Industry

Energy sector survey highlights supply chain risks

The majority of energy, oil and gas organisations expect supply chain risk levels to increase over the next 12-24 months. (Image source: Adobe Stock)

The majority of energy, oil and gas organisations expect supply chain risk levels to increase over the next 12-24 months with the ongoing volatility across global energy markets, according to new research from Achilles, a global leader in supply chain risk and performance management

The findings, drawn from 303 global energy, oil and gas respondents within the Achilles Global Supplier Risk and Sustainability Survey, also highlight that visibility across supplier networks remains a key challenge. Only 5% of organisations report full visibility on their extended supplier networks, while 64% report only limited or zero visibility. This suggests that many energy companies are operating without a reliable view of their supply chains, despite increasing compliance requirements and operational pressures.

While most organisations report only minor or occasional supplier-related disruptions over the past two years, a small proportion of respondents reported disruption costs exceeding US$10mn, pointing to the potential for high-impact events across critical supply chains.

The research also highlights the role of regulation and compliance in supply chain strategy. Legislation and regulatory pressure were identified as key drivers of sustainability action, alongside carbon reporting requirements and cost considerations. As companies operate across multiple jurisdictions, maintaining consistent supplier standards and compliance requirements remains a challenge.

At the same time, confidence in supplier readiness varies. Most organisations report being mostly or moderately confident in the accuracy of supplier‑reported information, while only a small minority express very high confidence, indicating potential compliance and operational risk.

The findings also highlight growing interest in artificial intelligence within procurement and supplier risk management. Over two-thirds of organisations report that they are either exploring or piloting AI use cases, with expected benefits including improved efficiency, stronger decision-making and improved supplier data accuracy. However, adoption remains at an early stage.

Adam Whitfield, head of Global Compliance and ESG at Achilles, said, “The energy sector is currently operating in a highly disrupted environment, with supply constraints, geopolitical instability and market volatility placing significant pressure on operations.

“In that context, visibility across supplier networks becomes increasingly important. Our findings show that many organisations still lack full visibility across their extended supply chains, which can limit their ability to respond effectively when disruption occurs.

“Managing risk in this environment requires more than periodic checks. As these pressures continue, strengthening supplier oversight and improving visibility will be critical to maintaining operational resilience and managing risk to ensure issues are identified early and managed effectively.”

Overall, the data points to a gap between increasing supply chain risk and organisations’ ability to monitor and manage it effectively. As energy companies continue to operate across complex supplier networks, improving visibility and strengthening oversight will be critical to maintaining compliance and managing risk.

IEA report highlights impact of Middle East crisis on gas markets

The closure of the Strait of Hormuz removed almost 20% of global LNG supply from the market . (Image source: Adobe Stock)

The IEA’s latest quarterly gas market report shows the extent to which the Middle East crisis is disrupting international natural gas markets and delaying a significant amount of new LNG capacity that had been on track to come online in the second half of this decade

The disruption to shipping through the Strait of Hormuz since the start of March has created unprecedented uncertainty, removing close to 20% of global LNG supply from the market and triggering sharp price increases across key importing regions. In March, natural gas prices in Asia and Europe rose to their highest levels since January 2023, contributing to a contraction in natural gas demand in key LNG importing markets.

Global LNG production declined in March by 8% year-on-year, with a sharp drop in exports from Qatar and the United Arab Emirates only partially offset by higher output from other regions. As the disruptions began to spread through global supply chains, LNG deliveries also fell, with a steeper decline observed in April. The impacts of the supply losses are partly mitigated by the strong increase in non-Qatari LNG supply, including the start-up of new LNG liquefaction plants for which investment decisions were taken several years ag

Natural gas demand has weakened in key importing markets in response to higher prices, milder weather and policy measures aimed at reducing gas consumption. In Europe, natural gas demand declined by around 4% year-on-year in March, largely driven by stronger renewable electricity generation. Several Asian countries are implementing fuel-switching and demand-side measures to limit gas use amid the supply crisis.

Beyond the immediate disruption, the crisis is expected to tighten the markets in the medium term, with damage to LNG trains in Qatar set to reduce projected supply growth and delay the impact of the anticipated global LNG expansion wave by at least two years. The combined effect of short-term supply losses and slower capacity growth could result in a cumulative loss of around 120 billion cubic metres of LNG supply between 2026 and 2030, around 15% of the expected global LNG supply over this period. While new LNG projects in other regions are expected to offset these losses over time, the impact will prolong tight markets through 2026 and 2027.

The report highlights the importance of strengthening global gas supply security through continued investment across the LNG value chain and enhanced international cooperation between producers and consumers. It also notes the advantages that a diversified portfolio of long-term contracts can bring for gas importers in terms of mitigating price volatility in periods of disruption

Sulzer signs procurement agreement with Aramco

The agreement will see Sulzer providing aftermarket support for Aramco’s nationwide pump fleet.

Sulzer has signed a long-term Corporate Procurement Agreement (CPA) with Aramco, for the supply of centrifugal pumps, spare parts, and aftermarket services across Aramco’s global operations

The agreement will see Sulzer providing aftermarket support for Aramco’s nationwide pump fleet, helping to ensure high asset performance across critical upstream, midstream, and downstream operations.

The partnership runs for five years, with an option to extend for an additional three years.

"We are immensely proud to deepen our collaboration with Aramco," said Alex Myers, regional president of India, Middle East & CIS (INMEC) at Sulzer Services division. "This CPA is a testament to our shared vision of excellence. The combination of Sulzer’s 190-years of engineering heritage with Aramco’s global leadership helps us to play an important role in the long-term success of the region’s energy sector."

"We are delighted to advance our collaboration with Sulzer. This CPA helps to strengthen the resiliency of our supply chain, support Aramco’s capital projects, and ensure we maintain the reliability and efficiency of our pump assets across our operations,” said Sulaiman M. Al Rubaian, Aramco senior vice president of Procurement & Supply Chain Management.

Sulzer has expanded its operations in Saudi Arabia to better serve its regional partners. Its Riyadh hub now includes a large-scale manufacturing and service workshop available 24/7 for emergency response, offering advanced capabilities for repairs and refurbishment of all types of pumps, steam turbines, light industrial gas turbines, power turbines, compressors, and blowers. Integrated warehouse facilities enable rapid response and availability of spare parts.

IntrospeXION expands into the Middle East

IntrospeXION will now deliver its behavioural risk and wellbeing consultancy services to clients in the Middle East. (Image source: IntrospeXION)

IntrospeXion, a specialist consultancy firm providing mental health and wellbeing support to offshore and energy workforces, is expanding into the Middle East

The company, led by experienced psychologists and mental health practitioners, will now deliver its behavioural risk and wellbeing consultancy services to clients in the Middle East following the award of new contracts.

Working with regional-specific supply chain and service companies, IntrospeXion will provide a range of support, including on-site mental health hubs and drop-in clinics, audits and assessments, and leadership coaching to top-level energy executives. IntrospeXion will also help new clientele working in complex and demanding environments, such as offshore, to ensure they have direct access to mental health support.

The expansion into the Middle East represents IntrospeXion’s continued growth since first entering the market, demonstrating how companies are increasingly looking to prioritise the wellbeing of their employees to bolster resilience, support teams, and embed psychologically safe practices within safety cultures.

Shabnum Hanif, IntrospeXion’s founder and managing director, commented, “In the energy and offshore industry, HSE and employee wellbeing isn’t limited to the physical risks that they encounter on-site; it's about a holistic approach that encompasses mental health and welfare. When we take care of every risk our people face, we are placing the industry in the best position to push forward. While visiting contacts in the Middle East, it was evident that there was a clear recognition that caring for and investing in people is an integral part of business growth, but that there aren’t always accessible or manageable resources to utilise.

“By moving into the Middle East market, we can provide that resource. Tackling offshore operations and internal mental health policies and frameworks, we are determined to keep demonstrating that wellbeing is not a “nice to have” but rather that it should be ingrained within the operational infrastructure. We are confident that we can help make a difference in the region.”

John Crane facilitates predictive maintenance at Saudi facility

The project is designed to support long-term asset reliability and help operators move from reactive to predictive maintenance strategies. (Image source: John Crane)

John Crane, a global leader in flow control technologies and an innovator in solutions for rotating equipment, has built a complete maintenance data set in Systems, Applications and Products in Data Processing (SAP) for a gas storage facility in Saudi Arabia

The project, designed to support long-term asset reliability and help operators move from reactive to predictive maintenance strategies, was delivered through John Crane’s Reliability Engineering for Maintenance module within the Performance Plus framework, which is designed to enable smarter decision-making based on improved data accuracy and accessibility.

Following a year-long collaboration, the project delivered a structured maintenance database covering more than 58,000 validated assets, more than double the original project scope. To address these challenges of incomplete documentation and missing equipment records, the John Crane team conducted on-site surveys to gather missing data, applied document indexing to structure and validate existing materials, and deployed additional technical expertise to meet the expanded scope and timeline.

This approach enabled the creation of a complete asset hierarchy and the integration of structured maintenance plans, spare parts lists, failure modes, and operating procedures within the SAP environment.

This resulted in a fully populated Computerised Maintenance Management System (CMMS) that improves asset visibility, supports predictive maintenance, ensures uptime, reduces costs, and drives operational excellence. Without this foundational work, asset visibility and lifecycle management would be compromised, increasing the risk of inefficiencies, unplanned downtime and compliance gaps.

With this data foundation in place, the facility is equipped to maintain high levels of reliability and efficiency from day one while supporting future operational scale and performance.

Amjad Alqaqa’a, vice president - Middle East and Africa at John Crane, said: “Establishing accurate asset data and maintenance structures early gives operators the ability to understand their equipment, plan maintenance effectively, and respond quickly when issues arise. John Crane Performance Plus is designed to provide that visibility, enabling them to move from reactive maintenance to a more proactive approach that strengthens reliability and supports long-term operational continuity.”

Sidebar

Magazine menu