168 1 July 2024 Success Stories
EIC Survive & Thrive 2024
EIC Survive & Thrive 2024
109 Success Stories July 2024
Story type #diversification (main category) #energy transition, #technology
Siemens Energy
Benefits
Repurposing a proven onshore gas turbine for the FPSO market
▸ Demand expected to grow for the SGT-750.
Key findings Daniel Tomicic Head of Project Management, Oil & Gas How is Siemens Energy thriving? After a decade of successfully serving onshore applications in the energy sector, Siemens Energy’s SGT-750 gas turbine is now being deployed in the offshore world. A notable project to fit an Australia-bound FPSO with the turbine has given the company the perfect opportunity to evolve the product, an opportunity the company has grabbed with both hands. The challenge - Siemens Energy is on a mission to support the decarbonisation of power generation. It is doing so by enabling the integration of renewable energy into grids through the use of reliable, efficient and low-emission turbines which deliver the baseload and/or supplement the fluctuating supplies from renewable sources. These include the SGT-750 breed of gas turbine. A lightweight and energy efficient model, the SGT-750 has a track record of successful performance after years in operation and verified results in various applications, the most common being for use in power generation and compressor applications such as pipelines and LNG. Recently, Siemens Energy saw an opportunity to enter the FPSO market with a dual fuel SGT750. A first for the sector, the pressure was on for the company to get it right.
SGT-750s are currently being installed as a combined cycle plant with steam generation and heat recovery. The completed FPSO will be deployed in the Asia Pacific region. For Siemens Energy, it has been a challenging endeavour from the outset. Despite not having a finalised design at the bidding stage, Siemens Energy’s bid management and sales teams worked diligently with the client teams to successfully identify and mitigate all risks, ultimately securing the contract. Initially, there was anxiety and uncertainty surrounding the project’s risk elements – however, with all five units now built, tested, delivered and with proved performance above nominal power to customer satisfaction, these concerns have well and truly subsided. While the project faced challenges such as parts delays and geopolitical events leading to force majeure claims, it is expected to be a win for Siemens Energy. Internal areas for improvement were identified through a ‘lessons learned’ workshop, including finalising clarifications during the sales phase, streamlining customer documentation, and guiding the customer to focus on interface-related comments.
The solution - Siemens Energy began to target the FPSO market in 2020. The sector is competitive, but the SGT-750 carried a number of advantages due to its excellent record onshore in terms of performance, low failure rate and strong heat rate, as well as its ability to fit with a heat recovery unit. The unit is also very compact, making it suitable for mounting on a floating structure with limited space.
Most notably, the project has resulted in an industrial gas turbine capable of dual-fuel operation throughout the entire load range, a capability previously limited to aero-derivative products. With the increasing trend towards combined cycle solutions in FPSO, the Project serves as an important reference for Siemens Energy’s competitiveness in this segment. The collaborative efforts have fostered a positive relationship with the customer, who is already providing favourable feedback about the company to the market.
From 2021 onwards, the key priority has been to get the SGT-750 fit for purpose and onto FPSOs. Once in play, Siemens Energy will be able to start building up a track record in the offshore industry.
As more success stories such as this begin to materialise, Siemens Energy can expect to see demand growing for the SGT-750 in the FPSO sector. For now, it is very much a case of watch this space.
The most significant of these initial forays is taking place in Singapore in the form of a €190-195m contract to install five units onto an FPSO. Kicking off at the end of 2021, the
For industry ▸ Work as a team and a partner with your customer. A good relationship with a client is the key factor to success. ▸ Be transparent when working, internally and externally. For government ▸ Look at companies’ portfolio and stringent work on lowering emissions and support them.
Siemens Energy at a glance: Key products and services: energy technologies solutions and services. Main industries served: ▸ Oil and gas ▸ Renewables ▸ Independent power generation ▸ Pulp and paper ▸ Marine ▸ Others Headquarters: Munich, Germany Year established: 2020 Number of employees: 95,671 Revenue: £26.5bn Revenue from exports: 100%