Tag Archive | "oil"

Dubai’s transformer oil testing laboratory wins international recognition

Yesterday, Dubai Electricity and Water Authority’s (DEWA) Transformer Oil Test laboratory has become the first government laboratory for transformer oil testing in the UAE to achieve the international ISO/IEC 17025 certification.

The ISO/IEC 17025 is a key international certification to measure the efficiency of public laboratories, following the ISO system, a recognised standard in measuring the quality, efficiency, and safety of products and services offered.

The laboratory tests oil used to cool DEWA’s main transformers and to provide electrical insulation between internal live parts. Since this must remain stable at high temperatures and for an extended period, regular checking of the stability and quality of the oil used is important to ensure highest possible levels of safety and security for electricity distribution.

The laboratory conducts over than 24,000 tests annually. Its operations cover all transformers (generation, transmission, and distribution) in the DEWA network, accounting for more than 40,000 units in addition to external transformers for various clients.

“In line with its vision to become a sustainable world class utility, DEWA follows best international standards in safety and regular testing operations. The tests conducted by the laboratory are part of our asset management strategy, to optimise asset performance, value, risk, and to achieve highest levels of reliability of electricity to our customers,” said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.

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Brimming with billions

Black gold and its by-products have always been our region’s strong suit. With greater governmental focus on sustainability, Abdulmohsen Al Majnouni, SAS-AIChE chairman, notes that companies in this multibillion dollar industry have become smaller, energy efficient and cost-effective

The petrochemical industry in the GCC has been vulnerable to financial crisis, as it has consistently seen up and down cycles in recent years. It has been revealed that these cycles follow the refining industry cycles with a six to twelve month lag, however with recent advances in the petrochemical industry, the cyclic effect may not be the case anymore.
“The introduction of specialty or performance chemicals has differentiated the refining from petrochemical industries,” says Al Majnouni. “The more creative manufacturers are in developing new enhanced products, the more sustainable they become. The more efficient the petrochemicals industry becomes, the less susceptible and less prone to financial crisis they are.”
The GPCA reports that the GCC petrochemicals production capacity grew 13.5 per cent last year to nearly 116 billion tonnes, where Saudi Arabia alone was responsible for more than half of the US$100 billion in sales generated by the GCC petrochemical sector.
According to the Kuwait Financial Centre (Markaz), Saudi Arabia tops the list with US$12 billion of projects under execution and another US$41 billion in future projects. Furthermore, petrochemical projects worth US$19 billion are under execution in the GCC providing opportunities in both the long and short terms.
Al Majnouni states: “The major short term opportunities are in more integrated speciality and performance chemicals. These are basically secondary and tertiary industries. This is especially true for the Middle East countries as the supply of cheap feedstock is questionable.”
In the long term, the opportunities will be found in the compounding industries, detergent basics, pharmaceuticals, rubbers and tires, he adds.
Previously, companies operating in the GCC have enjoyed subsidised feedstock and less competition in the petrochemical area, however, now, competition and the availability of feedstock are two factors that demonstrate promise and excitement to the SAS-AIChE chairman.
“Now, not only has the feedstock become scarce and limited, but the entrance of many international companies in the business has made it very competitive. Companies have become smarter, energy efficient, cost effective and more sustainable,” says Al Majnouni.
AIChE was founded in 1908, and 80 years later the Saudi section was born. The company has taken stringent strides on helping Saudi Arabia’s quest to execute its nationalisation strategy and secure the future leaders of the petrochemical sector.
Al Majnouni is confirmed to participate at the seventh annual PETCHEM Arabia summit alongside executives from leading petrochemical players including: Saudi Aramco, SABIC, ORPIC, Chevron Phillips Chemicals, NOGA, EQUATE, TASNEE, QURAIN PETROCHEMICAL and SIPCHEM amongst others which will be held from 30 September to 3 October 2012 in Manama, Bahrain, under the patronage of His Excellency Sheikh Ahmed bin Mohamed Al Khalifa, Minister of Finance, Minister in charge of Oil and Gas Affairs, Chairman, National Oil and Gas Authority (NOGA).

Reserves to decrease
With global oil reserves at an estimated 97 billion barrels, the UAE’s oil fields represent approximately 7% of this figure, while the GCC makes up 45%. This places the UAE in the top 10 within the OPEC, exporting 2.32 million barrels of crude oil per day.
According to Business Monitor International (BMI), UAE oil reserves will decrease by 5.8 billion barrels from 96.8 billion in 2011 to approximately 91 billion barrels by 2016, mainly due to an increase in oil production and exports. By 2016, BMI estimates that oil production will rise to more than 3.2million barrels per day (mbpd), increasing to 3.5 by 2021. This increase is accounted for by mature oil field redevelopment and the introduction of enhanced oil recovery (EOR) to maximise current reserves. Similarly, gas reserves are projected to fall from 6 tcm to approximately 5.8 tcm by 2016.

Hike in domestic demand
There has also been a marked hike in domestic use by gulf states, especially in summer when energy consumption spikes. Additionally, various reports state that despite its reserves, natural gas no longer meets domestic energy demand, forcing the region to use the oil reserves for internal use, negatively affecting revenue generation. According to a report released earlier this year by Oliver Wyman, the UAE used an approximate equivalent of 1.478 bpd of oil in 2010 as one of the biggest energy consumer in the region. Energy-efficient technologies and infrastructure could annually save an estimated AED 11bn (US $3bn) in energy costs, assuming constant electricity production costs. These savings can be realised in the residential sector (51%), the commercial sector (38%), and the industrial sector (11%).
“Even a moderate adoption of measures used elsewhere in the world to increase energy efficiency could significantly reduce investment needs for energy infrastructure, slow the pace of energy consumption growth, free-up oil for export and help mitigate pollution and the region’s carbon footprint,” the Wyman report states.

Real world efficiency
The nation’s oil-rich capital hold one-third of the region’s top largest oil and gas projects, including the recently completed 400km-long Habshan-Fujairah pipeline.  The pipeline was set up to pipe oil from Fujairah to Abu Dhabi for export designed to carry up to 1.8 million bpd.
Al Gharbia’s AED 37bn (US $10bn) Shah sour gas field is set for completion in 2014, producing up to one billion cubic feet of natural gas condensate and natural gas liquids (NGLs) per day.
The GCC petrochemical capacity is estimated to increase from 77.3 million tonnes per annum (MTPA) to 113 MTPA at the end of 2015 according to the Gulf Petrochemical & Chemicals Association (GPCA), with both long and short term opportunities

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Current Issue October 2013