Current Trends in the Oil & Gas Industry of the Asia-Pacific

The Asia-Pacific is keen on boosting the productivity of new and established oil and gas reserves within its territories. 

The Asia-Pacific’s demand for oil and gas continues to rise as it witnesses rapid urbanization and industrialization. At the moment, the Asia-Pacific is said to be consuming approximately 25% of the world’s oil supply, 45% of coal and 10% of natural gas. While it has traditionally supported its demand with exports from other regions, at present countries in the Asia-Pacific are taking significant steps towards decreasing import dependency and boosting regional energy security and autonomy.

Courtesy www.gineersnow.com

In order to satisfy the increasing demand for energy, oil & gas and petrochemicals, and thus encourage further regional economic growth, the Asia-Pacific is keen on boosting the productivity of new and established oil and gas reserves within its territories.

Renewed Energy

Some of the more mature oil and gas reserves in the region are found in China and India, and in certain parts of Thailand, Malaysia, and Indonesia. Currently, new oil frontiers are being developed in other countries, like the Philippines and Myanmar. Exploration of unconventional oil and gas reserves in deeper and more remote waters is notably gaining traction.

National oil companies within the region, such as the China National Offshore Oil Corporation (CNOOC), India’s Oil and Natural Gas Corporation (ONGC), Malaysia’s Petronas, Thailand’s PTT and Vietnam’s PetroVietnam have taken the lead in investing in and developing the region’s oil & gas industry. Additionally, independent oil & gas companies and international oil companies are seeing increasing regional participation.

Courtesy www.gineersnow.com

American and European oil & gas titans have started ramping up their activities within the Asia-Pacific, with the keen interest of capitalizing on the region’s rapidly expanding market. Some of the more notable regional activities of international oil companies include Exxon Mobil’s agreed acquisition of Papua New Guinea’s InterOil, British Petroleum’s (BP) plans of expanding its Tangguh LNG project in Indonesia, and Chevron and Exxon Mobil’s bid to invest in an oil project in Kazakhstan, which is geared towards transporting crude to China. Other international players actively participating in the regional oil & gas activities include Reliance, Shell and Murphy.

Spotlight: In-field Power Generation Technologies

But while the Asia-Pacific oil & gas sector is gradually picking up the pace, the industry players remain cautious about the volatile prices, the challenges of exploration and production in harsh remote areas and other environmental and technological concerns. With this in mind, oil & gas operators are constantly in search of ways to enhance long-term production, control operational expenditure and minimize the environmental impact of their operations.

One aspect that industry players aim to optimize is in-field power generation, considered the life-blood of oil & gas operation.

Temporary power plants can prove to be a viable power generation option for oil & gas operations. Turning to rental power solutions can spare new and mature oil & gas companies alike from making a huge investment in permanent power facilities amidst this uncertain economic climate. Opting to rent power plants will not require a substantial capital investment, and the power produced can be easily paid from operational revenues. Because rental power plants are completely scalable, they can support the energy requirements of various processes of oil & gas operations of any size.

Temporary power plants can be transported from and to virtually anywhere in the world, even in extremely remote areas where new oil & gas facilities are being established. Equipment comprising rental power stations are enclosed in industry-grade containers so they are suitable for safe and reliable operation even in the harshest environments. They are modular so they can be laid out and installed in various configurations even in the limited spaces available in oil & gas facilities.

At present, many oil & gas facilities are realizing the economic and environmental advantages of using natural gas to provide power for its operations. While oilfield equipment is traditionally powered by diesel generators, natural gas generators are progressively gaining utilization in oil & gas operations. Its growth within the industry is largely spurred by the development of modern power generation solutions capable of running on-site natural gas, the increase in unconventional gas resources and the strict implementation of emission regulations in many countries around the world.

For more information on how rental power plants can be beneficial to oil & gas operations, visit: http://www.altaaqaglobal.com/industries/oil-gas

What Lies Ahead

The Asia-Pacific is expecting continued economic growth of 7.3% in the coming years. What this means is that the region’s energy demand will proportionally increase. This, in addition to the modest recovery in crude prices, drives the expansion of the oil and gas market in the Asia-Pacific. But while national and international oil & gas players are excitedly looking to ride this new growth wave, they remain optimistically cautious of the industry’s prospects. Having said this, they remain on the look-out for innovations and technologies that can enhance their productivity and mitigate any associated risks.


-Ends-


PRESS INQUIRIES
Altaaqa Global
Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com

Sources consulted: 

http://www.marketwatch.com/story/asia-pacific-upstream-oil-gas-services-market-to-grow-at-4-cagr-through-2021-2016-11-08-22034846

http://erm-academy.org/publication/risk-management-article/changes-asia-pacific-oil-and-gas-segment

http://asia.nikkei.com/Business/Trends/Energy-majors-look-to-Asia-Pacific-for-growth

http://altaaqaglobal.blogspot.ae/2016/04/utilizing-stranded-gas-to-boost-long.html

Why Do Mines Consume Enormous Amounts of Electricity?

Mines require copious amounts of electricity to support various functions. In fact, owing to the huge amount of work and processing that go into production, mining is one of the most energy-intensive industries in the world, accounting for approximately 5% of the global electricity consumption.

To further illustrate, in Chile, considered as the world’s largest copper producer, mining is responsible for more than 20% of the country’s total power consumption. In Zambia, mining accounts for a whopping 50% of the country’s power utilization.

Obviously, no mine can operate without electricity. And without mining, the world will see no houses, skyscrapers, vehicles, airplanes, mobile phones, laptops, computers and a gazillion other things. But, have you ever wondered just how much electricity is required to power a mine throughout its lifetime?

Let’s have a quick look at some of the energy-intensive work that takes place in a mine. There is blasting open the earth, crushing and grounding millions of tons of ore, and chemically processing the ore prior to export. Round-the-clock. Throughout the year.

Then, there are the electricity-gobbling pieces of machinery, like rope shovels. Rope shovels alone are said to require an average of 11,000 KW throughout its 20-hour operation.

There are also additional energy-consuming factors which vary from mine to mine. Let us say, the presence of underground water. Do you know that pumping out millions of liters of water every day consumes an amount of electricity so huge that it is reported by some mining companies as the largest component of their energy costs?

Electricity is vital to almost every function of a mine that having sufficient power at the site is non-negotiable. Unfortunately, many mine sites across the globe have to cut back on power consumption because of power shortages, load shedding or a limited access to a reliable power supply. Though it should be possible to reduce power consumption in some of the perceived “non-essential” areas, this can only be done for so long before it begins to affect the entire operation and, thus, the production levels.

In response to this risk, many mining companies are deciding to invest multi-millions in building their own power generation or transmission facilities. But obviously, building one’s own energy infrastructure is tremendously expensive, and this can easily jack up the capital cost for a new project. And given the current volatile market condition, and the uncertain future of nascent mines, making such a huge non-core investment may not make sense altogether.

Here, then, lies the conundrum for mine operators: Do they build their own power facility to potentially provide ample electricity to their sites but, in doing so, make a huge capital investment; or be content in reducing electricity consumption in their sites and save money, but miss out on maximizing the site’s production levels?

The truth is, mine operators are not limited to just these two choices.

For example, they can choose to rent power plants instead of building their own. In doing so, they will not have to devote, rather strap, a huge part of their working capital on a non-core investment.

During the feasibility and exploration stages, renting power plants will give them the freedom to start with a small power plant, which they can grow as their operations expand.

Can temporary power plants support mine operations even in remote areas? Sure.

Rental power plants are easily transported from and to anywhere in the world and can function in any site no matter where on Earth it is situated. Temporary power plants can directly connect to any site’s grid even without a sub-station. They can also switch operational modes from grid to island, to base load or to standby at a push of a button in mere minutes, so they can function in mine sites either as the sole source of power or in sync with the grid.

Bottom line, going for the rental option will significantly reduce a mining project’s estimated capital cost and will cushion mining companies from the impact of making a huge non-core investment in this highly volatile mining market.

So, mines consume colossal amounts of electricity because of the number of energy-intensive functions that go into their operations. And, even as the industry faces risks relating to electricity supply and access to reliable energy sources, there are power generation technologies available, like temporary power plants, which can help mine operations sustain profitable levels of production.


-Ends-


PRESS INQUIRIES
Altaaqa Global
Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com


Sources consulted:
“Why mines consume such large amount of electricity”. Zambian Mining Magazine. www.miningnewszambia.com. 16 October 2016.

Altaaqa Global Achieves ISO Recognition for Energy Performance

The company is the first and thus far the only temporary power provider to have its projects certified in accordance with ISO 50001:2011 standards 

After months of rigorous process alignment and extensive audit, Altaaqa Global Caterpillar Rental Power, a leading global provider of multi-megawatt temporary power solutions, has achieved ISO 50001:2011 certification from TÜV NORD, the ISO-accredited certification body headquartered in Hanover, Germany.

ISO 50001:2011 specifies requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement in energy performance within its operations and projects.

“ISO 50001:2011 is applicable to any organization wishing to ensure that its products and services conform to its avowed energy policy”, said Shibu Davies, General Manager for Certification, HSD & Lab at TÜV NORD. “This certification awarded to Altaaqa Global, the only rental power company in the world to have achieved the feat to date, is a testimony to the company’s steadfast dedication to delivering multi-megawatt power generation projects that efficiently use energy, conserve natural resources and help in combatting climate change.”

Meghana Millin, Quality and HSE Officer of Altaaqa Global, described how the company ensures that its energy policy is implemented and adhered to across its processes. “We train our sights on providing the most energy efficient and environmentally responsible power solutions to our clients. Thus, we remain committed to our energy policy from the selection of the power equipment, to the designing of the power plants, to transport, through project installation, commissioning and maintenance. Furthermore, we regularly upgrade our current installations to further improve on their energy performance.”

Majid Zahid, Altaaqa Global’s Chief Commercial Officer, shed light on how the company guarantees customer satisfaction in all its multi-megawatt rental power projects: “We ensure that our power plants maintain the highest level of efficiency by having their performance monitored and evaluated by reputable global certification bodies. This way, we assure our clients that our power projects do not only supply uninterrupted reliable electricity, but also offer cost savings and minimal operational expenditure.”

For his part, Peter den Boogert, CEO of Altaaqa Global, called upon the rental power industry to take up the cause of energy responsibility. “Being in the business of providing electricity, the onus is upon us, temporary power providers, to conscientiously mitigate the environmental effects of our operations. That is why we at Altaaqa Global are continuously developing and optimizing our power generation solutions, so they ultimately promote real economic, social and environmental benefits. We are proud to have blazed a trail in energy performance and fuel efficiency in the IPP industry.”

In 2014, Altaaqa Global has also achieved ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environmental Management System), and OHSAS 18001:2007 (Occupational Health and Safety Management Systems) certifications, making it part of an elite list of global companies to have ever completed a triple audit and received all certifications in its first year of evaluation.

Ends

About Altaaqa Global
Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed.

http://www.altaaqaglobal.com

About Zahid Group
Zahid Group represents a diverse range of companies, offering comprehensive, customer-centric solutions in a number of thriving industries. Some of those include construction; mining; oil & gas; agriculture; power, electricity & water generation; material handling; building materials; transportation & logistics; real estate development; travel & tourism; waste management & recycling; and hospitality.

http://www.zahid.com

About TÜV NORD
TÜV NORD International GmbH & Co. KG has established business relationships in more than 70 countries of Europe, America, Asia and Africa and is now represented in all major world markets. The TÜV NORD Group has combined its acknowledged competence, versatile innovative talent and also many companies who are leaders in their market segments under the umbrella of TÜV NORD International. Now, know-how developed over many years and a dedicated, 8,400-strong workforce worldwide ensure that “TÜV NORD” is accepted as a global name for safety, quality, competence and trust.

https://www.tuv-nord.com/en/tuv-nord-worldwide/

PRESS INQUIRIES
Altaaqa Global
Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com

Déjà vu: A Solution to the Philippines’ Looming Power Supply Crisis

The Philippines has achieved impressive economic growth numbers in recent years and has further reinforced its status as one of the major economies of Asia. Now, the country finds itself amidst a power crisis that may portend a pronounced economic slowdown.

In spite of the slow global economic growth, the Philippines remained a strong economic performer in Southeast Asia. A recent World Bank communiqué substantiates this when it reported that the Philippines’ near-term economic growth was likely to remain strong, and was projected to accelerate to 6.4 percent in 2016, before slightly tempering to 6.2 percent in 2017.

Despite the positive economic outlook, there is a persistent power shortage being experienced in key industrial and commercial areas in the Philippines threatening to fade the lights on this promising growth story. The power supply shortage is most pronounced during peak summer months when hydropower is reduced from the seasonal dry spell, and when a random shutdown of a power plant on the grid can initiate a disastrous widespread power outage. Yes, the Philippines is still grappling with rolling power outages similar to what bedeviled the country in the 1990s.

The Philippines has an enormous energy potential to free itself from the shackles of the power supply conundrum, given its notable geothermal energy capacity, if not for a slew of transmission and distribution limitations, inadequacy in domestic energy production and a challenging geography. Other aggravating factors include the country’s observed dependence on imported fuel, non-subsidy of fuel on the part of the government, high electricity tariffs, and aging existing power infrastructure.

While the Philippines has managed to continually achieve impressive economic growth rates in the face of its power supply challenges, the need for a resolution is growing ever more urgent. The country’s economic expansion, among other factors, has prompted a spike in its requirement for electricity, and now the Philippines’ electric power systems are struggling to keep up. The onus is now on its leadership and on key power industry stakeholders to prevent a power crisis that can negate the economic successes that the country has achieved in recent years.

A turning point

Industry and economic experts opine that the power supply shortage in the Philippines is part of a decades-old chronic insufficiency in the country’s power sector. They point to the country’s mothballing of its sole nuclear plant in 1986 as a vital reason why the Philippines is still struggling to satiate its national electricity demand. Because no new capacity was introduced to the country’s power network, what ensued were sustained day-long power outages that fended off foreign investment, suppressed the growth of various heavy industries and stalled the country’s economy. The incoming government of President Ramos (1992-1998) resolved the power challenge through emergency powers granted by the 1991 Energy Crisis Act to conclude contracts for new power generation. The country was, then, afforded some breathing room.

Now, 18 years on, the Philippines has come full circle and is again confronting a potentially debilitating power crisis.

What is being done?

One of the country’s foremost, albeit stop-gap, response to the power supply shortage is the “Interruptible Load Program”, which entails large establishments, such as shopping malls, office buildings, and factories, to voluntarily switch their power source from the main grid to their proprietary generators when a shortage is impending. It is a program established by the Department of Energy and the Energy Regulatory Commission to help ease the energy supply deficiency in the country until new capacities are introduced to the grid. As of press time, even as details of compensation are yet to be finalized, a number of large firms have already pledged their participation.

There has also been an interest on the part of the government to review, revise and reinforce the Electric Power Industry Reform Act (EPIRA) of 2001, which mandated the privatization of state-owned power enterprises in the hope of encouraging the availability of affordable electricity and fair market competition. The government intends to amend the EPIRA to allow it to intervene in the power sector as need be. For instance, the government proposes to have its own power generation facilities so that it is able to instantly fill in the power shortfalls. Nevertheless, the project still remains to be cost-prohibitive.

The country’s energy department estimates that, with the current economic trajectory, the Philippines’ power demand will balloon to approximately 29,500 MW in 2030. The country’s power generation capacity in the same year, however, is only predicted to be at 26,500 MW – 3,500 MW short of the requirement. Here’s the caveat: In order to bridge the power supply gap, the Philippines reportedly needs USD 46 billion to set up modern power generation facilities in the country. The government is thus taking a proactive stance to woo power investors to invest in the country and help increase its generation capacity.

Not helping this effort, however, is the country’s observed excessive bureaucracy and adherence to official rules and formalities. The energy department itself estimates that it takes approximately 165 signatures and a minimum of three years only to secure the necessary permits for a permanent power plant project. Further delays may ensue in case of an eventual judicial dispute. Other processes like finalizing financial concerns, signing off project designs, sourcing equipment and materials, securing allied service providers, let alone constructing the permanent power plant also take a considerable amount of time. Thus, many foreign power companies have expressed dismay over the situation, saying that the requirements have been a deterrent to entering a market demanding a sizeable initial outlay and a commitment of at least 20 years.

There is no better time

There is no better time for the Philippines to resolve its power challenges than now. The country cannot afford to invalidate its economic achievements of recent years by risking going through a similar power crisis that reined in its economic and industrial growth. If the country wishes to go on living its Cinderella story, the Philippines should do what it can to erase serious concerns about its economic and social sustainability.

While permanent power solutions require a substantial capital outlay, temporary power technologies do not involve capital expenditure. In fact, the government, power utility providers, and other interested industry holders can pay for the rented electricity from their operating incomes. Temporary power solutions may represent a short-term restorative measure, but when employed in crucial times like this, they can be the difference between a calamitous economic collapse and a momentous economic feat.

While the government is revisiting the EPIRA, and while concerned agencies are working to streamline their regulatory processes, the Philippines can readily benefit from the temporary power solutions, which can be swiftly delivered to the Philippines and installed and powered on in as little as days. Contrary to permanent power plants that require long lead times to be completed, rental power plants can immediately supply electricity as soon as the equipment arrives at site owing to its inherent ease of installation and grid connection.

Though recent governments have made great strides in the resolution of the power crisis, there are more to be done to ensure that the Philippines’ power-generation facilities are adequate to cope with the country’s increasing demand for electricity. Until the government and the relevant industry stakeholders encounter an appropriate solution to the persistent power supply challenges, the Filipino will continue to struggle with what has notoriously become a staple of life in the Philippines.

End

PRESS INQUIRIES

Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

Rental Power Plants: Providing Reliable Electricity to the Mining Industry

A persistent shortage and instability in the supply of power around the world, in some instances for reasons beyond any party’s control, has pushed many countries and mining operators to agree to reduce power supply to mining sites. The electricity supply insufficiency and the consequent load shedding, on top of increasing overhead costs and continuously weakening commodity prices, have driven mining companies in different regions to scale down or suspend operations altogether.

“Some parts of mining operations will be halted or scaled back to cope with the regular power cuts,” say an industry player. “Electricity,” he adds, “is not only utilized in the actual mining and processing, but also in maintenance. So, we are particularly preoccupied about our old underground mines, because there power is an exceedingly high overhead cost.” He believes that with the way things are going at the present, the immediate solution to save the business is to lay off workers, by the thousands.

Some entities have tried surmounting the challenge by importing power from their neighboring countries. But while it is not a guarantee of a continuous power supply, introducing power from other countries have led to an increased cost of running mining operations, owing to higher electricity prices.

Some operators have installed local power generation systems to support the supply of electricity to the mining sites, but their power production is not always enough to run the energy-intensive processes of a large-scale mining operations, including exploration, production, and climate control.

In times of persistent power shortage, mining companies will find hiring the services of temporary power providers beneficial to their operations. It is undeniable that electricity plays an essential role in mining operations, and renting large-scale power plants can guarantee a constant supply of reliable power to mining sites, without the need to spend scarce CAPEX in building permanent power facilities. In these difficult times for the industry, mining companies will appreciate the fact that they can pay for the electricity produced by hired power plants from their operating revenues. Mining companies can also choose to add power modules to the rental power plants as their operations expand and their requirement for electricity increase.

Rental power plants are not only reliable, they are also environmentally friendly. Modern rental generators boast of cleaner operations, being able to run on a variety of fuels, including natural gas or a combination of gas and diesel. Studies conducted in different rental power plants sites around the world show that temporary power stations, like those running on natural gas, can surpass the worldwide NOx emission requirements, emitting only 250 mg/Nm3 even without after treatment.

The present times have not been favorable to the mining industry. Mining companies, established and start-ups alike, are struggling to maintain a profitable production, and this has resulted in job loss and limited expenditure. A reliable and consistent supply of electricity is one key solution to the survival and development of mining operations against the backdrop of these trying times, and rental power plants represent a technology that can guarantee just that.

End

PRESS INQUIRIES

Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com