KUALA LUMPUR: Vastalux Energy Bhd dipped below its initial public offer price (IPO) of 75 sen on its debut on the Bursa Malaysia second board yesterday.
Its share price hit 58 sen at the opening bell with 900 shares transacted and closed at 52.5 sen, down 22.5 sen or 30%.The total volume of the day stood at 5.5 million shares.
Executive director Azman Abd Ghafar said the opening price was expected due to the soft equity market.
“We are confident that our value would be reflected after the market recovers and supported by the company’s good fundamentals,” he said after the listing ceremony.
Vastalux chairman Tan Sri Zainol Abidin Abd Rashid hitting the gong to mark the company listing on the second board. With him are Azman Abd Ghafar and other company directors
He said the company would acquire two or three workboats or workbarges by next year at the cost of RM40mil to RM60mil each.
“We want to grow our revenue contribution from overseas markets to 30% in the next three to five years from about 5% currently,” he said.
Azman said the company would invest RM10mil, that was raised from its IPO, for its business expansion in the next 24 months.
He said the company intended to expand into key growth markets such as the Philippines, the Middle East and North Africa from next year, and India and Myanmar by 2011.
“We are now in Indonesia and Vietnam,” he said.
He said the company was currently bidding for contracts worth RM700mil in the domestic market, of that about 60% was from Petroliam Nasional Bhd and its subsidiaries.
On Vasalux’s public shareholding, he said: “We are confident of fulfilling the requirement within the next six months and are involved in talks with a merchant banker to explore a private or other placement to placees who are deemed public now.”
The company has been given until March 11 to comply with Bursa’s listing requirements of having a minimum 1,000 public shareholders.
It has only 698 public shareholders holding no less than 100 shares each.
Sunday, 14 September 2008
DNV to class 10 Nam Cheong offshore support vessels
OSLO: Det Norske Veritas has signed a contract with Nam Cheong Dockyard Sdn Bhd in Malaysia to class 10 new offshore support vessels (OSV) and provide Certification of Materials and Components for the Rolls Royce UT755LN and UT755CD design vessels due for completion by 2011.
The agreement resulted from Nam Cheong’s decision to partner a classification society that can ensure the OSVs will be fit and acceptable for any trade in any part of the world. Valued at €200 million (US$290 million), these vessels will either be put into trade by the yard’s own management company or sold on the spot market.
“Within the shipping industry in Southeast Asia, DNV sees a trend towards the high-end offshore market,” says Knut Ording, Country Manager for DNV Maritime in Malaysia. “We also observe that companies in this region are keen to work with DNV for the added value we can provide, based on our vast experience in offshore markets such as the North Sea. In this regard, DNV is delighted to team up with Nam Cheong Dockyard, a quality shipbuilder with over 40 years of success.”
Says Nam Cheong executive director Leong Seng Keat, “As a class society reputed for innovation and high work standards, DNV understands our requirements for the strictest reliability in all the vessels built by us. We are very confident that DNV can fulfil our expectations for the 10 OSVs to perform optimally in the toughest conditions.”
Construction of the Nam Cheong OSVs will begin in the first quarter of 2009, with the completion due in mid-2011. DNV’s classification of these newbuildings will include plan approval of design drawings and onsite follow-up. The Norwegian class society will also provide the Certification of Materials and Components to be installed onboard.
The project comprises two UT755LN vessels with Dynamic Positioning II (DP II) notation and eight UT755CD vessels with Dynamic Positioning I (DP I) notation. The UT755CD vessels will also have DNV’s high environmental performance Clean Design notation and NAUT-OSV bridge design notation.
DNV’s NAUT notations, in particular, have been proven to significantly reduce the risk of collisions and groundings by optimising the design and layout of bridge equipment and the volume of information to be handled by bridge personnel during different operational situations.
Sustained growth in the market has led to a current OSV order book of over 600 vessels globally and DNV is supporting the growing demand for such high specification vessels through industry collaborations that have contributed innovative solutions such as the X-bow. More than 300 new OSVs have been contracted to DNV class over the past two years, half of which will also have the DNV Clean Design notation.
Sustained growth in the market has led to a current OSV order book of over 600 vessels globally and DNV is supporting the growing demand for such high specification vessels through industry collaborations that have contributed innovative solutions such as the X-bow. More than 300 new OSVs have been contracted to DNV class over the past two years, half of which will also have the DNV Clean Design notation.
05 September 2008
Friday, 22 August 2008
KNM close to acquiring Brazilian firms
Oil and gas services company KNM Group Bhd entered into three sale and purchase agreements to buy 80% stakes in Brazilian companies HZM Industrial Ltda, HZM Servicos Ltda and HZM S A Industria e Comercio de Equipmentos for a total of RM55.3 million cash.
KNM first announced its intention to acquire stakes in the Brazilian companies last December but asked for an extension earlier this month.
The acquisition is being concluded via two of its wholly-owned units, KNM International Sdn Bhd and KNM Process Systems Sdn Bhd, taking over the equity from three individuals — Joao Ronaldo Pereira, Jose Maria Vieira de Novaes and Rozimiro Ferreira Lopes.
The three companies specialise in areas such as fabrication of steel structures, pressure vessels and stainless steel plates for engineering, procurement and construction contracts, and assembly, erection and maintenance of industrial plants.
“The proposed acquisition will allow KNM to enhance its presence through the design and manufacturing of process equipment for the oil, gas, petrochemicals and minerals mining industries, and enables KNM to have immediate manufacturing capacity in Brazil, access to clients in the oil, gas, petrochemicals and minerals mining industry and enhance its presence in South America,” KNM said in an announcement.
The acquisition is expected to contribute positively to KNM’s earnings for FY2008. The vendor’s original cost and dates of investment in HZM are not publicly available.
For the first three months of FY2008, KNM posted a 41% jump in net profit to RM54.1 million on the back of a 26% rise in revenue to RM331.2 million, compared to a year earlier.
KNM’s shares had been actively traded over the past few days. Yesterday, the stock closed at RM1.55, a gain of nine sen, with 2.3 million shares changing hands.
KNM first announced its intention to acquire stakes in the Brazilian companies last December but asked for an extension earlier this month.
The acquisition is being concluded via two of its wholly-owned units, KNM International Sdn Bhd and KNM Process Systems Sdn Bhd, taking over the equity from three individuals — Joao Ronaldo Pereira, Jose Maria Vieira de Novaes and Rozimiro Ferreira Lopes.
The three companies specialise in areas such as fabrication of steel structures, pressure vessels and stainless steel plates for engineering, procurement and construction contracts, and assembly, erection and maintenance of industrial plants.
“The proposed acquisition will allow KNM to enhance its presence through the design and manufacturing of process equipment for the oil, gas, petrochemicals and minerals mining industries, and enables KNM to have immediate manufacturing capacity in Brazil, access to clients in the oil, gas, petrochemicals and minerals mining industry and enhance its presence in South America,” KNM said in an announcement.
The acquisition is expected to contribute positively to KNM’s earnings for FY2008. The vendor’s original cost and dates of investment in HZM are not publicly available.
For the first three months of FY2008, KNM posted a 41% jump in net profit to RM54.1 million on the back of a 26% rise in revenue to RM331.2 million, compared to a year earlier.
KNM’s shares had been actively traded over the past few days. Yesterday, the stock closed at RM1.55, a gain of nine sen, with 2.3 million shares changing hands.
Overseas ambition
VASTALUX Energy Bhd (VEB), which is en route to a listing, plans to expand its oil and gas-related business in the Philippines, India and Myanmar as well as the Middle East and North African regions from next year.
Its executive director Azman Abd Ghafar said the company is looking at Qatar, Oman and Saudi Arabia in the Middle East and Libya in North Africa.
"We expect our international business to contribute significantly to revenue. It is still too early to see much impact since we just started our overseas business last year.
"Our aim is to become a preferred engineering company for oil and gas and petrochemicals in the region," he told Business Times in an interview.
VEB, incorporated in 1995, has been making inroads into Indonesia and Vietnam.
Its Indonesian subsidiary, PT Vastalux Energy, secured its first job in February this year to instal a gas pipeline for the Greater Jakarta Distribution main line.
In May, it secured another contract to procure steel products and pipes in Indonesia.
In Vietnam, Vastalux Sdn Bhd has entered into a 10-year contract with Swedish MacGregor Oy and Alpha Co Ltd for the fabrication of steel products, specifically hatch covers.
Azman said VEB and Alpha also plan to form a joint-venture company to undertake offshore and onshore oil and gas supporting services, including fabrication operations, hook-up and commissioning, topside maintenance and underwater structural inspection.
VEB hopes to list on the second board of Bursa Malaysia next month. Its prospectus will be launched today.
Its initial public offering (IPO) involves the issuance of 57.23 million new shares, an offer for sale of 26 million shares and a restricted offer of seven million shares.
Azman said the company expects to raise some RM52 million from the IPO, of which 20 per cent will be used for its acquisition of at least two vessels, 40 per cent to repay loans and the rest for working capital.
He said the oil and gas sector still offers great potential, adding that VEB's strong track record of continuous growth holds the promise of good returns for investors.
Azman noted that in terms of revenue, VEB is ranked ninth out of 20 players in Malaysia. It posted RM143.23 million revenue last year.
The company is bidding for contracts worth close to RM750 million in the country, Azman said.
"Of this, 15-20 per cent are onshore jobs and the rest offshore," he added.
VEB's secured order book stands at RM900 million. Forty per cent has been completed, while the balance will last the company until 2010.
Its main customers include Petronas Carigali Sdn Bhd, Murphy Sarawak Oil Co Ltd and Malaysian Refining Co Sdn Bhd.
VEB operates three fabrication yards in Kemaman, Terengganu; Bintulu, Sarawak; and Labuan.
"We are developing our fourth fabrication yard in Teluk Kalong, Terengganu. We are spending some RM6 million on the yard, which is expected to be completed by the middle of next year," Azman said.
Its executive director Azman Abd Ghafar said the company is looking at Qatar, Oman and Saudi Arabia in the Middle East and Libya in North Africa.
"We expect our international business to contribute significantly to revenue. It is still too early to see much impact since we just started our overseas business last year.
"Our aim is to become a preferred engineering company for oil and gas and petrochemicals in the region," he told Business Times in an interview.
VEB, incorporated in 1995, has been making inroads into Indonesia and Vietnam.
Its Indonesian subsidiary, PT Vastalux Energy, secured its first job in February this year to instal a gas pipeline for the Greater Jakarta Distribution main line.
In May, it secured another contract to procure steel products and pipes in Indonesia.
In Vietnam, Vastalux Sdn Bhd has entered into a 10-year contract with Swedish MacGregor Oy and Alpha Co Ltd for the fabrication of steel products, specifically hatch covers.
Azman said VEB and Alpha also plan to form a joint-venture company to undertake offshore and onshore oil and gas supporting services, including fabrication operations, hook-up and commissioning, topside maintenance and underwater structural inspection.
VEB hopes to list on the second board of Bursa Malaysia next month. Its prospectus will be launched today.
Its initial public offering (IPO) involves the issuance of 57.23 million new shares, an offer for sale of 26 million shares and a restricted offer of seven million shares.
Azman said the company expects to raise some RM52 million from the IPO, of which 20 per cent will be used for its acquisition of at least two vessels, 40 per cent to repay loans and the rest for working capital.
He said the oil and gas sector still offers great potential, adding that VEB's strong track record of continuous growth holds the promise of good returns for investors.
Azman noted that in terms of revenue, VEB is ranked ninth out of 20 players in Malaysia. It posted RM143.23 million revenue last year.
The company is bidding for contracts worth close to RM750 million in the country, Azman said.
"Of this, 15-20 per cent are onshore jobs and the rest offshore," he added.
VEB's secured order book stands at RM900 million. Forty per cent has been completed, while the balance will last the company until 2010.
Its main customers include Petronas Carigali Sdn Bhd, Murphy Sarawak Oil Co Ltd and Malaysian Refining Co Sdn Bhd.
VEB operates three fabrication yards in Kemaman, Terengganu; Bintulu, Sarawak; and Labuan.
"We are developing our fourth fabrication yard in Teluk Kalong, Terengganu. We are spending some RM6 million on the yard, which is expected to be completed by the middle of next year," Azman said.
Thursday, 21 August 2008
Tanjung Offshore lands RM50m job from Murphy
Tanjung Offshore Bhd has secured a RM50 million contract to provide operations and maintenance support services for Murphy Sarawak Oil Ltd's oil and gas production operations in the country over a four-year period from August 2008.
The contract, awarded to its subsidiary Tanjung Offshore Services Sdn Bhd on Aug 14, would contribute positively to Tanjung's earnings and net assets for the financial years ending Dec 31, 2008 to 2012, the company told Bursa Malaysia yesterday.
The contract, awarded to its subsidiary Tanjung Offshore Services Sdn Bhd on Aug 14, would contribute positively to Tanjung's earnings and net assets for the financial years ending Dec 31, 2008 to 2012, the company told Bursa Malaysia yesterday.
Thursday, 7 August 2008
KNM bags RM463m worth of orders
KNM Group Bhd has secured overseas and local oil and gas-related orders totalling RM463 million from international clients.
In a statement yesterday, KNM said its wholly-owned subsidiary KNM Process Systems Sdn Bhd and its indirect wholly-owned subsidiaries FBM Hudson Italiana SpA and HEA Australia Pty Ltd had secured orders from Canada, New Caledonia, Algeria, Portugal, the United Arab Emirates, Egypt and Australia.
Those orders include providing refrigeration/demethanisers/deethanisers for the Skikda New LNG project in Algeria, plate heat exchangers for the Tangga Barat Cluster Development project from Petronas Carigali Sdn Bhd and plates for precipitation tanks for the Worsley Efficiency and Growth project in Australia.
It added that the orders from Canada such as the modularisation of DSU heaters and FSU settlers and high-pressure slop drums were the first projects to be undertaken at its new manufacturing plant in Tofield, Alberta in Canada.
KNM said the orders were expected to contribute positively to its earnings and net tangible assets for the financial years ending Dec 31, 2008 and 2009.
Source : The Edge
In a statement yesterday, KNM said its wholly-owned subsidiary KNM Process Systems Sdn Bhd and its indirect wholly-owned subsidiaries FBM Hudson Italiana SpA and HEA Australia Pty Ltd had secured orders from Canada, New Caledonia, Algeria, Portugal, the United Arab Emirates, Egypt and Australia.
Those orders include providing refrigeration/demethanisers/deethanisers for the Skikda New LNG project in Algeria, plate heat exchangers for the Tangga Barat Cluster Development project from Petronas Carigali Sdn Bhd and plates for precipitation tanks for the Worsley Efficiency and Growth project in Australia.
It added that the orders from Canada such as the modularisation of DSU heaters and FSU settlers and high-pressure slop drums were the first projects to be undertaken at its new manufacturing plant in Tofield, Alberta in Canada.
KNM said the orders were expected to contribute positively to its earnings and net tangible assets for the financial years ending Dec 31, 2008 and 2009.
Source : The Edge
Tuesday, 5 August 2008
New shareholders control 20% of Kejuruteraan Samudra Timur
A group of new shareholders at oil and gas company Kejuruteraan Samudra Timur Bhd (KSTB) has amassed about 20% equity in the company, shareholding changes to Bursa Malaysia show.
The new group, linked to security company Safeguards Corp Bhd, control vehicles such as Virtual Sphere Sdn Bhd, Trance Equity Sdn Bhd and Central Portfolio Sdn Bhd, which collectively have about 20% equity in KSTB.
Privately held Virtual Sphere has 7.9% equity in KSTB. Virtual Sphere’s shareholders are Green Bondage Sdn Bhd, Wong Chiew Har and Lee Fong Chor.
Green Bondage has 80% equity in Virtual Sphere. Green Bondage’s shareholders include Lisa Khong May May and Lee Fong Chor, while its board includes Leong Chee Keong, who was appointed to KSTB’s board in November last year. Leong is also the chief executive of haulage and transportation company Safeguards Oceanic Holdings Sdn Bhd, in which Safeguards has 60% equity.
Virtual Sphere made an announcement of its substantial shareholding at the end of July, as did another company, Trance Equity, which announced a substantial stake of 7.2% in KSTB.
Trance Equity’s shareholders are once again Khong and Lee and one Mohd Yusuf Nurin. Mohd Yusuf was also a director of Safeguards.
According to KSTB’s annual report, another company, Central Portfolio Sdn Bhd has about 4.9% equity in KSTB.
Source : The Edge
The new group, linked to security company Safeguards Corp Bhd, control vehicles such as Virtual Sphere Sdn Bhd, Trance Equity Sdn Bhd and Central Portfolio Sdn Bhd, which collectively have about 20% equity in KSTB.
Privately held Virtual Sphere has 7.9% equity in KSTB. Virtual Sphere’s shareholders are Green Bondage Sdn Bhd, Wong Chiew Har and Lee Fong Chor.
Green Bondage has 80% equity in Virtual Sphere. Green Bondage’s shareholders include Lisa Khong May May and Lee Fong Chor, while its board includes Leong Chee Keong, who was appointed to KSTB’s board in November last year. Leong is also the chief executive of haulage and transportation company Safeguards Oceanic Holdings Sdn Bhd, in which Safeguards has 60% equity.
Virtual Sphere made an announcement of its substantial shareholding at the end of July, as did another company, Trance Equity, which announced a substantial stake of 7.2% in KSTB.
Trance Equity’s shareholders are once again Khong and Lee and one Mohd Yusuf Nurin. Mohd Yusuf was also a director of Safeguards.
According to KSTB’s annual report, another company, Central Portfolio Sdn Bhd has about 4.9% equity in KSTB.
Source : The Edge
Monday, 4 August 2008
Petronas unit buys more African assets
The acquisition of Shell's downstream business in Lesotho and Zimbabwe by Engen will provide it with an additional 200 million litres of refined petroleum products a year, says an Engen spokesperson
ENGEN Petroleum Ltd, an 80 per cent unit of Petroliam Nasional Bhd (Petronas), is buying the Royal Dutch Shell's downstream business interests in Lesotho and Zimbabwe, fuelling the South African energy company towards realising its vision to become an African champion by 2016.
Currently, the company operates retail and other commercial downstream businesses in 15 countries, while its parent company, Petronas, has interests in some 13 countries in the African continent.
An Engen spokesperson said the acquisition of Shell's downstream business interests in Lesotho and Zimbabwe will provide the company an additional 200 million litres of refined petroleum products a year, and push up its market share in Lesotho to 35 per cent.
"The Lesotho and Zimbabwean markets will make a significant contribution to Engen's vision of becoming an African champion in downstream business by 2016," the spokesperson told Business Times.
According to a statement posted on Engen's website, the company and Shell signed a sale and purchase agreement early July, but the deal is still subject to regulatory approval from the countries' governments and central banks.
In the case of Zimbabwe, the spokesman said the deal is subject to pre-emptive rights.
A Shell official, who confirmed the sale of the group's business interests in Lesotho and Zimbabwe, said the move is consistent with its global strategy known as "more upstream and profitable downstream".
However, the official said Shell remains committed to its downstream business in Africa and is seeking to focus its portfolio on markets where it can deliver maximum value for customers and shareholders.
For Zimbabwe, the official said, Shell's interests in that country were a non-consolidated joint venture covering 50 per cent of Shell Zimbabwe and 50 per cent of BP Zimbabwe, a 50-50 joint venture operated by BP.
"Shell has licensed its brand to the joint venture, therefore half of the retail network is Shell-branded. This joint venture sells 172 million litres of retail and commercial fuels, lubricants and aviation products, mainly through retail sites," the official said.
Elaborating, Engen's spokesman said its Lesotho operation currently boasts annual volumes of 36 million litres of fuel through seven retail sites, and via commercial and lubricant arrangements, for just under 21 per cent of the market.
"Engen already has interests in Lesotho, and the acquisition will see it secure 35 per cent of the market," the spokesman said.
In the case of Zimbabwe, the spokesman said Shell's Zimbabwe business, run in a joint venture with BP as the manager, sells 172 million litres of retail and commercial fuels, lubricants and aviation products, through 226 retail sites and other arrangements.
"While Zimbabwe's economy has declined sharply over the last decade, it still has good infrastructure which could form the basis of renewed economic growth, once the political crisis is resolved," the spokesman said.
The spokesman explained that under the proposed acquisition, Engen's Zimbabwe holding will be in a 50-50 joint-partnership form.
Besides Petronas' share, the remaining 20 per cent stake in Engen is held by Worldwide African Investment Holdings (Pty) Ltd.
Petronas' interest in Engen encompasses a refinery in Durban and more than 1,300 service stations across Africa.
Source : Business Times
ENGEN Petroleum Ltd, an 80 per cent unit of Petroliam Nasional Bhd (Petronas), is buying the Royal Dutch Shell's downstream business interests in Lesotho and Zimbabwe, fuelling the South African energy company towards realising its vision to become an African champion by 2016.
Currently, the company operates retail and other commercial downstream businesses in 15 countries, while its parent company, Petronas, has interests in some 13 countries in the African continent.
An Engen spokesperson said the acquisition of Shell's downstream business interests in Lesotho and Zimbabwe will provide the company an additional 200 million litres of refined petroleum products a year, and push up its market share in Lesotho to 35 per cent.
"The Lesotho and Zimbabwean markets will make a significant contribution to Engen's vision of becoming an African champion in downstream business by 2016," the spokesperson told Business Times.
According to a statement posted on Engen's website, the company and Shell signed a sale and purchase agreement early July, but the deal is still subject to regulatory approval from the countries' governments and central banks.
In the case of Zimbabwe, the spokesman said the deal is subject to pre-emptive rights.
A Shell official, who confirmed the sale of the group's business interests in Lesotho and Zimbabwe, said the move is consistent with its global strategy known as "more upstream and profitable downstream".
However, the official said Shell remains committed to its downstream business in Africa and is seeking to focus its portfolio on markets where it can deliver maximum value for customers and shareholders.
For Zimbabwe, the official said, Shell's interests in that country were a non-consolidated joint venture covering 50 per cent of Shell Zimbabwe and 50 per cent of BP Zimbabwe, a 50-50 joint venture operated by BP.
"Shell has licensed its brand to the joint venture, therefore half of the retail network is Shell-branded. This joint venture sells 172 million litres of retail and commercial fuels, lubricants and aviation products, mainly through retail sites," the official said.
Elaborating, Engen's spokesman said its Lesotho operation currently boasts annual volumes of 36 million litres of fuel through seven retail sites, and via commercial and lubricant arrangements, for just under 21 per cent of the market.
"Engen already has interests in Lesotho, and the acquisition will see it secure 35 per cent of the market," the spokesman said.
In the case of Zimbabwe, the spokesman said Shell's Zimbabwe business, run in a joint venture with BP as the manager, sells 172 million litres of retail and commercial fuels, lubricants and aviation products, through 226 retail sites and other arrangements.
"While Zimbabwe's economy has declined sharply over the last decade, it still has good infrastructure which could form the basis of renewed economic growth, once the political crisis is resolved," the spokesman said.
The spokesman explained that under the proposed acquisition, Engen's Zimbabwe holding will be in a 50-50 joint-partnership form.
Besides Petronas' share, the remaining 20 per cent stake in Engen is held by Worldwide African Investment Holdings (Pty) Ltd.
Petronas' interest in Engen encompasses a refinery in Durban and more than 1,300 service stations across Africa.
Source : Business Times
UMW to set up O&G fabrication yard in Lumut
UMW Holdings Bhd is acquiring three parcels of leasehold land measuring a total of 24.56 acres in Lumut, Perak, for RM40 million for the development of an oil and gas fabrication yard.
In a statement yesterday, UMW said its JV company UMW Fabritech Sdn Bhd (UFSB) had entered into two separate sale and purchase agreements with Pro-Expert Sdn Bhd for the land.
UFSB, formed between UMW and DKLS Industries Bhd, was set up to undertake the fabrication of oil and gas offshore structures in Malaysia.
UMW said the new construction and fabrication facility in Lumut was expected to further strengthen UMW’s growing reputation as a leading provider of ancillary products and services to the oil and gas industry in the region.
Source : The Edge
In a statement yesterday, UMW said its JV company UMW Fabritech Sdn Bhd (UFSB) had entered into two separate sale and purchase agreements with Pro-Expert Sdn Bhd for the land.
UFSB, formed between UMW and DKLS Industries Bhd, was set up to undertake the fabrication of oil and gas offshore structures in Malaysia.
UMW said the new construction and fabrication facility in Lumut was expected to further strengthen UMW’s growing reputation as a leading provider of ancillary products and services to the oil and gas industry in the region.
Source : The Edge
Sunday, 3 August 2008
Shell developing cutting-edge green technologies
GLOBAL energy company, Shell, is rigorously developing cutting-edge technology to meet increasing challenges in the sector.
Shell Global Solutions, for one is developing innovations to promote efficient use and reduction of carbon emissions around the world.
While the emissions of greenhouse gases may not be totally eradicated but the worst impacts of climate change can be substantially reduced if their levels in the atmosphere can be stabilised at between 450 and 550ppm (parts per million) C02 equivalent.
The current level is 430ppm C02, and it is rising at more than 2ppm each year. Stabilisation at this range would require emissions to be at least 25 per cent below current levels by 2050, and more in the future.
Regional head of Carbon and Energy Management of Asia Pacific Shell Global Solutions, Dr Ir Oscar Piepers said in a recent paper that the group is pursuing several C02 mitigation and technology development activities to improve management of C02 emissions from its hydrocarbon businesses.
Activities include energy efficiency projects, potential large-scale C02 sequestration demonstration projects and alternative fuels.
The International Energy Agency has forecast energy demand to rise by 50 per cent over the first 30 years of this century and believes that most of this increase will be met by hydrocarbons.
The ability to manage C02 is therefore a vital for the future development and growth of businesses.
Piepers said Shell launched an initiative several years ago to improve the energy efficiencies of refineries and chemical plants.
The energy efficiency programme being undertaken at the liquefied natural gas plant in Malaysia is an example.
Malaysia LNG expects an overall LNG production increase of up to one per cent as a result of improvements made with minimal capital expenditure.
Shell Global Solutions' tailored energy-efficiency programme was originally designed for refineries; this was its first implementation at an LNG facility in Malaysia.
The programme can be used across a wide range of industries and is particularly appropriate for energy-intensive businesses.
The energy efficiency programme is helping Shell facilities and plants to cut energy consumption, reduce emissions and is being implemented by clients in the manufacturing and processing industries.
In 2004, the Deer Park chemical complex in Texas, US, reduced its energy consumption by 2.1 per cent to give annual savings of 90,000 tons of associated C02 emissions.
"Typically, we see most savings made in our energy efficiency programmes are through the effective application of successful practices, technology and economics. For example, capturing carbon dioxide means it can be stored (sequestered). This comes at a cost. However, there are novel ways you can recycle carbon dioxide," Piepers said.
For instance, the Shell Pernis refinery in The Netherlands is capturing part of the carbon dioxide it produces and provides it to a third party who then supplies it for horticultural use.
Shell is also developing a number of alternative energy sources, and is the largest distributor of bio-fuels and one of the biggest investors in wind energy, investing in new technology such as second generation biofuels, thin film solar and hydrogen.
Source : Business Times
Shell Global Solutions, for one is developing innovations to promote efficient use and reduction of carbon emissions around the world.
While the emissions of greenhouse gases may not be totally eradicated but the worst impacts of climate change can be substantially reduced if their levels in the atmosphere can be stabilised at between 450 and 550ppm (parts per million) C02 equivalent.
The current level is 430ppm C02, and it is rising at more than 2ppm each year. Stabilisation at this range would require emissions to be at least 25 per cent below current levels by 2050, and more in the future.
Regional head of Carbon and Energy Management of Asia Pacific Shell Global Solutions, Dr Ir Oscar Piepers said in a recent paper that the group is pursuing several C02 mitigation and technology development activities to improve management of C02 emissions from its hydrocarbon businesses.
Activities include energy efficiency projects, potential large-scale C02 sequestration demonstration projects and alternative fuels.
The International Energy Agency has forecast energy demand to rise by 50 per cent over the first 30 years of this century and believes that most of this increase will be met by hydrocarbons.
The ability to manage C02 is therefore a vital for the future development and growth of businesses.
Piepers said Shell launched an initiative several years ago to improve the energy efficiencies of refineries and chemical plants.
The energy efficiency programme being undertaken at the liquefied natural gas plant in Malaysia is an example.
Malaysia LNG expects an overall LNG production increase of up to one per cent as a result of improvements made with minimal capital expenditure.
Shell Global Solutions' tailored energy-efficiency programme was originally designed for refineries; this was its first implementation at an LNG facility in Malaysia.
The programme can be used across a wide range of industries and is particularly appropriate for energy-intensive businesses.
The energy efficiency programme is helping Shell facilities and plants to cut energy consumption, reduce emissions and is being implemented by clients in the manufacturing and processing industries.
In 2004, the Deer Park chemical complex in Texas, US, reduced its energy consumption by 2.1 per cent to give annual savings of 90,000 tons of associated C02 emissions.
"Typically, we see most savings made in our energy efficiency programmes are through the effective application of successful practices, technology and economics. For example, capturing carbon dioxide means it can be stored (sequestered). This comes at a cost. However, there are novel ways you can recycle carbon dioxide," Piepers said.
For instance, the Shell Pernis refinery in The Netherlands is capturing part of the carbon dioxide it produces and provides it to a third party who then supplies it for horticultural use.
Shell is also developing a number of alternative energy sources, and is the largest distributor of bio-fuels and one of the biggest investors in wind energy, investing in new technology such as second generation biofuels, thin film solar and hydrogen.
Source : Business Times
Subscribe to:
Posts (Atom)