Industry

Endress+Hauser is now exclusively marketing SICK’s gas analysis and flow measurement technology worldwide. (Image source: Endress+Hauser)

German sensor manufacturer SICK and automation and measurement specialist Endress+Hauser are bringing SICK’s advanced gas analysis and flow measurement technology into Endress+Hauser’s  instrumentation portfolio as part of their strategic partnership in process automation

As of 1 January 2025, Endress+Hauser has been exclusively marketing SICK’s gas analysers and flow meters worldwide. These are used mainly in waste incineration and power plants, steelworks and cement works, in the oil & gas industry, in chemical and petrochemical plants, and in maritime applications. These technologies are crucial for tasks such as emissions monitoring in flue gas cleaning and the measurement of natural gas and hydrogen flows.

The production and further development of the gas analysers and flowmeters were brought together under the umbrella of Endress+Hauser SICK GmbH+Co. KG. SICK and Endress+Hauser will each hold 50% of the joint venture. The company employs around 730 people at several German sites and will collaborate closely with Endress+Hauser’s product centres to drive product innovation and meet evolving market demands.

Co-operation agreement

The two companies siged a cooperation agreement in summer 2024, through which it aims to offer customers in the process industry enhanced support in increasing plant efficiency, protecting the environment and reducing carbon footprint. It will allow customers to access a broader range of products from a single source and benefit from enhanced expertise in gas measurement technology. With its global sales network, Endress+Hauser will access new customers and different application areas.

“This partnership is a perfect match,” said Dr Peter Selders, CEO of the Endress+Hauser Group. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”

“We are pleased that the strategic partnership for process automation is now starting. Together, we can better support customers worldwide and guide them into a sustainable future with leading technological solutions. We are convinced that the transformation of the process industry offers enormous opportunities for growth and development, which we will optimally leverage as strong partners,” said Dr Mats Gökstorp, chairman of the executive board of SICK AG.

Al Masood has been designated the sole agent for Deep International's products and Design-Build-Operate-Maintain (DBOM) projects in the UAE. (Al Masood Group)

Al Masaood Group’s Projects, Engineering and Services Division (PESD) has entered into an agency agreement with Deep International whereby Al Masaood has been designated the sole agent for the solutions provider’s products and Design-Build-Operate-Maintain (DBOM) projects in the UAE

Hani El Tannir, CEO of Al Masaood Group Industrial, said, “[The Group] is committed to providing the best solutions in the energy sector. By partnering with Deep International and leveraging their extensive expertise, we hope to enhance operational efficiency and support the sustainable energy transition in the region.”

Bringing more than 25 years of expertise in delivering fast-track, modular solutions across the Middle East, Africa and Asia region, Deep International’s innovative approach is supported by more than 130,000 HP of gas compressors which ensure reliable, performance-driven solutions tailored to the dynamic market demands.

Chris McMillan, vice president of Deep International, commented, “Partnering with Al Masaood Group marks a pivotal moment for Deep International. Their understanding of regional markets and commitment to excellence aligns perfectly with our mission to deliver safe and reliable gas processing facilities that meet the evolving need of our clients.”

Data centres consume vast amounts of energy. (Image source: Adobe Stock)

The global electricity demand is on an unprecedented upward trajectory, fuelled by the rapid expansion of data centres essential for supporting energy-intensive advanced technologies, including artificial intelligence (AI)

Despite significant investments in alternative energy sources and global climate policies aimed at reducing carbon footprints, the unchecked energy consumption of data centres risks undermining these efforts. And this means the reliance on fossil fuels will continue, as renewable sources do not have the capacity to satisfy this demand.

A recent report by the International Energy Agency (IEA), titled “What the Data Centre and AI Boom Could Mean for the Energy Sector”, underscores the scale of the challenge. Investment in new data centres has surged, particularly in the United States, propelling electricity demand to unprecedented levels. The report predicts that by 2026, the electricity consumption of data centers, cryptocurrencies, and AI systems could reach 1,000 Terawatt Hours (TWh) – a figure comparable to Japan’s annual energy usage – up from the current 460 TWh.

The rapid adoption of advanced technologies looks to outpace the capacity of renewable energy sources to meet latent demand. While the expansion of renewable energy, particularly solar and wind power, has been a central focus of global energy strategies, these sources are not yet sufficient to meet the surging electricity demand from the tech sector. In response, many tech companies, particularly in the United States, are expected to turn to natural gas – a sector experiencing robust growth – as a primary energy source to power their operations. 

At present, many tech companies operate data centres with a capacity of around 40 MW, but the coming years are set to see an acceleration in the size and energy demands of these facilities. By the time these companies begin constructing campuses of 250 MW or more, the energy requirements will be substantial – equivalent to the electricity needs of an entire mid-sized city. As a growing number of campuses of 500 MW or more emerge in the 2030s and 2040s, the demand for gas-generated electricity could surge, following years of national investment in a green transition. This shift could place further strain on global energy systems, especially in regions that are already grappling with the challenges of transitioning to a low-carbon economy.

Significant challenge

The extraordinary rise in electricity demand driven by data centres and AI technologies presents a significant challenge to global energy supply systems. As tech companies continue to expand their operations, the sheer scale of energy required to power these facilities will put immense pressure on existing infrastructure. Current projections suggest that the growing electricity needs of the tech industry could outstrip the capacity of renewable energy sources, particularly in regions where these technologies are rapidly developing. In the absence of effective regulation and investment in new energy solutions, there is a real risk that power shortages, grid instability, and rising energy prices could become commonplace.

For energy supply systems, this rapid rise in demand underscores the necessity for innovation in power generation, distribution, and storage. Power grids must evolve to meet the needs of an increasingly digital world, with greater flexibility and efficiency in handling variable loads from data centers and other large-scale users. Investment in energy infrastructure – both to expand capacity and enhance resilience – will be crucial to ensuring that demand can be met without compromising the reliability of energy services for other sectors.

Ultimately, balancing the growing demand for electricity with the availability of supply will require coordinated efforts across governments, industries, and energy providers. If the increasing energy consumption of data centres and AI technologies is not effectively managed, the resulting strain on the global energy system could have far-reaching consequences, including potential power shortages, rising costs, and challenges in meeting the needs of both the tech sector and the broader economy.

This article is authored by Synergy Consulting

NESR is investing in next-gen advanced drilling technologies. (Image source: Adobe Stock)

Speaking exclusively to Oil Review Middle East, Sherif Foda, chairman and CEO of leading MENA oilfield services company NESR, discusses business prospects

"The MENA region’s energy sector is proving to be highly promising with numerous, albeit different, strength points across countries. We predict that some markets will grow much faster than others, based on their timelines and goals to increase their capacity.

"Kuwait is one example of how much potential the region holds, with the GCC country expected to achieve the highest percentage of growth to work toward ambitious production capacity targets.

"At NESR, we have been specifically focused on maintaining a fully diversified portfolio across more than 15 countries to ensure we are ready to increase service capacity at a very fast pace, based on unique demand drivers such as those in Kuwait, by leveraging our agility and leading MENA footprint to ensure we remain the most focused, customer-centric service provider in our sector.

"Our focus for the foreseeable future is on investing in research and development to enhance our intellectual property, particularly around advanced drilling tools and decarbonisation, which will, in turn, help us reach our goal of doubling the size of the company over the next three to five years.

"Since the company’s foundation, we’ve already quadrupled the size of the business through the establishment of key “anchor countries” and portfolio “pull through” in each of these countries to maximise our segment touch points. When it comes to our next-gen advanced drilling technologies platform ROYA, we are proud to be the first MENA company to organically build its own RSS, MWD and LWD. ROYA is an platform which we recently
launched at the International Petroleum Technology Conference (IPTC) in Saudi Arabia. Since then, I am proud to say we successfully executed multiple jobs in the region after extensive testing in North America."

You can read the full interview in the latest issue of Oil Review Middle East, here