Technip hoping to feed off rising demand for oil & gas infrastructure

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Technip Malaysia’s Managing Director Edgar Pushparatnam

Technip is one of the world’s leading companies for project management, engineering and construction tailored to the energy industry.

The French company has had its Asia-Pacific headquarters in Malaysia since 1982 and is taking advantage of the growing regional demand for energy-related infrastructures, focusing on subsea oil & gas as well as onshore & offshore engineering and construction.

In early 2011, Technip joined forces with Daewoo Shipbuilding & Marine Engineering to win a contract for front-end engineering and design for a floating liquefied natural gas (FLNG) unit awarded by Malaysia’s flagship energy company Petronas and its subsidiary, MISC Berhad.

The project, in Malaysian waters, will result in an annual capacity of 1 million tonnes. More significantly, it represents future investment potential.  Petronas has hinted at wider plans to possibly scale up the FLNG project as the company seeks to develop the technology and eventually challenge Shell, which is the regional leader for FLNG production.

Petronas is obligated to export LNG from its Malaysia LNG installation while at the same time trying to avoid a domestic supply shortfall. Hence its strategy of pursuing FLNG production joint ventures, in tandem with more imports, creating possible investment opportunities and tender options for companies such as Technip.

Regional stalwart

The Petronas-MISC contract is the latest in a long line of regional deals Technip has secured, many with Petronas, since moving into Asia, according to Technip Malaysia’s Managing Director Edgar Pushparatnam.

“Technip has a long history in Malaysia and has completed over 2,500 projects in 23 countries, providing technological solutions, engineering services and turnkey contracting expertise in three business segments: Subsea, Offshore and Onshore,” said Mr Pushparatnam.

Its debut regional project was building the first gas terminal in Kerteh for the Duyong project which was Petronas Carigali’s inaugural field development venture. Since then Technip has performed more projects for Petronas in both upstream and downstream sectors.

Early projects in Malaysia included project management consultancy for Phase 1 of Petronas’s refinery in Malacca and EPC contract work for the polyethylene plant in Petronas’ first petrochemical complex in Kerteh.

Mr Pushparatnam said Technip, in the 1990s, performed many conceptual and detailed designs of offshore and onshore projects for Esso and Shell in Malaysia.

In the second quarter of 2011, Technip turned over 1.66 billion euros in revenue, a 12.1 increase on the same period in 2010, which stood at 1,484 billion euros.

Of this, Asia-Pacific revenue totalled 205.1 million euros, an 11.2 per cent increase from the second quarter of 2010.

Asiaflex

In November 2010, Technip inaugurated its Asiaflex Products flexible pipe and umbilical manufacturing plant in Tanjug Langsat Malaysia, the only facility of its kind in the region and a major nod of confidence to the industry in Malaysia. It was a milestone for the company and allows Technip to boost its presence in the Asia-Pacific and Middle Eastern Subsea oil & gas markets.

Technip predicts strong potential for deepwater installations in the region and have relocated its subsea regional office from Perth, Australia to Kuala Lumpur, where it has also set up an R&D centre.
In 2010, Technip invested in an eight per cent stake in MHB, a subsidiary of Petronas’s MISC.

The company has built deepwater facilities in Kikeh, Gumusut Kakap (Sabah) and, in 2011, it was awarded by Chevron the FEED for two Floating Production Units in Gendalo and Gehem, off Indonesia’s East Kalimantan.

In 2009, Technip won a contract from China’s Ningxia Hanas Natural Gas Company for an LNG plant in Yinchuan producing 800,000 tonnes per year, representing a breakthrough into the mid-scale LNG market. Its FLNG initiatives, apart from Petronas, include a consortium with Samsung to construct an FLNG facility for Shell at its Prelude gas field off the northwest coast of Australia.

In terms of refineries, Technip has built the Dung Quat Refinery in the south of Da Nang in central Vietnam, with a capacity of 145,000 bpsd. The company has also completed a refinery extension project for Petronas Penapisal (Terengannu) for its Kerteh Refinery.

Vibrant market

“The oil and gas market in Asia Pacific is vibrant,” said Mr Pushparatnam, who has 28 years’ experience in the oil & gas industry, having started with Petronas Carigali in 1983 before joining Technip six years later.

“The deepwater market is a major growth area for Asia-Pacific. We will secure sufficient business for our flexible pipes manufacturing plant, Asiaflex Products, as well as win reeled rigid pipe-lay contracts for deepwater development projects and establish a pipe-spool base near our Tanjung Langsat plant. Currently, we are involved in deepwater projects in Malaysia and Indonesia and we will also venture into the deepwater market in Australia.”

Technip has operating centres in Australia, China, Indonesia, Thailand, New Zealand, Vietnam and Singapore and one of its priorities is to train local workforces to meet the demands of the oil & gas industry in areas of deepwater, LNG, FLNG and refining.

LNG and FLNG has major potential in the region and Technip is hoping to build more facilities in Malaysia, Indonesia, Brazil and Australia.

“Downstream, more growth and activity is expected in the refining sector,” said Mr Pushparatnam. “A second grassroots refinery is coming up in Vietnam and there are more on the horizon in Malaysia such as the Refinery And Petrochemical Integrated Development (RAPID). We see these three key areas where opportunities are the greatest.”

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Reading Time: 4 minutes

Technip Malaysia’s Managing Director Edgar Pushparatnam

Technip is one of the world’s leading companies for project management, engineering and construction tailored to the energy industry.

Reading Time: 4 minutes

Technip Malaysia’s Managing Director Edgar Pushparatnam

Technip is one of the world’s leading companies for project management, engineering and construction tailored to the energy industry.

The French company has had its Asia-Pacific headquarters in Malaysia since 1982 and is taking advantage of the growing regional demand for energy-related infrastructures, focusing on subsea oil & gas as well as onshore & offshore engineering and construction.

In early 2011, Technip joined forces with Daewoo Shipbuilding & Marine Engineering to win a contract for front-end engineering and design for a floating liquefied natural gas (FLNG) unit awarded by Malaysia’s flagship energy company Petronas and its subsidiary, MISC Berhad.

The project, in Malaysian waters, will result in an annual capacity of 1 million tonnes. More significantly, it represents future investment potential.  Petronas has hinted at wider plans to possibly scale up the FLNG project as the company seeks to develop the technology and eventually challenge Shell, which is the regional leader for FLNG production.

Petronas is obligated to export LNG from its Malaysia LNG installation while at the same time trying to avoid a domestic supply shortfall. Hence its strategy of pursuing FLNG production joint ventures, in tandem with more imports, creating possible investment opportunities and tender options for companies such as Technip.

Regional stalwart

The Petronas-MISC contract is the latest in a long line of regional deals Technip has secured, many with Petronas, since moving into Asia, according to Technip Malaysia’s Managing Director Edgar Pushparatnam.

“Technip has a long history in Malaysia and has completed over 2,500 projects in 23 countries, providing technological solutions, engineering services and turnkey contracting expertise in three business segments: Subsea, Offshore and Onshore,” said Mr Pushparatnam.

Its debut regional project was building the first gas terminal in Kerteh for the Duyong project which was Petronas Carigali’s inaugural field development venture. Since then Technip has performed more projects for Petronas in both upstream and downstream sectors.

Early projects in Malaysia included project management consultancy for Phase 1 of Petronas’s refinery in Malacca and EPC contract work for the polyethylene plant in Petronas’ first petrochemical complex in Kerteh.

Mr Pushparatnam said Technip, in the 1990s, performed many conceptual and detailed designs of offshore and onshore projects for Esso and Shell in Malaysia.

In the second quarter of 2011, Technip turned over 1.66 billion euros in revenue, a 12.1 increase on the same period in 2010, which stood at 1,484 billion euros.

Of this, Asia-Pacific revenue totalled 205.1 million euros, an 11.2 per cent increase from the second quarter of 2010.

Asiaflex

In November 2010, Technip inaugurated its Asiaflex Products flexible pipe and umbilical manufacturing plant in Tanjug Langsat Malaysia, the only facility of its kind in the region and a major nod of confidence to the industry in Malaysia. It was a milestone for the company and allows Technip to boost its presence in the Asia-Pacific and Middle Eastern Subsea oil & gas markets.

Technip predicts strong potential for deepwater installations in the region and have relocated its subsea regional office from Perth, Australia to Kuala Lumpur, where it has also set up an R&D centre.
In 2010, Technip invested in an eight per cent stake in MHB, a subsidiary of Petronas’s MISC.

The company has built deepwater facilities in Kikeh, Gumusut Kakap (Sabah) and, in 2011, it was awarded by Chevron the FEED for two Floating Production Units in Gendalo and Gehem, off Indonesia’s East Kalimantan.

In 2009, Technip won a contract from China’s Ningxia Hanas Natural Gas Company for an LNG plant in Yinchuan producing 800,000 tonnes per year, representing a breakthrough into the mid-scale LNG market. Its FLNG initiatives, apart from Petronas, include a consortium with Samsung to construct an FLNG facility for Shell at its Prelude gas field off the northwest coast of Australia.

In terms of refineries, Technip has built the Dung Quat Refinery in the south of Da Nang in central Vietnam, with a capacity of 145,000 bpsd. The company has also completed a refinery extension project for Petronas Penapisal (Terengannu) for its Kerteh Refinery.

Vibrant market

“The oil and gas market in Asia Pacific is vibrant,” said Mr Pushparatnam, who has 28 years’ experience in the oil & gas industry, having started with Petronas Carigali in 1983 before joining Technip six years later.

“The deepwater market is a major growth area for Asia-Pacific. We will secure sufficient business for our flexible pipes manufacturing plant, Asiaflex Products, as well as win reeled rigid pipe-lay contracts for deepwater development projects and establish a pipe-spool base near our Tanjung Langsat plant. Currently, we are involved in deepwater projects in Malaysia and Indonesia and we will also venture into the deepwater market in Australia.”

Technip has operating centres in Australia, China, Indonesia, Thailand, New Zealand, Vietnam and Singapore and one of its priorities is to train local workforces to meet the demands of the oil & gas industry in areas of deepwater, LNG, FLNG and refining.

LNG and FLNG has major potential in the region and Technip is hoping to build more facilities in Malaysia, Indonesia, Brazil and Australia.

“Downstream, more growth and activity is expected in the refining sector,” said Mr Pushparatnam. “A second grassroots refinery is coming up in Vietnam and there are more on the horizon in Malaysia such as the Refinery And Petrochemical Integrated Development (RAPID). We see these three key areas where opportunities are the greatest.”

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