Page 19 - DMEA Week 38
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DMEA                                        NEWS IN BRIEF                                             DMEA







       Siemens Energy to help              the companies facilitated seamless   them to death before the tanker burst into
                                           communication and smooth negotiations
                                                                                flame, This Day local website reported.
       reduce emissions at NLNG            virtually.”                          State Sector Commander of the Federal Road
                                                                                  Providing details on the incident, Kogi
                                              Manufacturing, testing, and packaging
       plant                               of the compression train will take place in   Safety Corp Idris Fika Ali confirmed that 23
                                                                                people were killed in the explosion while one
                                           Duisburg, Germany, with a Free on Board
       Nigeria LNG (NLNG) selected Siemens   delivery slated for Q4 of 2021.    child survived with injuries.
       Energy to provide a cryogenic boil-off gas                                 He went on to say that the occupants of the
       (BOG) compression train for its Bonny                                    10 vehicles involved have been killed.
       Island plant. The solution will play a key   Glencore sues Cameroon’s
       role in providing additional BOG handling
       capability and spares for the existing system.  Somara over unpaid oil   Fitch affirms Saudi Aramco
         The new BOG compression train will
       be driven by a high-efficiency electric   supplies                       long-term issuer default
       motor and includes two Siemens Energy
       centrifugal compressors.            State-owned refinery Sonara was sued   rating at A, outlook stable
         Located in Finima, Nigeria, the Bonny   before the High Court of Justice in London,
       Island plant has been in operation since   according to specialised news outlet Energies   Fitch, a ratings agency, affirmed Saudi Arabian
       1999. Siemens’ partnership with NLNG and   Media, which quotes Law360, a website   Oil Company’s (Saudi Aramco) long-term
       the Bonny Island project can be traced back   specializing in legal affairs and commercial   issuer default rating at A, assigning it a
       over two decades when the plant was first   litigation.                  stable outlook. Saudi Aramco is the world’s
       commissioned.                          Before this English court, Glencore   largest oil producer. Its business profile is
         “With more than 20 years of safe   Energy UK Ltd (a subsidiary of Swiss   characterised by large-scale production, vast
       and reliable production, the NLNG   commodities trader Glencore), via the law   reserves, low output costs and expansion into
       Bonny Island plant is a staple facility   firm Ince Gordon Dadds, is demanding the   downstream and petrochemicals.
       in the global LNG industry,” said Arja   payment of €14.7 million, i.e XAF9.6 billion.  Saudi Aramco’s rating is driven by its
       Talakar, Senior Vice President, Industrial   According to Glencore, this amount   conservative financial profile leaving it with
       Applications Products for Siemens Energy.   represents, for the most part, late payment   a net cash position at end-2019. Saudi Arabia
       “NLNG’s selection of our cryogenic BOG   penalties in connection with a supply   has agreed with other OPEC+ countries to
       compression technology is a testament not   contract where 1.6 million barrels of crude   make significant production cuts in 2020-
       only to the reliability and performance of   oil were delivered to SONARA between   2022 to re-balance the global oil market. Fitch
       our existing equipment at the plant but   November 2012 and January 2015. The Swiss   estimates Saudi Aramco’s liquids production
       also to our focused service and ability to   trader sued its partner for not paying their   will fall by about 7% year on year in 2020
       meet local content requirements through   invoice within the contractual deadlines.   before rebounding gradually in 2021-2022,
       our in-country presence. The new BOG   Most of the payment demanded is made   but expects the company to benefit from
       compression train will contribute to   of interests Glencoe deemed entitled to,   stabilised oil prices. The company was also
       NLNG’s goal of reducing greenhouse gas   however, Law360 adds.           able to revise down its capex budget to $25bn-
       emissions in a highly sustainable manner.”                               $30bn in 2020, compared with $33bn in 2019.
         The order further establishes Siemens                                    Saudi Aramco’s business profile is very
       Energy’s leading role in LNG boil-off gas   23 dead in Nigerian fuel     strong. According to Fitch, its lifting costs
       compression. The company has a fleet of                                  were $2.8 per barrel of oil equivalent (boe)
       cryogenic BOG compressors that have   tanker crash                       and upstream capex of $4.7 per boe in 2019,
       accumulated more than 4.2mn hours in                                     much lower than those of competitors.
       service.                            At least 23 people were killed on September   Saudi Aramco’s business profile also benefits
         “Because of current restrictions   23 as a fuel tanker crashed in Nigeria’s central   from a very large scale of production and
       brought on by the COVID-19 pandemic,   state of Kogi, local media reported.  a vast proven reserve life in excess of 50
       all discussions between Siemens Energy   The incident took place on the Lokoja-  years. However, it is more exposed to energy
       and NLNG were conducted remotely via   Abuja highway when a petrol tanker loaded   transition risk than other oil majors, as it
       virtual meetings,” said Matthew Russell,   with premium motor spirit lost control and   is less integrated into natural gas and is not
       Head of LNG Industrial Applications   rammed into five cars, three tricycles and two   planning to diversify into renewables on a
       Products for Siemens Energy. “In the end,   motorbikes.                  large scale.
       proactive planning, perseverance, and   The tanker reportedly fell on one of the
       the long-standing relationship between   five cars which was carrying a family crushing
















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