< Previous10 FLARE TO POWER oilandgasmiddleeast.comNovember 2023 C C Energy Development (CCED) has officially launched an initiative aimed at reducing greenhouse gas emissions in its operations in the eastern coast of Oman. In a strategic partnership with Aggreko, a leading provider of industrial energy solutions, CCED is embarking on a Flare Gas-to-Power project within its Blocks 3 & 4 (Afar & Ghunaim) Operations. The primary objective of this project is to eliminate gas flaring by 2027, a crucial step toward the company’s ambition of achieving zero gas flaring. This innovative endeavour will see CCED replace diesel with previously unused associated gas, a byproduct of crude oil production, to generate electricity. The electricity generated will power various aspects of CCED’s field production assets, including facilities, wells, and camps. By adopting cutting-edge technology and transforming flare gas into a more sustainable energy source, CCED aims to make a substantial contribution to Oman’s transition towards a net-zero emissions future and greener energy alternatives. It is anticipated that this project will result in a significant 30% reduction in greenhouse gas emissions. Walter Simpson, Managing Director at CC Energy Development, expressed his enthusiasm for the project, stating, “Our flare gas-to-power project positively impacts our operational efficiency while lowering our carbon and environmental footprint. We aim to lead by example as both sustainable practices and digital transformation continue to play a key role in the energy industry and beyond. This project will also support us in effectively managing waste resources, and, more importantly, its objectives are aligned with the Oman Vision 2040, of which carbon neutrality and combatting climate change are essential components.” He added, “By leveraging the latest technologies and smart solutions from stakeholders such as Aggreko, we are driving our company towards a major transformation as we adopt more sustainable, and low-carbon practices.” Matt Parker, Managing Director at Aggreko AMEA, emphasised the growing importance of sustainability in the energy sector, saying, “Companies are placing a greater focus on sustainable practices and renewable energy sources. We are a trusted partner in flare gas- to-power projects and CC Energy Development chose to use our power solution to convert flared gas into greener electricity. As a result, we believe this project will pave the way for reducing the quantity of flared gas, cutting greenhouse gas emissions, and converting gas into a more sustainable power source.” Aggreko, is known for providing reliable, sustainable, and affordable energy solutions, became a trusted partner of CCED due to its successful track record in flare gas-to-power projects. The company has played a pivotal role in the design, construction, operation, and maintenance of two independent gas power plants within CCED’s Blocks 3 and 4, capable of delivering 33 MW of power at 33kV, utilising modern gas capture and conversion technologies. In addition to its focus on reducing greenhouse gas emissions, CC Energy Development also maintains a comprehensive approach to environmental stewardship, encompassing sustainable water and waste management. This initiative contributes to the Oman’s energy security, economic prosperity, and net- zero objectives. In this context, the Flare Gas-to- Power project represents a win-win situation for all stakeholders: it benefits the environment, reduces diesel consumption, minimises associated transportation risks, and proves cost-efficient. CC ENERGY’S PIONEERING FLARE-TO-POWER IN OMAN CC Energy and Aggreko join forces in Oman to eliminate gas flaring by 2027, cutting emissions by 30% By: Dean MikkelsenEmail - snarula@dmsglobal.net UAE Cell & +97150 6518010 CONTACT Sundeep Narula Chief Commercial Officer +971 249 161 71 (UAE Office) +973 17 405 590 (Bahrain Office)12 HYDROGEN ECONOMY oilandgasmiddleeast.comNovember 2023 H istorically, refineries have been the largest consumers and producers of hydrogen, primarily using legacy grey methods. However, in the context of the pledged net-zero scenarios and global climate goals aimed at limiting global warming to 1.5 degrees, grey hydrogen production is no longer a viable option. Transitioning from grey to blue hydrogen involves the conversion of natural gas (methane) into hydrogen and carbon, with carbon emissions and process emissions captured and stored rather than released into the atmosphere. Conversely, green hydrogen is produced through water electrolysis powered by renewable or carbon-free electricity sources like wind, solar, and nuclear energy. Hydrogen production methods will continue to evolve and expand in the coming decades. In the following paragraphs, we will explore hydrogen’s role in the circular economy and how we can create ACCELERATING THE ADOPTION OF GREEN HYDROGEN FOR A SUSTAINABLE FUTURE By Miro Cavkov, Technical Director - Euro Petroleum Consultants valuable hydrocarbon products while closing the carbon loop. The escalating need to combat climate change has spurred nations worldwide to commit to ambitious net-zero targets, driving the swift embrace of low-carbon and renewable energy sources. Among these, green hydrogen, harnessed from solar and wind power, holds immense promise, particularly in sectors that pose formidable challenges for decarbonisation. Nevertheless, this green hydrogen revolution is impeded by various obstacles including cost considerations, infrastructure limitations, and the absence of comprehensive policies. UNVEILING HYDROGEN’S DIVERSE ROLE IN THE ENERGY LANDSCAPE Hydrogen is poised to become a key player in various downstream processes, from hydrotreating and hydrocracking to hydrogenation in conventional chemical operations. However, its influence is not limited to traditional chemical processes; it is making its mark in synthetic production as well. Hydrogen is instrumental in producing two major groups of commodities: liquid fuels and chemicals. These hydrocarbons, possessing versatile properties, can be finely tuned to meet specific market demands. While some may retain skepticism about hydrogen’s potential in every market segment, it is challenging to deny its significance within the energy supply chain. Global decarbonisation initiatives have laid out clear objectives for scaling up green hydrogen production, underlining the widespread consensus among world leaders regarding hydrogen’s pivotal role in driving the transition towards a greener economy. Within the realm of liquid fuels, we identify promising market demand across various fronts, including Green Methanol, Green Ammonia, Renewable Diesel, and Jet/Sustainable Aviation HYDROGEN AS A CARBON CIRCULARITY ENABLER IN DOWNSTREAM13 HYDROGEN ECONOMY oilandgasmiddleeast.comNovember 2023 Bio-Ethanol presents another promising avenue, as it can be derived from non-edible biomass as well. Through a series of processes involving dehydration, oligomerization, hydrogenation using catalysts and Green Hydrogen, and fractionation, Bio-Ethanol can be converted into Renewable Diesel, Sustainable Aviation Fuel, and Bio-Naphtha. This diversified approach underscores hydrogen’s multi- pronged role in shaping the energy landscape of tomorrow. As the global interest in hydrogen continues to grow, there is a pressing need to ensure that the sector’s technology and its economic systems align with sustainability principles. This entails the development of specialized environmental impact assessment tools and a commitment to environmentally conscious practices from design to disposal. To propel the widespread adoption of green hydrogen as a clean energy solution, several critical factors need to be addressed: ENHANCED PROCESS EFFICIENCY The current hydrogen production landscape primarily yields grey or brown hydrogen, stemming from fossil fuels and contributing to carbon emissions. In contrast, green hydrogen, generated via the electrolysis of water using renewable energy sources, stands as a beacon for a low-carbon future. However, further technological advancements and process Fuel. The transportation sector, with its distinct segments of air travel, marine transport, and ground mobility, showcases evolving dynamics. Projections and scenarios underscore that ground transportation motor fuels may see decreased demand due to electrification transition, yet internal combustion engine (ICE) vehicles will continue to operate for several decades, even after new ICE car sales are banned. Hence, there will be an ongoing need for liquid fuels in particular regions. Air and marine transport, crucial for long-distance logistics and travel, will sustain demand for dependable fuels. Whether we explore Green Methanol or Green Ammonia, both are synthesised from Green Hydrogen and captured air components (Carbon or Nitrogen). Green Methanol, in particular, offers exceptional versatility. If not used as marine fuel, it can be directed towards Methanol-to-Jet (MTJ) technologies, which are scaling up for large-scale commercial production and complying with ASTM specifications for aviation fuels. These technologies hold a distinct ethical advantage, as they do not compete with food feedstocks, utilising feedstock sources like vegetable oils, lipids, and animal fats. MTJ technologies can be adapted to yield different proportions of Sustainable Aviation Fuel (SAF) or renewable diesel. Moreover, Methanol can be transformed into gasoline via the Methanol- to-Gasoline (MTG) process, further highlighting the potential of Green Methanol as a versatile feedstock for the future. efficiencies are indispensable for the rapid integration of this eco-friendly energy source. COST EFFICIENCY THROUGH SCALING Green hydrogen’s potential can be fully realized through achieving cost efficiency. Scaling up production can substantially drive down costs, making it more competitive with traditional hydrogen production methods. Overcoming economic barriers is paramount for making green hydrogen economically viable. INFRASTRUCTURE TRANSFORMATION Revamping and expanding infrastructure is another pivotal component in the journey towards green hydrogen dominance. The establishment of a robust supply chain encompassing production, transportation, and storage will be vital. Adapting existing infrastructure and building new facilities will be necessary to accommodate the demands of a green hydrogen-based economy. SUPPORTIVE POLICY FRAMEWORKS Government support is vital for the green hydrogen revolution. Policies and incentives are essential to make green hydrogen competitive In conclusion, traditional raw material processing will decrease, while green hydrogen’s demand and production scale up to compete with fossil fuels. The Geen Hydogen Cycle Miro Cavkov, Technical Director – Downstream & Energy Advisory, Euro Petroleum Consultants (EPC)14 CLIMATE CHANGE oilandgasmiddleeast.comNovember 2023 T he Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, emphasised the need for Africa to receive equitable treatment in addressing global climate challenges, highlighting that the continent contributes the smallest share to greenhouse gas emissions worldwide. His remarks came during the Africa Energy Week 2023 conference held in Cape Town. Africa’s energy demands are on the precipice of a significant surge, with projections indicating an almost 80% increase by 2045. Al Ghais stressed that Africa, despite its modest contribution to emissions, requires increased support and collaborative efforts to meet its burgeoning energy needs. In a world in which Heathrow Airport consumes more energy than Sierra Leone, or in which two-thirds of all primary schools in sub-Saharan Africa have no access to electricity, the same environmental yardstick should not be used to compare regions at vastly different stages of development,” stated Al Ghais during his online address to the conference. Africa holds approximately 13% of the world’s natural gas reserves and 7% of its oil resources. However, it paradoxically exhibits the lowest per capita energy usage globally. Al Ghais further argued, “Utilising Africa’s natural resources like oil and gas will help deliver energy affordability and alleviate energy poverty,” echoing a position often reiterated by the fossil fuel industry, advocating for increased oil production on the continent. Despite Africa’s considerable potential for renewable energy sources such as solar, wind, and hydrogen, approximately 600 million people in sub-Saharan Africa continue to live without electricity, and nearly 1 billion lack access to clean energy for cooking. Climate change experts have raised concerns about the management of proceeds from fossil fuel reserves in African countries, citing cases where these funds have primarily benefited corrupt political elites rather than alleviating poverty or addressing energy scarcity. They contend that the influx of petrodollars often exacerbates the poor delivery of essential services. OPEC CHIEF CALLS FOR EQUITABLE CLIMATE ACTION IN AFRICA OPEC’s Haitham Al Ghais emphasises equitable climate action for Africa and the use of natural resources to combat energy poverty By: Dean Mikkelsen “Utilising Africa’s natural resources like oil and gas will help deliver energy affordability and alleviate energy poverty” HAITHAM AL GHAIS, SECRETARY-GENERAL OF THE ORGANISATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)THE ULTIMATE UTILITIES SOURCE Utilities-me.com is home to the Middle East’s utilities industry’s top news, analyses, insights and opinions Special Reports Receive monthly reports and analyses on various trending topics pertaining to the utilities industry. Awards Take advantage of early bird access to be first in line for the industry-leading Middle East Energy Awards. 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AN ITP MEDIA GROUP PUBLICATIONSTRATEGISING ENERGY DIVERSIFICATION 16 COVER STORY oilandgasmiddleeast.com Petrofac’s new Group Chief Executive, Tareq Kawash, discusses his perspectives on the energy transition and his plans for sustaining the company’s growth trajectory November 202317 oilandgasmiddleeast.comNovember 2023 COVER STORY18 COVER STORY oilandgasmiddleeast.comNovember 2023 I n an industry known for its volatility, 2023 marked something of a turning point. Following a decade of underinvestment, the oil and gas upcycle is well underway and simultaneously, the wider sector is doubling down on its commitment to deliver secure, affordable, sustainable energy. Petrofac’s innovative approaches continue to fortify its position as part of the solution to this energy trilemma, making it an invaluable ally in powering the region’s future. This dedication is further illuminated by the appointment of Tareq Kawash as Group Chief Executive in April 2023. Bringing over three decades of rich experience, including tenures at McDermott and CB&I, Kawash’s appointment was followed by a succession of prominent contract awards. His hands- on approach has seen him actively engage at various operational sites, fostering relationships with teams, clients, and key suppliers, thereby embarking on a comprehensive journey to steer Petrofac towards a path of sustained growth. So, what are his perspectives on Petrofac, the wider sector, and its prospects for the future? “Before even walking through the door, I already had a good feel for Petrofac. The company had always been a key competitor; I had always seen it as a formidable execution machine, and, as a joint venture partner, I had met many of the people and been impressed by their client-centric culture. Since joining the company, these initial impressions have been validated, and I have been struck by two things in particular. “First is the multiculturalism. Although Petrofac was originally founded 40 years ago in the USA and is listed in the UK, it’s not seen as American, or British, or any other nationality. Instead, it’s a bona fide case of global expertise with local delivery, with an emphasis on establishing long-term local operations, nurturing local talent, and drawing on local supply chains. That is a definite asset, especially in our core MENA markets. “Second is the can-do attitude. As well as having deep expertise, Petrofac people tend to be remarkably entrepreneurial and goal-oriented. The sense you get is of a knowledgeable team, eager to devise and implement viable solutions.” FROM CONCEPT TO DECOMMISSIONING Kawash is also keen to point out that, before joining, he had underestimated the true breadth of the Petrofac offer. “Like a lot of other people here in MENA, I thought of Petrofac primarily as one of the region’s leading EPC players. We are that, of course, and have built many of the region’s most prestigious energy facilities. But we are also much more than that.” He adds, “With a full suite of operations, maintenance and engineering consulting services, we work with clients from concept development to design, construction, commissioning, maintenance, late- life strategies and, ultimately, into decommissioning. We also train local workforces to run energy facilities, operate facilities on behalf of their owners, and offer a full range of commercial models. “The more integrated the approach, the more value we can bring. A great example is how we aim to drive more integration between late life asset management and decommissioning — so the former becomes more productive, the latter becomes more predictable, and everything becomes more carbon efficient.” BROAD, BALANCED, AND IMMEDIATE VIEW OF THE ENERGY TRANSITION As the energy transition picks up pace, Kawash expects the scale of the decommissioning market to grow. But he is also clear that the energy transition won’t be linear, that the world needs a different mix of energies than it has today, and that these need to be produced in a less carbon-intensive way. Hydrocarbons will remain part of this mix for decades to come, and they will coexist comfortably alongside many other energy sources. “Many people talk of the energy transition as though it’s some future notion, which is simply about the like-for-like replacement of hydrocarbons with green energies,” says Kawash. “My perspective is very different. I say the energy transition is already well underway. It is multi-faceted, and it is already central to almost everything we do Petrofac adopts a people-based approach that cares about personal and professional development “The more integrated the approach, the more value we can bring. A great example is how we aim to drive more integration between late life asset management and decommissioning”19 COVER STORY oilandgasmiddleeast.comNovember 2023 — whether that be decommissioning ageing assets, reducing the carbon intensity of existing assets, building a new generation of low-intensity hydrocarbon facilities, or complementing them with renewable and alternative energy solutions, such as wind and hydrogen.” Petrofac has delivered substations for major windfarms across several leading developments for both HVDC and HVAC transmission platforms Tareq Kawash and Petrofac team members at ADIPEC 2023 “You must remember that a large proportion of the lifecycle emissions of hydrocarbons — up to 40% of them — emanate from the construction and operation of upstream facilities. So, as well as introducing renewables and other new energies into the mix, there is also significant scope to reduce the intensity of hydrocarbon assets. This is an area where we can make a real difference,” he adds. Kawash also points out that, for several years, a large proportion of the firm’s work has involved decarbonisation. Examples include a series of major refinery upgrades, as far afield as Kuwait, Thailand, and Lithuania. In each case, the new world-class facilities enable their clients to dramatically improve the environmental performance and quality of their fuels, while also increasing their refining capacity and diversifying their business away from pure hydrocarbon production. Meanwhile, the firm has worked in offshore wind for over a decade. It has also been actively developing the engineering for alternative fuels such as hydrogen and its derivatives. In addition, with many years’ experience in gas handling, one of its most recent and high-profile project awards is for ADNOC’s Habshan Carbon Capture, Utilisation and Storage (CCUS) Next >