Mr Keir was appointed in April 2020 taking the helm from Chris Haynes OBE, who was president for three years. We talk to him about the future of energy and his vision for the EIC in his new role

Q

Congratulations on being appointed EIC’s new president. What role do you see yourself and the role of EIC playing in the future in a rapidly changing landscape?

I see my role as president to help Stuart Broadley as the CEO and his team achieve their objectives, especially in the longer-term, especially as we transition to Net Zero 2050. In my role, I want to act as an advocate for the energy sector on behalf of EIC and its members at a time when the sector and supply chain is undergoing a period of transition. While net-zero 2050 is a clear target, that doesn’t mean we can abandon the hydrocarbon industry.

A

Globally we will still need this industry to provide energy which will not only support developing and emerging nations but emerging markets too as their economies grow.

Yet, we must do that in a socially responsible way. We need to be very clear with EIC’s stakeholders what EIC stands for. In 10-20 years, I expect EIC will look very different. It isn’t going to be easy, and public perception will put a lot of pressure on extractive industries. Managing expectations will be essential.

I believe EIC has a strong role to play in the UK, and see the organisation strengthening its position overseas.

Q

What measures can government departments such as DIT and trade associations like EIC take to assist businesses at this time?

EIC, like all trade associations, can play a vital role. Firstly, we have got to make sure our members know what’s on offer from the government, not just the new measures taken in light of COVID-19, but also what exists already. It’s surprising how few companies are aware of how UKEF (UK Export Finance) can assist companies export e.g. payment guarantees. It’s the role of EIC to make its members aware of these different types of assistance schemes.

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In the current crisis, it’s vital that EIC have an open dialogue with government on how the industry is responding to the measures that have already been introduced and whether they are enough, or more is needed. For example, in my capacity working for British Expertise, we have been giving feedback and asking industry what rules and regulations can be relaxed to allow business and industry to continue to operate?

We need to prepare for returning to normal business.

Perhaps it may proceed at a different pace around the world depending on the situation in a particular region or country.

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Maybe parts of South East Asia will return to normal ahead of the rest of the world, with Europe following, we have to wait and see, let’s hope it’s as quick as possible. In this return to normal business, it is important EIC helps its members identify where the opportunities are and how to access them.

Q

Part of your role at DIT was leading on infrastructure.

How are the UK’s leading firms helping companies win major international contracts in this current climate?

With regards to energy and infrastructure, there are huge opportunities globally.

For example, if I focus on infrastructure, the DIT has done a lot of work in Latin America in countries such as Peru, Brazil and Colombia.

To meet the demands of their rising population and growing prosperity, developing and emerging economies like those in Latin America will need assistance to upgrade their infrastructure, whether it be roads, ports, airports or railways. The UK has a lot to offer, especially in integrated infrastructure planning, front end engineering, and so on. What is important is that these markets understand the holistic UK offer. If we look at the oil and gas sector, decommissioning is a huge opportunity worldwide.

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One-to-one

The UK has significant experience in decommissioning (oil and gas, civil nuclear).

Rather than having individual companies bidding around the world, we need to take a more joined-up approach bringing the industry commercial/ technical offer together with the City of London package alongside government-togovernment support to win against the competition.

Q

What impact will the current market crises such as the oil price crash and COVID-19 have on the UK supply chain?

We are entering into new territories with the COVID-19 pandemic. Who would have predicted the impact on people’s health and that large parts of the global economy would shut down. While the priority is to save lives, we should try to protect the core competencies and capabilities of our key industries as we did when the last oil crisis occurred.

Government intervention helped protect core capabilities, including initiatives such as the Aberdeen City Deal and formation of the Oil and Gas Technology Centre. We need to help the government identify what is required to preserve core capabilities and competencies ahead of a return to growth.

A

Q

COP26 has now been postponed to 2021 due to COVID-19, how can the government keep up the momentum on its climate change commitments?

I am in two minds whether a side effect of the coronavirus pandemic will be to help us focus on the climate change agenda or not. Governments around the world are quite rightly currently focusing on managing the crisis, saving lives and protecting the economy. At some stage, we will return to the climate change debate.

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The global economic shutdown has resulted in emissions in the UK dropping dramatically.

People talk about being able to hear the birds singing in London. Fish have returned to the waters of Venice, and the haze has cleared from cities around the world.

Perhaps it is becoming much clearer to the general public the impact human activity is having on our climate and wellbeing and this may put additional focus on the climate change debate and pressure on leaders to keep up the momentum on its commitments in this area. Or perhaps we will return to our old ways – who knows?

The UK has made tremendous progress, we increased our electricity supply through renewables and are now less reliant on fossil fuels. Still, we need to go further in addressing heat and transport issues and I don’t believe the climate agenda is going to disappear.

I think it will firmly be a priority once we are out of the woods with COVID-19.

Q

Looking ahead to future investments, what lessons can we learn from offshore wind development in the UK in the past 10 years?

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The implementation of offshore wind was heavily backed by strong, clear governmental policy. Also, the industry knew what it was going to get in terms of commercial rewards and then applied technology to bring the costs down. The winning formula was clear government policy, commercial robust investments and application of technology.

Q

EIC will be holding its second Energy Exports Conference (EEC) later this year. How important is such an event in facilitating the supply chain and international trade?

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A

As EEC was an inaugural event focusing on exports, we were quite surprised at how successful it turned out to be. This year’s event will be important in bringing even more global opportunities to UK supply chain companies. Traditionally, a lot of trade is carried out by taking a delegation of representatives from around 15-30 companies, overseas.

This is a relatively small percentage of the SME population in the UK. If you can bring the global market to the UK through events such as EEC, the opportunities are endless. It’s easy for SMEs to travel to Aberdeen and other parts of the UK to attend a conference and if you can set them up right and wet their appetite, you can get them on that export path. I am still very much in favour of doing overseas missions, but I think there is a strong role to play in bringing global companies to the UK. Events such as EEC are key in bringing opportunities to the UK supply chain.

Campbell Keir has more than 30 years of professional experience in the oil and gas industry.

After graduating with a master’s degree, he joined Shell International as a petroleum engineer. Mr Keir has worked in operations and technical positions in the Netherlands, Malaysia and Abu Dhabi followed by a series of senior roles throughout the Middle and Far East. He spent seven years as country chair and VP for Shell in Kazakhstan. In 2015 he was seconded for two years into the Department for International Trade (DIT) as deputy director for energy then joined DIT as deputy director of energy and infrastructure.

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New EIC members NEW PRIMARY AMERICAS MEMBER

NEW RENEWABLE ENERGY MEMBER

Baggio Transportes Ltda

Cathcart Associates Energy

NEW BRAZIL MEMBER

CENTRIC Energy Solution Ltda

Rua Bandeira Paulista, 600 Room 141 Sao Paulo 04532-001 Brazil

40 George Street Edinburgh EH2 2LE

Av Presidente Wilson, 231 9th Floor Rio de Janeiro RJ – 20031 Brazil

The Nominated Representative is Mr Pedro Arruda, Managing Director

The Nominated Representative is Mr Luke Westendarp, Director

The Nominated Representative is Mr Eduardo Sessa, Managing Director

Telephone +55 11 3230 9936

Telephone +44 (0)131 510 9100

Telephone +55 21 4560 3024

Email pedro.arruda@baggioltda.com

Email luke.westendarp@ cathcartenergy.com

Email eduardo.sessa@ centricenergy.com.br

Web www.baggio.it

Web www.cathcartenergy.com

Web www.centricenergy.com.br

Baggio is an Italian multinational focused on the multimodal transportation of oversized cargoes. The most important share of its clientele is in the energy sector, as well as EPCs that work on such projects.

Cathcart Energy is a recruitment company specialising in the renewable energy industry. With offices in Edinburgh, Hamburg, Lyon and Malmo, Cathcart Energy supports its customers to find the best staff for the green power sector across Europe.

CENTRIC assists your company to break into the Brazilian energy market, providing business development consultancy, focusing on its best value proposition in alignment with local customers’ needs.

Baggio’s offices (Italy, Brazil, USA, UAE, Kuwait, Algeria, Saudi Arabia) together with the network of qualified agents all over the world allow the company to perform services with a high level of customisation and commercial competitiveness.

CENTRIC can also be your company’s partner in Brazil, strategically marketing your solutions, technology or products in one of the biggest and growing energy markets in the world.

Ethics and integrity, commitment, service excellence, respect for people and sustainability are the core values CENTRIC takes into business it does.

Your energy solution provider and business developer in Brazil.

9-10 September 2020 • Jakarta

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New EIC members

NEW GCC MEMBER

Inmarsat Communications Co LLC

NEW EUROPEAN GLOBAL MEMBER

PROTEGO®

NEW GLOBAL MEMBER

Smulders Projects UK

Industriestr 11 Braunschweig 38110 Germany

Hadrian Way Wallsend NE28 6HL UK

The Nominated Representative is Mr Thomas Hembach, Strategic Marketing Manager

The Nominated Representative is Ms Britt Weckx, Marketing Co-ordinator

Telephone +9714 2221 9200

Telephone +49 5307 809 0

Telephone +32 14 408 158

Email gary.bray@inmarsat.com

Email thomas.hembach@protego.com

Email britt.weckx@smulders.com

Web www.inmarsat.com

Web www.protego.com

Web www.smulders.com

Inmarsat is a leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organisations, with a range of services that can be used on land, at sea or in the air.

Since 1954, PROTEGO® has built and provided safety devices and tank equipment, now with the help of more than 600 employees worldwide. It is the technology leader within its area of expertise.

Smulders is an international steel construction company with more than 1,000 employees working across facilities in Belgium, Poland and the United Kingdom.

The company has a proven track record in the engineering, construction, supply and assembly of heavy, technically complex steel structures. Smulders is active in the following markets: civil and industry, offshore oil and gas and offshore wind.

Festival Tower – Unit 2303 Dubai Festival City PO Box 27313 Dubai, UAE The Nominated Representative is Mr Gary Bray, Director Middle East – Enterprise

Inmarsat Enterprise is a leading global provider of satellite-enabled connectivity and managed connectivity services for landbased organisations. Inmarsat is enabling the Industrial Internet of Things (IoT) and helping transform business outcomes across a diverse set of sectors, including agriculture, aid and NGO, media, mining, oil and gas, renewable energy, transport and utilities.

PROTEGO® provides global services to its customers which include research and development, applicationspecific engineering, overall protection system design and safety awareness training.

Customers know they can rely on the company’s research capabilities, engineering expertise and high quality products for the up and downstream oil and gas, petroleum, chemical, pharmaceutical and bio-energy industries.

Smulders offers a full range of services from engineering and fabrication to the complete turnkey solutions (EPCI) of substations and foundations for the offshore wind market and in addition platforms, modules, jackets and subsea structures for the oil & gas industry.

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2020

VIRTUAL ENERGY EXPORTS CONFERENCE

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Member news A&P announced Fit For Nuclear

A&P Falmouth has been granted Fit For Nuclear (F4N) status by the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC), as part of its diversification into the civil new build nuclear market.

The Fit For Nuclear (F4N) award is granted to companies which have benchmarked their performance against the standards demanded by the nuclear industry’s top tiers, and driven business improvements through a tailored action plan.

As part of the F4N process, A&P Falmouth worked with the supply chain team at Hinkley Point C, the country’s first new build nuclear project in 20 years, to understand how the business can best add value to tier one contractors working on the project.

F4N has been developed by the Nuclear AMRC with the support of its top tier partners, including nuclear new build developers and the Nuclear Decommissioning Authority.

These industry leaders are using F4N to identify potential companies for their own supply chains.

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For more information: www.ap-group.co.uk

Aggreko: New research highlights alternative fuel disconnect

Maintenance and supply are impeding greater uptake of alternative fuels despite industry appearing to fully embrace environmental targets according to a new report, Bridging the Gap to Net Zero: Solutions towards the net zero challenge, from Aggreko.

In a bid to help industry reach net zero targets effectively, Aggreko continues to question energy professionals about their use of onsite equipment. The latest insights come from 200 energy professionals across industry. Specifically, Bridging the Gap to Net Zero aims to gauge corporate appetite for change and uptake of alternative fuels.

Unsurprisingly, a resounding 96% of respondents said their company’s environmental impact was a ‘medium to high priority’.

However, while 82% of respondents confirmed their use of alternative fuels as a way of reducing corporate impact, 85% still identified diesel as their fuel of choice for powering onsite equipment, casting any notion of progress into doubt.

64% of the construction cost of Hinkley Point C will be spent with UK companies

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The report advises on the immediate changes that businesses can make in order to inch closer to net zero. Solutions explored include hydrotreated vegetable oil (HVO), gas-to-liquid (GTL), combined heat and power (CHP), battery and raising the efficiency of existing technologies.

Achieving net zero is far from simple and pragmatism will be central to success. This report does not attempt to define one path but instead discusses the different options businesses can use to instigate change.

Chris Rason, Managing Director, Aggreko

As Aggreko continues to invest in new greener technologies, the report also reveals early results of emissions testing of HVO and GTL in its Stage IIIA generator fleet. The analysis was carried out by an independent engineering and environmental consultancy in compliance with ISO 8178 D2. Both fuels were tested and compared to EN590 diesel.

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For more information: www.aggreko.com

Member news

Last month Blue Water announced the opening of another office in the region – in Guyana. Blue Water has thereby put extra efforts into gaining a solid position in this emerging market, which the company has already been servicing for a few years.

From the offices in Guyana and in Trinidad, Blue Water’s staff will focus on maintaining and increasing the current client base. This will be done in close collaboration with other Blue Water offices specialised in project transport.

Blue Water will also co-operate with Peterson Logistics in Guyana and Trinidad. Petersen has a strong presence in the Caribbean, supporting its customers with integrated logistics from offices in Trinidad, Guyana and Surinam, with a local staff of over 150.

© EDF

Blue Water’s global network of more than 60 offices works closely together to provide services to its customers, and the company has an extensive range of special in-house competences; engineers, experienced project freight forwarders, IT developers as well as quality, safety and environmental experts. These inhouse competences will increase according to the need and demands in the market.

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For more information: www.bws.net

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Two units of the world’s most powerful four-stroke engine – the MAN 20V45/60 – are being installed in a newly built power plant in Chandpur, Bangladesh

HTL Australasia: NATA accreditation © HTL Group

International transport and logistics company Blue Water Shipping has serviced the global oil and energy industries for decades. The focus is to provide solutions of high quality and efficiency – and to be present at the key locations of the industry.

The growing development of oil and gas in the Caribbean and the north-eastern region of South America has resulted in Blue Water opening an office in Trinidad & Tobago.

© MAN Energy Solutions

Blue Water enters Trinidad

HTL Australasia, controlled bolting specialists, is delighted to announce that it has received accreditation from the National Association of Testing Authorities (NATA).

The national accreditation body for Australia has approved HTL Group in Western Australia for the calibration of torque equipment.

Having the NATA accreditation confirms HTL Australasia’s competency in providing a highquality service. The scope covers two classifications of testing, ISO 6789-2 2017 and ASME B 107.300.

HTL Australasia offers a comprehensive range of controlled bolting, flange working and portable machine equipment. Dedicated to provide a customer-centric approach, the controlled bolting specialists offers the sale, hire, service and training for all onshore and offshore installation and maintenance projects across all industry sectors.

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For more information: www.htlgroup.com

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MAN Energy Solutions to install more than 400MW of power in Bangladesh MAN Energy Solutions is supplying generation technology for a newly built power plant in Chandpur, Bangladesh, and has successfully handed over another three power plants in the cities of Bogra and Chittagong.

MAN Energy Solutions is supplying its customer, Chandpur Power Generation with a combination of four 18V51/60TS and two 20V45/60 engines for the new plant in Chandpur, which will feed a total of 125MW into the national grid.

Chandpur Power Generation is a subsidiary of Doreen Power.

The world’s most powerful fourstroke engine – the MAN 20V45/60 – is being installed in Chandpur.

With an output of around 26MW per engine, not only is the 20V45/60 especially powerful, it also achieves outstanding efficiency values with a fuel utilisation of over 50%. The customer in Chandpur is also relying on another special feature: four 18V51/60TS engines are for the first time combined with twostage turbocharging – a premier for this engine type. Such units come with a low-pressure compressor and a high-pressure compressor, which work connected in series and therefore achieve improved power density and efficiency.

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Member news

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For more information: www.man-es.com

Expansion and acquisition at Nylacast

Nylacast has completed the acquisition of Viva Nylons as part of its expansion plans. Viva is a renowned manufacturer of cast nylon semi-finished products and delivers a wide stock range of plates, rods and tubes to distributors and machining centres across the globe.

The recent acquisition forms part of Nylacast’s wider growth strategy and commitment to offering value-adding engineered solutions to its customer base of leading manufacturers.

The acquisition was agreed at an undisclosed sum and will see Viva Nylons become a wholly owned subsidiary of Nylacast, preserving its brand for the foreseeable future.

Nylacast currently has three manufacturing plants in Leicester along with its world headquarters.

The engineering firm has additional plants in China, South Africa and the USA. Employing 530 members of staff, Nylacast services a worldwide market place with its custom engineered, low weight, low friction components used in safety-critical applications to maximise production and minimise downtime.

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For more information: www.nylacast.com

© Oliver Valves Ltd

MAN Energy Solutions has already gone one step further in Bogra and Chittagong. The three power plants constructed there have now been successfully handed over to the customer, Confidence Power. The power plants use fifteen 18V48/60 units in total. The two plants in Bogra will generate 113MW each to supply base-load electricity to the city, while the third power plant in Chittagong will feed 56MW into the grid of the port of Bangladesh’s second-largest city.

Quanta celebrates new move

Oliver Valves wins record breaking £10m order

Quanta, a leading engineering services company, specialising in the provision of engineering, procurement and construction services to the energy industry, was pleased to welcome the new MP for Blyth Valley, Mr Ian Levy, to open its new headquarters in Northumberland Business Park. The new facilities will provide additional workspace and support Quanta’s vision for business growth.

In February, the globally successful valve manufacturing company beat some stiff competition from many competitors to win an incredible order in excess of £10m for a major international EPC company based in the Middle East. The order was for an excess of 1,200 double block and bleed valves which are to be stationed in the Arabian Gulf.

This historic order will run for approximately one year, with deliveries being gradually sent to the Middle East, until completion in February 2021.

Colm Kane, Managing Director of the Oliver family of companies, was quick to credit the team at Oliver’s as one of the main reasons for its success. The motto at Oliver’s of ‘it can be done’, Colm says “runs true within every department in the organisation,” and an order that big shows that ‘it can be done’. With over 350 employees, 100 of whom have each given over 10 years’ service to the company and three of them reaching 35 years this year, shows how loyal and committed the Oliver team is to making their business a success.

This order is supporting the company’s growth strategy as it is heading for an impressive 40% increase in business from last year’s financial figures.

Oliver Valves is growing at a rapid rate and with their continued hard work and commitment will hopefully see many more orders like this one for the company.

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For more information: www.valves.co.uk

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Quanta is a leading provider of engineering, procurement and construction services to the energy industry. It works in partnership with clients to provide integrated end to end solutions, ensuring efficiency, quality and value. Mr Nick Oates, Quanta CEO, recently won a North East Times Impact Award for his achievements in improving stability and returning the business to profitability, following a management buyout in 2018.

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For more information: www.quanta-epc.co.uk © Sonardyne International Ltd

12

New EIC members Social media Member round news up

Sonardyne reveals latest subsea technologies

With a focus on compact yet highly capable unmanned and vessel instruments, Sonardyne has unveiled SPRINT-Nav Mini, the most compact guidance and control solution in the market, as well as ADCP functionality for its Syrinx Doppler velocity log (DVL) and a smaller, lighter version of its popular Gyro USBL transceiver.

SPRINT-Nav Mini provides guidance and control outputs – orientation, velocity, altitude and depth – in a single instrument. It provides precise, robust and fixed frequency outputs, independent of each individual sensor’s update rates.

Sonardyne is also introducing its second-generation Gyro USBL. It combines the vessel heading, pitch and roll data that’s critical to Ultra-Short BaseLine (USBL) system performance, with an acoustic transceiver – all in one housing.

Finally, Sonardyne has also increased the functionality of its Syrinx 600 kHz DVL. It now has optional acoustic current Doppler profiling (ADCP) capability, as well as dual DVL/ADCP operations, without compromising bottom track.

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 – EIC (Energy Industries Council) 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

Excited to announce for the first time in 77 years, we now offer full EIC membership to asset owners, operators, developers and utilities. Find out more: http://bit.ly/2XyOn8N

The EIC @TheEICEnergy

The Energy Industries Council (EIC) is delighted to announce Campbell Keir as its new president, taking the helm from Chris Haynes OBE: http://bit.ly/2yBHr02

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For more information: www.sonardyne.com

EIC (Energy Industries Council) We have information on over 2,000 projects, worth US$10bn, covering 54 African countries. For more information, please get in touch with anand.kumar@the-eic.com

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@TheEICEnergy

EIC (Energy Industries Council)

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14

May 2020

Forthcoming events and 1 May LIVE e-vents

Coffee Break with Amanda Duhon Webinar

1 May LIVE e-vents

Open Forum: O&M Webinar

4 May LIVE e-vents

Oman Market Update

Webinar

5 May LIVE e-vents

Opportunities in Nuclear

Webinar

5 May LIVE e-vents

Making full use of EIC Databases Webinar

6 May Business Presentation

The Upstream Sector in Mexico Webinar

6 May Management Course

EICDataStream/AssetMap training Online

11 May LIVE e-vents

The African Market Webinar

12 May Business Presentation

South America EICDataStream Online

14 May Business Presentation

Opportunities with SBM Offshore Webinar

Get in touch Share your news and views...

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

LIVE e-vents The EIC’s new webinars

14 May Business Presentation

North America EICDataStream Online

15 May LIVE e-vents

Using EICDataStream Webinar

19 May LIVE e-vents

Wind Opportunities in Asia Pacific Webinar

20 May LIVE e-vents

Making full use of EIC Databases Webinar

20 May Management Course

EICDataStream/AssetMap training Online

26 May LIVE e-vents

Focus on Decommissioning Webinar

27 May Business Presentation

Opportunities with Trident Energy Webinar

28 May Business Presentation

North America EICDataStream Online

28 May Business Presentation

South America EICDataStream Online

29 May Business Presentation

North America Open Day with Deugro Online

For more information and to book visit www.the-eic.com

Forthcoming events

9-10 September 2020 • Jakarta

CONNECT June 2020

Energy Indonesia 3 June Management Course

16 June LIVE e-vents

EICDataStream/AssetMap training Online

9 June LIVE e-vents

Webinar

16 June Management Course

Making full use of EIC Databases Webinar

9 June LIVE e-vents

EICDataStream/AssetMap training Online

24 June Business Presentation

Opportunities to Export

The Oil and Gas Sector with Equinor

Webinar

Rio de Janeiro

11 June Business Presentation

25 June LIVE e-vents

North America EICDataStream Online

Focus on Hydrogen

Making full use of EIC Databases Webinar

12 June LIVE e-vents

25 June Business Presentation

Launchpad to Success

North America EICDataStream

Webinar

Online

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Access $500bn of global opportunities MONDAY 28 SEPTEMBER – THURSDAY 1 OCTOBER

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2020

VIRTUAL ENERGY EXPORTS CONFERENCE

EIC (Energy Industries Council)

15

16

EIC guest editorial Subsea power cables

Critical infrastructure and mitigating risks during installation

Lying across the global seabed is a network of subsea power cables running thousands of kilometres, transporting power to industry and millions of households. Most people are probably not aware of the critical role subsea cables play in our lives, being ‘out of sight, out of mind’.

They are normally buried under the seabed and are not as visible in the same way as a power station or the huge offshore wind turbines you can see dancing offshore, such as those in the Moray Firth. According to a 2019 report published by Wind Europe, offshore wind renewable energy accounted for 15% of power generation across Europe with an increased capacity of 15.2GW. This is a significant increase of clean energy generation over the last 10 years which would not be possible without subsea power cables.

The construction of an offshore wind farm is a complex and expensive process. It requires high value assets such as the wind turbines, foundations, sub-stations and subsea cables to be transported offshore using large vessels and barges. These assets can be owned and insured by multiple parties, whose understandable concern is to manage and mitigate the risks involved in the construction.

Incidents can be very costly, and a faulty power cable presents significant problems to the owners, contractors and insurers, due to the costs and time to repair or replace the cable and the consequential delays in the project.

The mechanical, structural and high voltage integrity of a cable design is confirmed by a type-test process.

This is a range of physical tests performed prior to the full manufacturing of the cable. Type-testing is used to confirm the limits for the cable, with respect to its handling, installation and the environment that it can withstand.

Cables can experience a wide spectrum of motions and accelerations on a vessel during installation and are handled several times prior to that. It is essential that the handling, transport and installation of the cable does not cause any exceedance of the permissible limits identified in the typetest or any other limits specified by the manufacturer.

For owners and insurers, this is where the concern lies; ensuring that all handling and installation operations are done in a manner that respects these limits.

Subsea power cables are installed using a specialised Cable Lay Vessel (CLV). It is critical that the compatibility of the CLV and the cable is confirmed before the cable is loaded onto the vessel and installed. Parameters such as carousel bend radii, instances of multi-plane bending and other vessel specific characteristics must be checked with respect to the permissible limits for the cable, as defined by the type-tests.

Subsea cable being pulled-in and laid onshore

During the cable installation process itself, the CLV is operating offshore in a hostile and dynamic environment.

There are many variables, but among the most significant of these is the weather. The motion of the vessel at sea, during the voyage to site and critically, at the installation stage directly affect the forces that act on the cable. With a cable, suspended from the vessel during the laying process, installation is a critical operation and one that requires detailed analysis and risk mitigation. Owners and insurers therefore seek to protect their interests (that is manage their risk) and to ensure that the cable is installed using industry best practices.

One of the main methods to help reduce incidents and damage to cables, is to identify best practice for the specific project, this is where the engagement of a Marine Warranty Surveyor (MWS) for the planning and execution of installation operations will yield the greatest benefit.

The question is often asked ‘who or what is an MWS’?

The MWS is an independent body appointed to satisfy the requirements of the Marine Warranty Clause in the Construction All Risks (CAR) insurance policy. Their scope typically includes independent review and approval of all procedures and related engineering, confirmation of the suitability of vessels and equipment, witnessing and approval of site preparations and critical operations, onshore and offshore.

be profiled in thisand section please contact Lucy Chakaodza, EIC Editor, Media and Communications Manager...

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

EIC guest editorial

An MWS should be involved from the moment the insured asset crosses the quay until it is safely secured on the seabed or returned to shore. While the MWS, as an independent party, cannot design, they can make recommendations as to best practice. By monitoring the application of best practice and establishment of the correct principles, the MWS can help mitigate the risks in the construction phase of the project. Since the cost of any incident can be very high, many companies consider the MWS as a vital part of their risk management strategy.

The MWS should be involved as early as possible, during the engineering and planning phases, so that they can provide input as soon as possible before things progress too far and it becomes expensive to make changes. The MWS reviews the engineering documents and procedures for an operation, and once satisfied, approves them.

Prior to the start of the operation, the MWS will confirm that preparations have been conducted according to the approved procedures and then issue a Certificate of Approval (COA). This confirms to the insurers that the insured has complied with the terms of the warranty clause.

However, best practice will also evolve as the industry expands and learns from each project. Based on our experience, the testing of a cable should be developed to better understand its ability to withstand the necessary handling, transport and installation cycles.

For example, it would be valuable to have clear data on the maximum sea-states that a particular cable can safely withstand and under what conditions the cable might be stressed beyond its acceptable limits. In other words, is there a risk that the design life of the cable could be compromised during handling and installation?

Such tests would involve subjecting a cable to multiple spooling and un-spooling operations, simulation of dynamic environments, and passage through multiple planes during the laying process itself.

Currently, it appears that subsea cables are satisfactorily designed for their operating environment, i.e. buried in the seabed where they shouldn’t move. However, the extent to which they have been designed for the multiple, temporary handling phases prior to that, is less apparent. With insurers concerned about through-life cable failure claims, which have high costs and cause significant impact to the power transmission grids, the industry has an excellent opportunity to enhance the understanding of this.

Analyses of the conditions that cables experience during handling and installation will help to better inform the cable manufacturing industry, installation contractors and their insurers and will improve the risk management for cable installations, reducing claims and improving premiums.

Waves Group is actively involved in subsea cable laying for large offshore wind farms and power supply interconnectors. It has worked extensively on major offshore wind farm projects in Europe and further afield such as Beatrice, Hornsea One, Formosa, Triton Knoll, Seamade among many others. As well as regularly providing MWS services, Waves Group also has an engineering team dealing with the design for transport and installation of large, high value assets, including subsea cables.

Waves Group also sees the results of cable damages, whether incurred during the construction phase or due to other events during its operational life; investigating the cause of the damage and managing the response to incidents, including the repair, on behalf of its clients.

This includes inspection and assessment of subsea cables through the use of high-resolution 3-D surveys, to independently and rapidly identify damage and gather related evidence.

To learn more about Waves Group and its services please contact mail@waves-group.co.uk

Subsea cable being unspooled from a chute

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EIC (Energy Industries Council)

17

18

Overseas events EIC Exhibitor Support Kit

Make the most of the extra time to enhance your ROI for postponed and upcoming exhibitions.

The global outbreak of COVID-19 has caused significant upheaval and uncertainty, with all the major energy exhibitions planned for the next four months being postponed until the second half of 2020.

The EIC’s overseas events team aims to help our exhibitors make the most of this time Camilla by launching a new Exhibitor Support Kit. The packs are available on the EIC exhibitions Tew website and will be updated regularly. Support will include exhibitor training, building market knowledge, targeting potential customers and importantly, connecting with fellow exhibitors and EIC members to discuss and share views on current topics.

We hope this support and additional preparation will provide a stronger return on investment.

What’s in store for the energy sector in 2020?

In 2019 the EIC and Investec carried out a member survey, and we are pleased to present the findings.

The results point towards an interesting year in the energy sector.

In what could be a breakthrough year for renewables and developments in new geographies, businesses will be facing a number of challenges and opportunities.

To view the survey findings, please click here

Get in touch For more information contact...

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

19 19

UK and Europe news Regional update It’s been a strange couple of months with the COVID-19 pandemic having a major impact on how we live and work. Our thoughts and best wishes are with everyone coping during this difficult time.

Regional news

Jo Cam

pbell

As with all challenging situations positives can appear and we have seen a number of wonderful opportunities emerge for us to assist our members and partners.

Obviously keen to continue providing our members with the very latest energy sector news and updates we have transitioned to a virtual platform allowing EIC events to come direct to individual homes. EIC LIVE e-vents, a series of information webinars, has been launched!

Our first EIC LIVE e-vent was held on 2 April and was titled Focussing on Oil and Gas during COVID-19. An amazing 124 attendees logged in to hear the EIC’s market intelligence team give an overview of the current state of play in the global oil and gas market.

On 22 April we hosted a Norway market update EIC LIVE e-vent, looking at the latest sector news directly from key players working in this market. Again, we received an outstanding response of over 100 attendees on the webinar.

EIC teams globally have planned EIC LIVE e-vents with the full listing available on the EIC website. A few upcoming e-vents are listed below.

We are here to help so do let us know if there are any particular topics you would like to be updated on.

Stay home, stay safe, stay positive.

Jo Campbell, Regional Director (UK & Europe) jo.campbell@the-eic.com

EIC LIVE e-vents

LIVE e-vents

1 May: Open Forum - Operations & Maintenance 5 May: Opportunities in the Nuclear Industry 19 May: Focus on Global Offshore Wind 26 May: Focus on Decommissioning 9 June: Opportunities to Export

Finding hope in the UK amidst the worldwide pandemic

In March, it was the UK’s turn to experience the reverberation of the coronavirus pandemic. The UK’s energy landscape faced a tumultuous few weeks due to the unexpected spread and disruption of the calamity. At first, the renewables sector appeared to remain largely unaffected. Yet with projects – such as the Tees Renewable Energy Biomass Plant – starting to announce standstills, the impact on the supply chain and developers in the long run is now unclear.

However, amidst the turmoil, not only are discussions arising regarding the possible enhancement of energy transition activities in the long-term, but a number of governmental changes were announced that still bring some hope to the sector. The UK’s Budget 2020 confirmed funding of £800m for two or more new CCS clusters by 2030, more than doubling research and development investment in its energy innovation programme to £1bn and plans to support biomethane production through a green gas levy.

Solar and onshore wind were brought back into the CfD subsidy scheme after four years, while also proposing to allow energy from waste projects operating in CHP mode to bid for subsidies under the scheme. While these updates brought the ambition of reaching the targeted net-zero emissions by 2050 when announced, remembering such news post coronavirus will also provide optimism for the region.

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

16 June: Focus on Hydrogen Sign up for the EICOnline newsletter

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@TheEICEnergy

EIC (Energy Industries Council)

20

Middle East news Regional update

The current COVID-19 pandemic and low oil price continues to have a significant impact on both travel and trade across the region where several countries Ryan M cPhers on remain in lockdown with no travel permitted for the foreseeable future. These are uncharted waters with every country doing what they can to stem the tide and ensure the safety of their residents which we fully support.

We are working round the clock to provide the highest levels of member service and database performance during these unprecedented times.

I would like to take this time to remind our members of the excellent business intelligence tools you receive as part of our membership. You can sign up to receive unlimited employee logins to EICDataStream, at no extra cost, and get free remote database training too. The recent launch of EICSupplyMap; a unique database of UK supply chain companies across all energy sectors, is also a welcome addition to the family which I would encourage you to utilise.

In addition you have access to all EIC staff who remain fully operational and ready to answer any questions you have, including giving you direct access to our 20 energy analysts, who add 500 new updates every week to our CAPEX, OPEX and supply chain databases.

As you may be aware EIC has now moved to an online platform for our events, re-imagining our EIC LIVE e-vents to keep you abreast of the latest opportunities and developments. https://lnkd.in/g-PAcq2 Our first webinar in the region ‘Adapting and learning in the face of the current COVID-19/low oil price situation’ was a resounding success not least in part to the excellent upstream and operator insights provided by two of our analysts from the UK; Diveena Danabalan and Michael Comfort. We also heard from EIC member Xergy about how they are utilising their Proteus work management system as an enabler to a new way of working in the current climate, a real story of hard work meeting immediate opportunity.

More webinars will follow with several guest speakers from around the GCC and beyond. We are also eager to hear from EIC members who feel that they have a compelling story to tell during this time. Ultimately, we remain focused on what we can do to help you while providing some guidance and a sense of optimism.

We have also recently launched our Africa membership reflecting the growing activity in this region.

Get in touch Share your news and views...

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

We hope to welcome some new members to the EIC family allowing us to learn from each other and position ourselves for an upturn in the market. Further information can be found at www.the-eic.com/Membership/Africa On a final note from all of us here at EIC we hope that you and your respective families continue to stay safe during this challenging time and please be assured that we are all on hand to help wherever we can.

Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com

Regional news

Nawah completes fuel assembly loading at Barakah Nawah Energy Company (Nawah), the operator of UAE’s first nuclear power plant, the Barakah nuclear power plant, has announced the successful completion of fuel assembly loading into unit 1. The power plant is a 5.6GW nuclear power plant with pressurised water reactor technology based on four APR-1400 reactors. The power plant is being managed by Nawah which consists of Emirates Nuclear Energy Corp (ENEC) with 82% equity and Korea Electric Power Corporation (KEPCO) which owns the remaining 18% share of the project.

Saudi Aramco to slash CAPEX in 2020

As of mid-March 2020, Saudi Aramco is planning to slash spending in 2020 in the first sign that plunging demand and the oil price war the kingdom unleashed are hitting home. Capital expenditure is expected to be between US$25bn and US$30bn this year and spending plans for 2021 and beyond are being reviewed.

Forthcoming events

Please go to page 14 to see upcoming events in your region

21 21

Asia Pacific news Regional update

The pandemic COVID-19 has affected the whole region, especially China, Japan, Korea, Malaysia, Singapore, Indonesia and Azman many others. A number of Nasir countries have imposed restrictions on movement of their citizens or partial lockdowns, resulting in the closures of offices and businesses. EIC Asia Pacific is also affected and has had to close its offices since 18 March 2020. At the time of writing, the partial lockdown is due to be lifted on 16 April 2020, however unofficial reports suggest that the lockdown may be continued for several more weeks.

The pandemic has also forced everyone to change the way we do business at least temporarily as it is expected things will not get back to normal immediately even after the lockdown has been lifted.

Due to the ongoing COVID-19 outbreak globally, we took the decision to postpone EIC Connect Indonesia to a new date in September 2020. This means we are going to have to move the scheduled EIC Connect Malaysia to November 2020 and EIC Connect Vietnam to March 2021. Obviously with so much uncertainty at the moment, we will keep everyone updated.

In lieu of the normal events that we organise for members on a monthly basis, we are currently planning a series of webinars via a video-conferencing platform. Please look out for further announcements via emails or visit the EIC website. EIC is launching a new format for events called EIC LIVE e-vents where a series of webinars will be organised by EIC offices in all regions.

Upcoming webinars that are being planned by EIC Asia Pacific include a business presentation by Mott MacDonald on hydrogen (April 2020), an engagement session with international EPCs like Worley, Bechtel, Petrofac and McDermott which is scheduled for May followed by another business presentation by several regional marine players such as Keppel of Singapore, CUEL of Thailand, PTSC of Vietnam and Boustead of Malaysia (June 2020). We will also be introducing a fortnightly webinar session called Tea Time Talk @4, where two of our analysts will be sharing the latest updates of energy projects within the Asia Pacific region. In addition we are planning to carry out more in-depth training for members on EICDataStream and EIC AssetMap, targeting members who have not been making full use of the two databases.

Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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

9-10 September 2020 • Jakarta

CONNECT Energy Indonesia Regional news

China to slash 50% subsidies for solar in 2020

China will halve its 2020 subsidy budget for new solar power plants and will end handouts completely for new offshore wind farms in efforts to ease the strain on the central government’s budget. The National Energy Administration (NEA) stated that it had cut this 2020’s national subsidies for new solar power projects by 50% to US$215.8m. It is understood that China is also scrapping subsidies for new offshore wind farms this year and plans to end subsidies for new onshore projects in 2021. Realising the damage done with the COVID-19 outbreak, NEA has extended the application period for the auctions until H2 2020.

Three Gorges to start on Asia’s biggest offshore wind projects

State-owned Chinese power giant China Three Gorges has ordered the commencement of work on 25 renewable energy projects, spanning onshore and offshore wind and solar across 14 provinces, in an US$8.3bn bid to jump-start a supply chain stalled

by COVID-19. The projects include two offshore wind super projects located at Yangjiang and Rudong with generation capacity of 1,400MW and 800MW respectively.

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

@TheEICEnergy

EIC (Energy Industries Council)

22

North and Central America news Regional update

We recognise this is an unprecedented time across the energy sector. Now more than ever, the benefits of EIC membership are crucial as we move to a work-from-home Amand a Duho n environment while maintaining a business as usual commitment. The EIC Houston team is committed to keeping our members informed of all the latest project developments and opportunities to network.

We are currently working to deliver a series of EIC LIVE e-vents to ensure our members get the maximum benefits from EIC market intelligence from EICDataStream and EICAssetMap, the launch of the Mexico country report with a series of events on the market following, a deep dive into LNG and US offshore wind, energy transition, and a weekly online coffee, tea or happy hour with the EIC Houston team.

Furthermore, as major conferences and exhibitions have been cancelled or postponed, we want to ensure our members are connected with key project decision makers to keep them one step ahead of the competition and thriving during these difficult times. To do so, we are now working to co-ordinate virtual one-to-one appointments for the UK pavilion exhibitors who would have been in Houston during May, attending the Offshore Technology Conference (OTC).

EIC Connect Energy USA 2020 planning for September is underway and we are delighted to have Unger Steel, William Hare, Ari Armaturen, iPS Powerful People and Pentagon as sponsors of our fourth edition of this conference. In 2020, our conventional oil and gas conference theme will incorporate the transition to lower carbon energy helping you to diversify your business across the energy sectors. Please contact us if you are interested in participating in this event as a sponsor, speaker or delegate. For conference information, please visit www.the-eic.com/Events/EICConnect/EnergyUSA Houston is the energy capital of the world and in 2020 we are continuing to offer virtual office EICLaunchPad services which will give your company a regional address and dedicated phone line service to grow your customer base in the US. To find our more, you can reach us at houston@the-eic.com Amanda Duhon, Regional Director, 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

Forthcoming event EIC Connect Energy USA CONNECT

Tuesday 29 September 2020 Energy USA

Norris Conference Centers, Houston The EIC is delighted to announce that EIC Connect USA will be coming back to Houston for its fourth consecutive year. We will be expanding this year’s conference programme to deliver even more opportunities for the UK supply chain with major global energy contractors and operators. Bookings will open soon.

Please visit www.the-eic.com/Events/EICConnect/EnergyUSA

Regional news

Shell exits Lake Charles LNG project

Due to current market conditions, Shell will no longer proceed with an equity interest in the proposed US$12.3bn Lake Charles LNG export project in Louisiana. Shell’s partner in the project, Energy Transfer, will acquire Shell’s 50% stake and take over as the project’s sole developer. Shell will continue to support Energy Transfer with the current EPC bidding process then execute a phased handover of the project’s remaining activities. Final bids for the project’s EPC contract are due in Q2 2020.

Trump’s US$2tn stimulus package omits renewables

On 30 March President Trump signed into law a US$2tn coronavirus stimulus package amid the current economic crisis. Despite a push from Democrats and clean energy leaders, however, the bill excluded solar and wind projects from receiving any direct pay provisions or tax credit extensions. Industry leaders remain positive the bill could still provide much needed short-term support for individuals and businesses via healthcare and unemployment aid, as well as small business loans.

Forthcoming events

Please go to page 14 to see upcoming events in your region

23 23

South America news Regional update

We hope you and your families are well amid the COVID-19 outbreak. The EIC South America team remains committed to maintaining the same level of quality during this time.

Clariss e Roch a We continue to deliver business intelligence, online events and support to EIC members. At the time of writing, the team is working from home and all office lines are being forwarded to the respective EIC staff.

We are putting together a series of webinars such as a South America market update. Furthermore, EIC South America uploaded on our EIC YouTube channel the complete video of our business presentation with PetroRio, which was held on 11 February. Don’t miss the opportunity to hear once again from the largest independent oil and gas company in Brazil about opportunities for suppliers and their perspectives for the future.

Regional news

Brazilian bidding rounds suspended

Brazil’s National Petroleum Agency (ANP) has confirmed that two key bidding rounds offering offshore acreage will not take place in 2020 as a result of the COVID-19 outbreak. The 17th bidding round for E&P concessions was expected to offer 128 blocks, of which 74 are located in the Pelotas Basin – a frontier exploration area. The 7th bidding round for production sharing agreements – a framework designed for pre-salt blocks – would put on offer one block in the Campos Basin and two in the Santos Basin. A special round for surplus oil volumes present in the Sépia and Atapu oil fields is expected to take place in June 2021.

Understanding Procurement in Petrobras in the EIC Rio de Janeiro office

In March we held the course Understanding Procurement in Petrobras which provided clear and comprehensive information to help suppliers do business with the major Brazilian player in the oil and gas sector. We had a full room in the Rio office who listened to specialists about topics such as how to make the most out of Petronect navigation (the Petrobras procurement portal); the changes to the Petrobras’ procurement process; the CRC (Certificate of Registration) and its relevance for bid invitations.

If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

Petrobras reduces CAPEX for 2020 The Brazilian oil company has adjusted its CAPEX forecast for 2020 following impacts of the COVID-19 outbreak and the global downturn in oil prices. Petrobras is expected to invest US$8.5bn this year instead of US$12bn, while reducing operational expenses by US$2bn. The company has also announced a 200,000b/d cut in oil output as well as the temporary suspension of operations at production platforms located in the shallow waters of the Ceará, Rio de Janeiro, Rio Grande do Norte and Sergipe states.

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

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@TheEICEnergy

EIC (Energy Industries Council)

BO O NO KI W NG

EIC NATIONAL

DINNER 2020

22 OCTOBER

New venue Join us at the iconic De Vere Grand Connaught Rooms for a glamorous night of networking, entertainment, awards and great food in a truly palatial setting.

Just five minutes from Covent Garden and Holborn tube stations this venue offers excellent transport links and accommodation options for you and your guests.

THE UK’S PREMIER ENERGY INDUSTRY EVENT Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.

Your guest speaker The no-nonsense, legendary comedian that is Jimmy Carr is set to return to the EIC National Awards Dinner after first appearing on our stage in 2017.

He’s back to deliver an afterdinner speech that’s guaranteed to entertain and is not for the faint-hearted.

Take advantage of this unbeatable early bird offer to host and entertain your own VIP guests at an unforgettable evening.

Cost Table of ten: £1,990+VAT Individual place: £199+VAT

Awards ceremony

Corporate hospitality is a great way to help improve relationships within your network. Contact Jamie Lowes, EIC Sales Executive, to find out how to exceed your client’s expectations and differentiate yourself from the competition. +44 (0)7581 152 092 jamie.lowes@the-eic.com

The EIC awards ceremony will recognise companies which offer a product or service with a positive and significant effect on the UK energy supply chain. Details of award categories and how to enter can be found on the website here: www.the-eic.com/Events/ EICNationalAwardsDinner/Awards

BOOK TODAY

T: +44 (0)1429 874 450 E: nationalevents@the-eic.com www.the-eic.com/nationaldinner

© EDF Energy 2017

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www.the-eic.com/Membership

Contact us ABERDEEN LONDON HOUSTON

DUBAI KUALA LUMPUR RIO DE JANEIRO

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

EIC Scotland

72 Carden Place Aberdeen AB10 1UL UK 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 USA 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

EIC (Energy Industries Council)