Sunday, June 30, 2013

INDIA: Sembcorp’s jointly-owned power plant secures second coal supply deal

(EnergyAsia, June 28 2013, Friday) — Singapore's Sembcorp Industries said its joint venture firm, Thermal Powertech Corporation India (TPCIL), has secured a 20-year deal for coal supply to its 1,320MW power plant now under construction in Andhra Pradesh state.

Mahanadi Coal Fields, a subsidiary of state-owned Coal India, has agreed to provide an annual supply of 2.1 million tonnes of domestic coal from the second half of 2014 when the power plant comes onstream.

In February 2012, TPCIL secured its first coal supply contract with Indonesia's PT Bayan Resources for one million tonnes per year for 10 years.

"Together, both contracts will supply approximately 60% of the plant's total coal requirement. TPCIL is currently working with the relevant authorities in India to secure another fuel supply agreement for the plant by the later part of this year," said Sembcorp, which owns 49% of TPCIL through subsidiary Sembcorp Utilities.

Gayatri Energy Ventures, a wholly owned subsidiary of India's Gayatri Projects, owns the majority 51% of TPCIL, which is building the plant in Krishnapatnam in Andhra Pradesh's SPSR Nellore District.

Sembcorp said the latest coal supply agreement will enable TPCIL to supply power to thousands of consumers in Andhra Pradesh and play an essential role in helping to reduce the severe shortage of power supply in the state and southern India.

The plant will also apply supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.

According to TPCIL, the project will be implemented in two phases, with the first unit of 660 megawatts to start up by mid-2014, and the second 660MW unit about six months later.

 


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Monday, June 24, 2013

CHINA: Sinopec in talks with Petrobras to build 300,000 b/d refinery in Brazil

 

(EnergyAsia, June 21 2013, Friday) — Brazil's state energy firm Petrobras said it has signed a letter of intent with China Petroleum and Chemical Corp or Sinopec build a 300,000-b/d oil refinery in South America's largest country.

Petrobras, which is looking to build four similar-sized refineries to meet rising domestic fuel demand, said the two companies will study the feasibility of establishing a joint venture to build and operate the proposed US$20 billion Premium Refinery 1 in the northeastern state of Maranhao.

Petrobras, which is targeting to raise Brazil's 1.9-million b/d refining capacity to three million b/d by 2020, has also signed an agreement with South Korea's GS Energy to study the feasibility of building a 300,000 b/d in another part of the country.




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MARKETS: Oil tanker outlook still hurt by overcapacity, says Drewry Maritime Research

(EnergyAsia, June 21 2013, Friday) — Despite a projected 5% p.a. rise in demand through 2018, the oil tanker market faces a struggle to recover as it "is still blighted by surplus capacity", according to the latest findings by UK-based consultant Drewry Maritime Research.

"Prompt excessive ordering" could overwhelm the projected healthy 5% growth rate that will take tanker demand to 420 million dwt by 2018, said Drewry's latest Tanker Forecaster report.

Tanker owners might catch a break from 2014 if the existing phase of overcapacity eases, with improved demand and some slowdown in supply growth. But this is not assured as investors might be tempted to make new orders given the current attractive prices for new builds.

"With seasonally weak demand in the second quarter, the short-term view for freight rates does not look positive. Global oil demand declined by 1% in the first quarter of the year to 89.9 million b/d, although some recovery in demand is likely in the second half of the year based on seasonal demand, which will push overall tonnage demand higher by 2% in 2013," said Drewry.

A continuing supply of fresh tonnage through the year could put a lid on prices.

With 46 million dwt already added since 2010 and a further 17.1 million dwt (4%) due this year, utilisation will be poor and freight rates will not show any noticeable signs of recovery.

Longer term, the sector could be helped by an order slowdown and perhaps a gradual recovery of the world economy, with utilisation due to improve from 2014 along with a shift in trade patterns to support long voyage rates.

Drewry expects crude oil shipping from the main producing countries in Latin America, Africa and the Middle East to refineries in Asia to increase gradually, but this will be somewhat offset by weak shipping demand to the US and Europe. European refineries are experiencing shrinking margins while those in the US face rising domestic production and little expansion.




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Wednesday, June 19, 2013

LNG exports will cause “significant” natural gas price volatility at Henry Hub, consultant predicts

(EnergyAsia, June 20 2013, Thursday) — Natural gas prices at Henry Hub will experience "significant" price volatility when the US starts exporting liquefied natural gas, said New York City-based consultant PIRA Energy Group.

In a study, entitled "Liquefied Henry Hub: The Repercussions of North American LNG Exports at Home and Abroad," PIRA predicts the volatility will grow as more export capacity is approved and built.

While much of the market's attention is now on how a Henry Hub link might lead to lower gas prices abroad, PIRA said "an equal, if not greater, concern" should be placed on how global markets will affect US domestic gas pricing.

With US LNG exports forecast to crest at around nine billion cubic feet/day (bcf/d) or 91 billion cubic metres/year (bcm/y) by 2025, including eight bcf/d (81 bcm/y) from the Gulf, the call on domestic gas production will account for five percent to 15% of the total.

"Depending on the degree to which this new form of demand is indifferent to North American market developments, the Henry Hub price ramifications will be substantial, at least in the short-term," said study author Mickey Kwong.

The PIRA study addresses the multitude of gas price drivers around the world that will influence Henry Hub pricing when US begins exporting LNG later this decade. The study examines issues ranging from Russian gas production and seasonal gas use in a storage-short Europe to Japanese nuclear policy and bearable gas prices in Asia that will have a direct impact on Henry Hub prices on a daily basis much the way issues in the Mideast or West Africa influence crude oil prices.

Price volatility for Henry Hub will also be influenced by LNG-related changes in the supply/demand balances within North America. The timing of new supply, combined with domestic gas demand growth from low Henry Hub prices and the stability of LNG production, add significant layers of complexity to the movement of Henry Hub prices.

Extended periods of time will emerge when North American LNG exports are "in the money" and "out of the money" in the global gas market context. Exactly how lifters of North American LNG react to these external market forces will work their way back into Henry Hub pricing.

"The changing dynamic in the market is that the fairly insular world of North American gas markets and Henry Hub pricing will be immediately exposed to supply, demand, inventory, and pricing issues in other parts of the world," said Ira Joseph, executive director of PIRA's Global Gas Group.

"These factors were previously insignificant or ignored entirely by North American gas trade."

 


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Sunday, June 16, 2013

Alstom GT26 gas turbine effective with shale gas

Alstom’s GT26 gas turbine can already handle shale gas and other variable fuels as internal calculations show that shale gas and LNG will be within the company’s hydrogen gas experience range.  “We get prepared for extreme cases of shale gas with lots of C2+ that we may 16-18 percent and go up to even 20 percent C2+,” Dr. Klaus Knapp, group head, combustor operations and emissions with Alstom told  this weeks’  VGB Congress in Friedrichshafen, Germany. 

In Algeria, Alstom could prove the C2+ variation tolerance of its turbine by running the combustion chambers with 15 percent C2+.

A hydrogen content of up to 15 percent volume can be handled by Alstom’s GT26 turbines, according to Knapp. “Even if we add hydrogen to gas not much happens to the Wobbe Index, even at 100 percent hydrogen,“ he said, explaining “Hydrogen and natural gas show similar Wobbe Index values and so jet penetration, mixing and pressure drop are similar.”  

“We can handle the situation as far as NOx is concerned,” Knapp said pointing to experience gained by the company to handle Wobbe Index fluctuation of  plus or minus 15 percent .

“The gas composition must be known in order optimise the system. If we have NOX emissions of 15ppm, the composition must be known. For hydrogen it will have to be developed. Be it LNG or be it hydrogen addition, I would say we are prepared for this.”

Handling variable fuel with GT26

Alstom has stepped up R&D efforts to prepare handling future increases in variable LNG with its GT26 gas turbine combustion systems. It is already meeting customer demands by supplying turbines capable of switching to variable fuel types and compositions similar to shale gas with its GT26 gas turbine which has a capacity of about 300 MW.

Knapp outlined that particularly in conjunction with shale gas the variants of gas quality are bound to increase and customer demands to switch between gas types have to be considered.We see today that the hydrogen discussion is coming up and we can expect that hydrogen will be added to gas locally that the user or in the pipeline grid,” he said.

Hydrogen in natural gas increases the reactivity of the flame and tends to ‘flash back’ or create a flame flare within the combustion chamber.

Such flash backs can cause emissions increases, he said. “If flame flashes back into the burner, it does not necessarily cause damage, but leads to a NOX and emissions increase. If I am careful I can adjust the flame, but then I have the risk of losing the flame,” he said.

Clients for GT26 in Algeria, Spain and Thailand

Alstom’s fleet of gas turbines and equipment is already used with a wide range of gas compositions. It has supplied GT26 gas turbine to clients in Thailand, Algeria, and Spain with variable gas compositions.

The fleet includes machines that use diluted gas with a high nitrogen, engines that operate blast furnace gas, and also syngas from heavy oil and gasification.

 


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Thursday, June 13, 2013

MARKETS: BP says coal was fastest growing fuel market last year

(EnergyAsia, June 14 2013, Friday) — Coal made a big comeback last year as its share in the global energy mix reached 29.9%, its highest level since 1970, said BP.

Reflecting the world's declining concern with global warming, its consumption of coal, the leading source of greenhouse gases, grew by 2.5%, ahead of oil's 0.9% increase and natural gas's 2.2%.

What saved the environment from a bigger dose of greenhouse gases was the slowdown in the world economy which ensured that coal consumption growth fell well below the recent 10-year average of 4.4%, said BP in its latest annual Statistical Review of World Energy.

"Consumption outside the OECD rose by a below-average 5.4%. Chinese consumption growth was a below-average 6.1%, but China still accounted for all of the net growth in global coal consumption, and China accounted for more than half of global coal consumption for the first time," said BP.

"OECD consumption declined by 4.2% with losses in the US (-11.9%) offsetting increases in Europe and Japan. EU consumption grew for a third consecutive year."

To keep up with demand, global coal production rose by 2% to 86.2 million tonnes of oil equivalent, with growth in China (3.5%) and Indonesia (9%) offsetting a steep 7.5% decline in the US. The Asia Pacific region now accounts for more than two-thirds of global output.

BP said the world had proved reserves of coal to meet 109 years of global production, by far the largest reserves-to-production ratio for any fossil fuel. The US holds the largest individual reserves, followed by Russia and China.

 


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Monday, June 10, 2013

ASIA: Germany’s BASF to invest €10 billion, create 9,000 jobs and achieve €25 billion in sales between 2013 and 2020

(EnergyAsia, June 11 2013, Tuesday) — Germany's BASF has unveiled its "smart growth" strategy for the Asia Pacific region with plans to invest 10-billion euro, create 9,000 new jobs, achieve 25-billion-euro in sales and realise one billion euro in efficiency measures over the next seven years. (US$1=0.75 euro).

The global chemical giant said it is also committing a quarter of its global R&D activities in the region to develop solutions to meet the challenges of resource efficiency, food and nutrition, and improve the quality of life. It will aim to provide solutions for low-carbon construction, advanced pharmaceutical production, environmentally-friendly coatings, sustainable packaging, energy-efficient vehicles, renewable energy and less resource-intensive agriculture.

By 2020, BASF said it plans to employ around 3,500 R&D personnel in the region, up from 800 last year. It will establish facilities to research electronic and battery materials, agriculture, catalysis, mining, water treatment, polymers and minerals.

Following the recent inauguration of the BASF Innovation Campus Asia Pacific in Shanghai, China, the company expects to establish a second similar campus as part of its human resources development programme to strengthen its presence in the region. Its global Learning Campus in Asia Pacific which includes a facility in Singapore will aim to develop regional talents and provide a hub for learning innovation.

The company will look for solutions to meet the needs of Asia's emerging middle class including affordable mass housing, food fortification, wind energy, and water purification. For the first time, it will explore untapped markets in Mongolia, Laos, Myanmar and Cambodia.

"In the next decade, Asia Pacific will face huge challenges while remaining the fastest growing market for the chemical industry. With our strategy, we are positioning BASF as the leading provider of sustainable solutions for the Asia Pacific region," said Martin Brudermüller, BASF's vice chairman with responsibility for the region.

"Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region."

 


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Thursday, June 6, 2013

EXXONMOBIL Singapore mega cracker now producing ethylene / New PE and PP plants

ExxonMobil Chemical's (Baytown, Texas / USA; www.exxonmobil.com) new world-scale cracker at Singapore’s Jurong Island has not only begun producing ethylene, but it has also doubled the steam cracking capacity at the complex, the company announced in a statement issued to the media at the start of June.

In the coming weeks, the mega-petrochemical facility, powered by a 375-megawatt cogeneration plant, will be boosting production at its three polyethylene plants, two polypropylene plants, a specialty metallocene elastomers unit and its expanded oxo-alcohol and aromatics units – see Plasteurope.com from 04.01.2013.

According to the release, the American company completed the facility expansion in December 2012 and, in doing so, also set an industry-leading record in construction safety with more than 83 million hours worked without an injury involving a lost day of work.

According to Plasteurope.com’s Polyglobe database (www.polyglobe.net), the naphtha cracker has nameplate capacity for 1m t/y of ethylene, 500,000 t/y of propylene and 340,000 t/y of benzene, now complements a 990,000 t/y cracker already in operation. In total, the expansion adds 2.6m t/y of finished product to the US petrochemical giant’s portfolio, including its first specialty elastomers and metallocene PE production in Asia-Pacific. Two new 650,000 t/y LLDPE lines complement an existing 600,000 t/y LLDPE facility with a new 450,000 t/y PP plant operating alongside an older 400,000 t/y PP line.

“This expansion gives [our company] unparalleled feedstock flexibility in the industry and positions the Singapore petrochemical complex well to serve growth markets from China to the Indian sub-continent and beyond,” said Matthew Aguiar, chairman and managing director or the company’s Asia-Pacific arm.

 


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Lanxess officially opens Singapore rubber plant

LEVERKUSEN, Germany—Lanxess A.G. officially has opened its butyl rubber plant on Jurong Island in Singapore, one of three state-of-the-art facilities the company operates on three different continents.

Lanxess said it has invested approximately $522.6 million in the facility, which produces halobutyl rubber and butyl rubber. About 160 jobs have been created at the facility, which Lanxess calls the most modern of its kind in Asia.

About 400 guests attended the opening ceremony, including Teo Chee Hean, deputy prime minister of Singapore; Angelika Viets, German ambassador to Singapore; and Ron Commander, head of the Lanxess butyl rubber business unit.

The butyl rubber facility began start-up earlier this year, and production has increased gradually since then. Lanxess expects the facility to achieve full capacity of 100,000 metric tons in 2015.

"This is the largest investment in the company's history and underlines the importance of Asia as a location for our synthetic rubber business," said Axel C. Heitmann, Lanxess' chairman of the board of management. "We have clearly built this plant with the future of mobility in mind because we think and act long-term."

Lanxess said about 10 percent of its investment went toward technology that allows the plant to produce butyl rubber more environmentally efficient. The company operates butyl rubber plants in Sarnia, Canada, and Zwijndrecht, Belgium.

Lanxess said the butyl rubber market is expected to grow on average by 5 percent in the coming years, with demand in Asia leading the way. According to the company, the tire industry accounts for around three-fourths of its butyl rubber sales, and more than 50 percent of sales is generated in Asia.

Other applications for Lanxess' butyl rubber are in pharmaceutical closures, protective clothes, shoe soles, adhesives and chewing gum.

 


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EMA wants to further open up LNG market

 

 

It is barely a month since Singapore's liquefied natural gas (LNG) terminal begins commercial operations and the Energy Market Authority (EMA) is already making plans to open up the LNG market further.

Singapore's LNG Terminal on Jurong Island. (Photo: MTI)

SINGAPORE: It is barely a month since Singapore's liquefied natural gas (LNG) terminal begins commercial operations and the Energy Market Authority (EMA) is already making plans to open up the LNG market further.

Currently monopolised by one LNG importer, EMA is seeking industry feedback on whether it should introduce competitive licenses to multiple LNG suppliers.

Analysts said this would boost Singapore's price competitiveness in the energy market and also go some way in developing its position as a secondary market for LNG.

There is currently one sole supplier of LNG to Singapore - British-based BG Group. It was awarded an LNG importer's licence in 2008 to import and sell up to three million tonnes per annum of LNG for up to 20 years.

Singapore started importing LNG with the commencement of commercial operations at the LNG terminal on Jurong Island in May 2013.

However, rather than just operating from one source, the government wants to keep its future options open especially at a time when the global energy market is moving towards spot supplies to hedge against volatility.

LNG is increasingly sold in shorter contracts and spot cargoes rather than through long term high volume contracts. Experts said Singapore's LNG import framework must reflect this change as it will give LNG players more flexibility and also allow Singapore to compete more effectively in the LNG market.

The EMA earlier concluded the first round of industry consultation on the post-3 Mtpa LNG import framework on March 30 last year. The initial consultation paper outlined two possible frameworks for industry feedback on a Regulated Sole Importer (RSI) and Multiple Aggregators frameworks.

EMA's latest proposal calls for a competitive licensing framework that would see Singapore buying LNG on demand and reduce its concentration risks of only buying from one supplier.

For the moment, LNG buyers in Singapore have to work with BG Group to get their supplies and are allowed to re-sell it to anyone else domestically.

Ravi Krishnaswamy, vice president of energy and environment at Frost & Sullivan, said: "What EMA is trying to do is to allow the buyers to on-sell the gas using the domestic pipeline network to other interested parties especially if they have excess supply. This also in a way tries to help the buyers who may not have a need for all that capacity in that point of time to hedge the risk with respect to the take or pay contracts."

More buyers and sellers in the LNG market would also boost liquidity and lead to the trading of LNG futures contracts as demand for LNG continues to grow.

According to EMA's report, Singapore's near-term incremental gas demand is not large. The incremental demand up to 2018 is estimated at around 1 to 1.5 million tonnes per annum. However, demand is expected to increase more substantially after 2020.

Stephanie Wilson, managing editor of Asia Power at Platts, said: "There is certainly a growing demand for them but as yet, we don't have any LNG futures traded on an exchange. It is something that will probably happen in the next couple of years. I know in Japan, they are talking about launching a futures contract as early as 2015 as they deregulate their energy industry. Whether or not it will bring down the price of LNG, certainly these guys need something to hedge against now that the market is becoming more volatile." 

EMA is also expecting new supplies of gas when liquefaction projections from the US, Australia, and Russia enter the market over the next decade.

"When it comes to main competitors to becoming a trading hub, Japan is clearly a one of the countries in the region that can take that title. They already have a very liquid market, they have many players involved. The only problem that they have right now is that the prices are regulated in a sense so if they were to launch a LNG futures contract, and unbuckle the energy industry and deregulate the whole thing, you would see more competition emerging in Japan. They become more liquid and flexible which is what you need to create an LNG trading hub," said Ms Wilson. 

The deadline for feedback and comments on the consultation paper is July 31, 2013.

- CNA/fa

 


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Wednesday, June 5, 2013

CHINA: Annual thermal coal demand to double to almost seven billion tonnes by 2030, says Wood Mackenzie

(EnergyAsia, June 6 2013, Thursday) — China's coal appetite will not let up, leading to demand to double to nearly seven billion tonnes per year by 2030, said consultant Wood Mackenzie.

In its report titled "China: The Illusion of Peak Coal", the consultant said that despite official efforts to limit coal consumption and increase the use of alternative energy sources, China will continue to favour the fuel.

"It is very unlikely that demand for thermal coal in China will peak before 2030," said William Durbin, Wood Mackenzie's Beijing-based President of Global Markets.

"China's aggressive investment program for nuclear, natural gas and renewables capacity is centred in the coastal region while coal-fired capacity grows in the central and western provinces. Indeed, there are also a plethora of coal-intensive conversion projects being built or planned that are significantly adding to demand."

He said coal is an important natural resource for a number of provinces seeking investment, jobs and tax revenues. Already, there are government-approved coal conversion projects (coal-to-gas, coal-to-liquids, coal-to-petrochemicals) that account for over 250 million tonnes/year of thermal demand. Additionally, there are planned projects that will increase demand by another 600 million tonnes/year.

Md Durbin said: "Wood Mackenzie's analysis already takes into account a rapid improvement in energy efficiency the likes of which have not been seen. We expect power demand per unit of GDP to fall by half in just 17 years, an extraordinary achievement for an economy experiencing such sustained growth.

"In spite of this efficiency improvement, power demand is still set to nearly triple to 15,000 Terawatt hours (TWh) by 2030. Indeed, if expected efficiency improvements do not materialise, then in the absence of alternatives, coal demand could increase further."

Mr Durbin said Chinese industrial demand for thermal coal is expected to grow from 1.5 billion tonnes/year to nearly 2.1 billion tonnes/year by 2030. In comparison, the US, the world's second largest coal market, consumes only one billion tonnes/year.

"If a cap on coal consumption in China is imposed, it will come at a cost to provincial economies," he said.

For China to reduce power-driven demand for coal, Mr Durbin said a significant increase in the availability of natural gas for the power and industrial sectors is required. But natural gas supplies will not keep pace with demand growth due to modest investment in conventional reserves and the very slow development of domestic unconventional shale gas reserves. Additionally, the high cost of LNG and pipeline imports will render this fuel uncompetitive with low cost coal.

China's gas price and power tariff regulations will have to be reformed to create incentives for the national oil companies (NOCs) to make expensive investments in unconventional gas.

Mr Durbin said: "Our analysis already assumes an intensive investment program in unconventionals post-2020. To ramp up shale gas developments and production faster to displace coal will require a near-doubling of investment. We expect coal to hold its cost advantage until shale gas breakeven costs fall by 40-50%."

Aside from coal substitution by natural gas, China hopes to reduce coal usage in the coastal demand centres by building ultra high voltage (UHV) electricity transmission lines linking the country's northwestern and southwestern regions.

Wood Mackenzie's report concludes this will have a limited impact on coal demand. As the transmission lines from the northwest will transmit coal-fired generation, it will merely shift coal demand from the coast to the interior. The UHV lines from the southwest will transmit seasonal hydro, requiring base load coal when hydro output falls. The net effect of the UHV lines and the non-coal-fired capacity is a flattening in thermal coal demand in the coastal power region.

Mr Durbin said: "Government mandates to improve the environment by reducing coal use will require steep investments in alternatives, the use of emission control technology or reduce economic growth rate targets further—options which are not currently happening.

"What is noteworthy, however, is that there is greater potential for further demand growth beyond our expectations. Failure to meet an aggressive non-coal power capacity build, investment in more efficient technologies and the expansion of the UHV network will increase the dependence on and use of coal.

"In the end, China's thermal coal demand will see persistent growth until 2030, rendering peak coal an illusion."

 


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Tuesday, June 4, 2013

AZERBAIJAN: Singapore’s Keppel O&M secures contract to build US$800 million semisubmersible rig

(EnergyAsia, June 5 2013, Wednesday) — Singapore's Keppel Offshore & Marine Ltd (Keppel O&M) said it has secured a contract from Caspian Drilling Company Ltd, a subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR), to build a US$800 million semisubmersible drilling rig that includes furnished equipment.

Keppel O&M said it will deliver the project, secured through its subsidiaries, Caspian Rigbuilders BV (an affiliated company of Keppel FELS) and Caspian Shipyard Company (CSC), in the fourth quarter of 2016.

The rig will be built to Keppel FELS' proprietary DSSTM 38M design, which has been customised for the Caspian Sea's harsh environment condition. It is designed to operate in 1,000m of water and drill to 13,000m, and is outfitted with an 800m self-contained eight point mooring system designed to meet high wind speeds in the open sea. The pontoons have been designed for the rig to transit in channels with shallow draft of less than seven metres.

Keppel said its Caspian Shipyard Company (CSC) yard in Azerbaijan, will fabricate, integrate, test and commission the rig while its joint-venture yard with SOCAR, Baku Shipyard LLC, will undertake part of the fabrication of the pontoons and columns. Keppel FELS will provide engineering, procurement and technical support.

CSC, the most established yard in the country, has a firm track record of completing rigs for the Caspian Sea, having delivered the first semisubmersible (the DSSTM 20 Maersk Explorer, renamed the Heydar Aliyev), jackup rig (Transocean's Trident 20 jackup rig) and ice-class floating storage and offloading (FSO) vessel.

SOCAR's President, Rovnag Abdullayev, said:

"We are keen to expand our offshore drilling programme to drill wells such as the Babak and Absheron fields in addition to the Shah Deniz field. We have ordered the first of our new next-generation rigs from Keppel. We are confident that the Keppel-designed rig is a robust and efficient rig that will increase our offshore drilling capabilities."

Tong Chong Heong, Keppel O&M's CEO, said the company will harness the synergies of its global network of yards in the design and construction of this rig.

"Keppel O&M has built up a strong track record in delivering significant projects for Azerbaijan and this latest order is an affirmation of our abilities to deliver to our customer's need. Having operated in Azerbaijan since 1997 and developed a strong partnership with SOCAR, we understand the requirements for rigs to operate in the Caspian environment," he said.

"This is an important market with great potential which is why we have added another yard, Baku Shipyard, to our capabilities here. Together, our yards are able to provide value-added solutions and extend our offerings for the Caspian Sea. We have tailored the DSSTM 38M design as a cost-effective rig equipped with the latest safety and environmental features to operate efficiently in the Caspian Sea."

Jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants, the DSSTM 38M design is an enhanced design of the successful DSSTM 38 rigs that are operating in Brazil.

Azerbaijan, Central Asia's largest offshore oil and gas producer, plans to build more rigs to exploit the Caspian Sea's vast untapped oil and gas reserves.

 


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Monday, June 3, 2013

VIETNAM: Sembcorp’s 1,200MW plant to be included in national power development master plan

(EnergyAsia, June 4 2013, Tuesday) — The Vietnamese government has approved and included a 1,200MW coal-fired power plant by Sembcorp Industries in the country's power development master plan for 2011 to 2020, the company said.

The Singapore firm said subsidiary Sembcorp Utilities has also been appointed by the Vietnamese government to own and develop the power project in the Dung Quat Economic Zone in the central province of Quang Ngai province.

At a ceremony held in Singapore last week, Sembcorp's Group President and CEO, Tang Kin Fei, was presented the approval letter by the Secretary of Quang Ngai Provincial Party Committee, Vo Van Thuong. The presentation ceremony was witnessed by Singapore's Prime Minister Lee Hsien Loong and Vietnam's Prime Minister Nguyen Tan Dung.

The 10,300-hectare Dung Quat Economic Zone is being developed as a major industrial and economic hub that includes oil refining and petrochemical industries with access to markets in Laos, Thailand and Myanmar. The zone is being expanded to eventually cover an area of over 45,000 hectares by 2015.

This is Sembcorp's second power project in Vietnam. Sembcorp owns a 33%-stake in the Phu My 3 power plant, a 746-MW gas-fired power plant which began commercial operation in 2004, in Ba Ria-Vung Tau province in southern Vietnam.

Sembcorp Industries' subsidiary, Sembcorp's Urban Development business, is developing its fifth industrial project in the country through a joint venture in the Vietnam Singapore Industrial Park (VSIP).

The S$337.8 million VSIP Quang Ngai comprises a 600-hectare industrial park located within the Dung Quat Economic Zone as well as a 520-hectare site zoned for commercial and residential development near downtown Quang Ngai city.

 

 


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Sunday, June 2, 2013

CHINA: Air Liquide wins major contract to supply gases for coal gasification project

(EnergyAsia, June 3 2013, Monday) — France's Air Liquide said it has just signed a long-term contract with Fujian Shenyuan New Materials Co Ltd to supply industrial gases for a coal gasficiation project in Fujian province in southeastern China.

Air Liquide said it will build an eight-unit industrial gases complex comprising an air separation unit of 2,000 tonnes of oxygen per day, a gasification unit, a synthesis gas purification unit and an ammonia plant to supply hydrogen, nitrogen and ammonia for the caprolactam production plant at the Lianjiang Kemen Economic & Development Zone. The French company did not say how much it plans to invest in the project.

To be commissioned from 2016, the complex will produce 75,000 Nm3/h of hydrogen and 250,000 tonnes per year of ammonia. Pure oxygen is used to transform coal in synthetic gas to produce hydrogen which will be combined with ammonia to make caprolactam, an intermediate for nylon in the textiles industry.

Six of the complex's eight units will use Air Liquide's world-leading proprietary technologies. They will contribute to purify synthesis gas and prevent sulphur emissions responsible for acid rain.

Air Liquide said its strong operations and engineering integration capabilities in China as well as expertise in coal gasification will enable it to meet Fujian's demand for a full range of industrial gases from coal and oxygen to pure hydrogen.

Privately held Fujian Shenyuan will supply all of its caprolactam production to two fully owned subsidiaries, which together have a 12% market share of the nylon textile filament market in China.

 

 


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