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Korea Gas Corporation (KOGAS) has inked an agreement with Indonesia-based PT Perusahaan Daerah Pertambangan dan Energi South Sumatra to build a 363km gas pipeline.Under the $600M contract, KOGAS will construct a 245km gas pipeline in South Sumatra, Indonesia and another gas pipeline, measuring 118km, in Bali. It will also operate and provide the project’s maintenance services over a 30-year period.KOGAS aims to conduct a feasibility study and assess the results before making a decision whether to proceed with the project.Established in 1983 by the Korean government, KOGAS operates four LNG regasification terminals and 4,440km of natural gas pipelines in South Korea.
Construction begins on Trans Adriatic Pipeline (TAP) to supply natural gas from the Caspian Sea to Europe.TAP, part of the $45bn Southern Gas Corridor project, will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe.The 878km pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, crossing Greece and Albania and the Adriatic Sea and coming ashore in Southern Italy.TANAP, which includes the European leg of the Southern Gas Corridor, is a gateway project that will deliver 10bn cubic metres annually of new Caspian gas supplies to Europe from 2020.TAP’s managing director Ian Bradshaw said: “Today’s event marks a major milestone for the Trans Adriatic Pipeline, our shareholders and for the energy landscape of Europe.“After winning the bid in 2013 and working diligently to prepare for this moment, we are delighted to have started constructing the pipeline — a strategic project for Europe transporting new sources of Caspian gas via a new route commencing in 2020 and for years to come.”
US-based Parsons has secured a contract to provide feasibility studies and preliminary design services for an AED6.4bn ($1.74bn) sewer project in Dubai.Under the contract awarded by Dubai Municipality, engineering, construction, technical, and management services firm Parsons will provide services for two deep wastewater tunnels and associated link sewers.The company’s services include the feasibility studies, the preliminary design, the tender preparation and support, along with programme management of the detailed design and construction phases, and supervision of the construction phase of the primary tunnels and pumping station.The tunnels, with a combined length of more than 70km, will cover the key catchments of Deira and Bur Dubai, supported by about 140km sewerage links and pumping stations.Upon completion, the project will eliminate over 100 pump stations across the city that presently transfer wastewater to treatment plants in Al Warsan and Jabal Ali.Parsons Group president Mike Walsh said: “This project is significant to Dubai Municipality and its role in the development of Dubai as a global city.“Parsons has extensive success managing complex and challenging wastewater projects around the world; we look forward to providing our services to Dubai Municipality.”
Enel Green Power North America (EGPNA) has begun construction on the $220M Lindahl wind project in North Dakota, USA.Upon completion, the 150MW wind farm — owned by EGPNA’s subsidiary Lindahl Wind Project — will be able to generate about 625GWh annually, the equivalent to the energy consumption needs of more than 50,000 US households. It will also eliminate about 450,000t of CO2 emissions each year.The power generated from the Lindahl wind project will be sold under a bundled, long-term power purchase agreement to Basin Electric Power Cooperative. Rafael Gonzalez, head of North America area for Enel’s Global Renewable Energies Division, said: “Lindahl underlines the strength of Enel’s growth strategy in North America.“The new wind farm also marks the group’s entrance into a new state, North Dakota, further broadening our geographical footprint in the United States.”The wind farm is scheduled to be operational in 2017.
Bharat Heavy Electricals Limited (BHEL) has secured an INR16bn ($239.3M) contract for the construction of a coal-based thermal power project in Odisha, India. Under the contract, BHEL will be responsible for the design, engineering, manufacture, supply, construction, erection, testing and commissioning of the 1x250MW coal-based thermal unit at Rourkela Power Project on an Engineering, Procurement and Construction (EPC) basis.BHEL’s Trichy, Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants will manufacture key equipment for the project, and the power sector division of the company will be responsible for civil works and erection or commissioning of the equipment.
The European Investment Bank (EIB) has agreed to provide a £700M loan for the £4.2bn Thames Tideway Tunnel in London.The project, dubbed the ‘super sewer’, will help tackle overflows of untreated sewage into the river through the centre of the British capital.The 35-year long-term loan has been agreed with Tideway, the new regulated company established to design, build, commission and maintain the 25km tunnel, which will directly control or intercept discharges from more than 30 combined sewer overflow points stretching from Acton in the west to Stratford in the east.EIB’s vice president Jonathan Taylor said: “The new GBP700M loan for Tideway represents the European Investment Bank’s largest-ever water loan and the most significant support for UK infrastructure since Crossrail.“This demonstrates the EIB’s strong commitment as the largest source of financing for long-term investment in UK water infrastructure since before privatisation and builds on more than £2bn of support for investment to improve London’s water and waste water infrastructure since 1989.“We are pleased to support the construction of the Thames Tideway Tunnel, a world-class engineering scheme, delivering infrastructure vital to clean up the Thames.”
The 402MW Dudgeon Offshore Wind Project has secured £1.3bn of project financing.The wind farm, located 32km from the coast of North Norfolk, UK, is being developed by Statoil (35%), Abu Dhabi-based Masdar (35%), and Statkraft (30%). Allen & Overy, a UK-based law firm, is advising the Mandated Lead Arrangers on the long-term financing, which will fund the capital requirements of the wind farm.Statkraft and Statoil are also participating in the financing through sponsor co-lending, Statkraft will finance its 30% share in the project, while Statoil will finance a share of 17.5%.Chris Andrew, lead Allen & Overy partner on the deal said: “This is a landmark transaction as it’s the first UK offshore wind project to obtain financing under the UK government’s new ‘Contract for Difference’ regime.“Detailed preparatory work meant financing on this project was nevertheless executed very quickly.”
A consortium led by Ferrovial Agroman has been awarded a contract by Iberdrola to construct the Daivoes dam and hydroelectric plant on the Támega River in northern Portugal.Estimated to cost more than €90M, the project will include the construction of a concrete arch-gravity dam 77.5m high and 264m long, together with a power plant housing two turbines with a total installed capacity of 118MW.Under the contract, Ferrovial will also construct a 388m tunnel to divert the river, and a weir 71m long and 10.5m high, located 2.2km downstream of the dam.Work on the project is set to be complete in around 56 months.Daivoes is the first of four main contracts to be awarded by Iberdrola as part of the Támega river hydroelectric project and is the second to be delivered by Ferrovial Agroman for the utility in Portugal.
Wind farm infrastructure and communications delivery specialist Vysiion has secured a contract to support the installation of a 108km fibre link for the £1.3bn Rampion wind farm development.UK-based construction services firm Carillion is serving as the main contractor for the onshore connection, a project that will include the installation of cable over a distance of about 26km from landfall near Shoreham-on-Sea to Bolney, West Sussex.Under the contract, Vysiion will support Carillion’s delivery and will supply splice and test the 108km cable link from the onshore substation at Bolney to the beachhead.The wind farm is expected to provide enough energy to power about 300,000 homes annually, with a target capacity of 400MW. Vysiion infrastructure sales manager Michael Grimshaw said: “The Rampion wind farm project contract is another example of how the team at Vysiion is able to support the infrastructure requirements of the UK’s wind power industry.“Throughout the UK and on a number of on-going wind farm developments Vysiion’s fibre, communications and infrastructure expertise is proving to be both an additive and assured element of the construction.”
UK-based oil and gas services company Wood Group has won two new contracts, worth more than $140M, to provide technical services and expertise to an oil firm in Iraq.Under the three-year contracts, Wood Group PSN (WGPSN) — one of the group’s three businesses — will offer brownfield front-end engineering design, detailed engineering, project management, procurement services, system completion and commissioning support for operations and start-up on a significant onshore asset in southern Iraq.Both contracts, set to create over 100 new jobs in the region, will be executed from southern Iraq and Dubai, where WGPSN opened an office in 2015. WGPSN's eastern region managing director David Buchan said: “These two significant contract wins demonstrate Wood Group’s commitment to working closely with key clients to extend our operations in Iraq, where we see a growth market that complements our broad service capabilities, international knowledge and strong expertise. “Establishing an office in Dubai and a base in Iraq reflects our intention to build lasting customer relationships and focus on the development of our Iraqi workforce and supply chain partnerships.”
US-based Arrow Capital and the University of Ilorin have finalised arrangements for the construction of a $2.3bn solar power plant at the university in Nigeria.
NextDecade has submitted an application to the US Federal Energy Regulatory Commission (FERC) for authorisation to site, construct and operate the Rio Grande liquefied natural gas (LGN) facility and the Rio Bravo Pipeline system.Rio Grande LNG is a proposed 27Mtpa LNG export facility near Brownsville, Texas and the Rio Bravo Pipeline is a 137-mile pipeline system that will provide the facility with its feed gas. NextDecade said that this action represents the most significant milestone to date in the development of Rio Grande LNG, placing the project in an excellent position to sign offtake agreements and declare Final Investment Decision (FID) in 2017.The project is expected to create between 4,000–6,000 construction jobs, and over 200 permanent jobs, representing a potential investment of up to $20bn.NextDecade’s CEO Kathleen Eisbrenner said: “After a productive pre-filing with the FERC and extensive consultation and cooperation with the reviewing agencies and local communities, we are proud to have achieved this major accomplishment.“Despite recent low oil and gas prices, we have found robust appetite for US LNG on a long-term basis all around the world. This interest reaffirms the price competitiveness of US LNG for customers looking to diversify their gas supply on a global level.”The FERC approval is expected to be received by the end of the first quarter of 2017 and the company expects to begin exporting LNG from Rio Grande LNG by the end of 2020.
Fortum Värme has opened its new biomass-fired combined heat and power plant (CHP) in Värtan, Stockholm.The company, owned by Fortum and the city of Stockholm, will use forest residues and wood waste to produce district heat for nearly 200,000 households, requiring about 12,000 cb m of wood chips per day.The €500M project, launched in 2013, will eliminate 126,000t of emissions annually in the Stockholm area.Fortum’s president and CEO Pekka Lundmark said: “High emissions and low efficiency of heating, cooling and electricity production are typical problems in growing urban areas.“Together with the city of Stockholm, we are taking steps towards a circular economy by utilising biomass, waste and recovered heat from data centres in energy production.“Biomass is a renewable, largely local and carbon-neutral energy source. Its use increases the share of domestic energy resources particularly in Northern Europe, and it is an important building block of a sustainable energy system and bio economy.”
US-based KP Engineering has won a $100M contract from Targa Terminals, a subsidiary of Targa Resources, to build a 35,000 bpd crude and condensate splitter and an associated tank farm in Texas.The project is a result of more than two years of process study and project development work and will be located at Targa’s storage and marine terminal facility in Channelview.KP Engineering chairman and CEO Brandon Steele said: “We are very blessed to continue to win major projects, such as this opportunity to execute another midstream project for Targa — one of our most valued clients — and we are humbled that they selected us for this job.“We are able to maintain our competitive edge and create exceptional value because we employ some of the finest professionals in our industry. Their character, honor and work ethic is what makes our company great and allows KPE to deliver cost effective, quality EPC solutions.”
Spanish-based company Acciona Agua has completed construction and announced the opening of the wastewater treatment plant and underwater outlet of La Chira in Lima, Peru.The €97M project will treat the wastewater of about 3M people, representing around one-third of the population of Peru’s capital city.The plant features an advanced system to neutralise bad odours through biological bacterial treatment, reducing the atmospheric pollution created by the traditional use of chemicals in this kind of process. The plant is to be operated under a 25-year concession by a joint venture led by Acciona Agua and Graña y Montero.
Mainstream Renewable Power has received an approval from the Service of Environmental Assessment for its 264MW Cerro Tigre wind farm in Chile.Located close to the town of Antofagasta in north Chile, the $630M project will include 80 wind turbines in an area of 1,131ha and will be connected to the northern grid. Mainstream Renewable Power Chile’s CEO Bart Doyle said: “This work will contribute to the development of a diversified, clean and reliable energy mix which will provide an efficient solution to the country and the people of this region.“We are a company that develops its own projects and we are always looking for new opportunities for solar and wind energy developments, and the region of Antofagasta has important attributes that enable this.”The company will also commence construction of two wind farms in Chile: the Sarco wind farm which is located in Atacama, and the Aurora wind farm, located in the region of Los Lagos.With a combined generation capacity of 300MW, the two wind farms will provide power to the Central Interconnected System.
Enel Green Power North America (EGPNA), a subsidiary of Enel, has begun construction on the $290M Aurora solar project in Minnesota. Aurora will feature 16 PV plants with a total installed capacity of 150MWdc and will be able to generate more than 210m kWh per annum, which is equivalent to the energy consumption needs of over 17,000 US households. It will also eliminate over 150,000t of CO2 emissions into the atmosphere each year. EGPNA’s CEO Rafael Gonzalez said: "The Aurora project marks a significant step forward in the growth of our solar portfolio“By maximising the distributed solar model, Aurora highlights how innovation and design are driving the future of renewables, while providing communities with access to energy that delivers both the biggest possible environmental benefits and the most economic value.”Construction work is set to create 400 jobs at its peak, and all 16 sites are expected to be operational by the end of 2016.
TransCanada has received the final permits from the BC Oil and Gas Commission for the Coastal GasLink Pipeline Project in Canada. The pipeline will be connected to the proposed LNG Canada natural gas liquefaction and export facility near Kitimat, British Columbia. Estimated to cost about $4.8bn, the project will create about 2,000-2,500 jobs during construction.TransCanada’s president and CEO Russ Girling said: "This is a significant regulatory milestone for our project, which is a key component of TransCanada's growth plan that includes more than $13bn in proposed natural gas pipeline projects which support the emerging liquefied natural gas industry on the British Columbia Coast."A final investment decision by LGN Canada and partners is expected in late 2016 and if the project is set to proceed, construction work will begin in 2017.
India-based Reliance Power has secured approval from the government of Bangladesh to develop a $1.3bn liquefied natural gas (LGN) power project.
Saipem and consortium partners Bos Shelf and Star Gulf have secured the $1.3bn contract for Stage 2 of the Shah Deniz natural gas project in Azerbaijan. The Shah Deniz field is located 90km offshore Azerbaijan, in water depths from 75-550m.The five-year scope of work will include the transport and installation of subsea production systems and subsea structures, and the installation of fibre optic cables and production umbilicals.It will also involve the installation of 90km of pipelines, the activation, crewing and operations management of the new-build subsea construction vessel (SCV) Khankendi.Saipem’s CEO Stefano Cao said: “We are delighted to have secured this major award, which enables us to continue and consolidate our 20-year relationship with BP and Socar in Azerbaijan and to put our world-class people and technologies at their disposal for the timely and efficient delivery of Shah Deniz Stage 2. “This award also further strengthens Saipem’s key role in the construction of the Southern Gas Corridor where the company has a total of four contracts, in the upstream segment and in gas transportation infrastructure both onshore and offshore.”
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