Industry

The opening of the new office. (Image source: KROHNE)

KROHNE, a global leader in measurement technology, is enhancing its presence in the region with the opening of a new office in Expo City Dubai

The state-of-the-art facility will serve as a hub for advanced solution sales and customer-centric services, featuring training facilities and a workshop to house minor repairs for the growing Services team. It will focus on developing cutting-edge technologies that support sustainable industrial practices and will enable the company to strengthen relationships with key partners in the UAE government and the private sector, fostering collaborations across energy, water, and other critical industries.

Chief sales officer Marco Rudelli said, "This location not only enhances our ability to serve our customers but also aligns with our commitment to supporting the UAE's vision for a sustainable future. Expo City is a significant part of our legacy-building efforts, as it positions us at the heart of a vibrant, forward-thinking community. We are excited to deepen our ties with key partners in the UAE government and the private sector across energy, water, and all industries we operate in."

Frank Janssens, vice president of KROHNE Middle East and Africa, added, "Our new office represents a significant investment in the UAE. It allows us to be closer to our customers, understand their needs better, and deliver tailored solutions. We are committed to building a lasting legacy in the UAE, focusing on sustainability and innovation."

The funding is for research that aims to deliver environmental and commercial benefits. (Image source: KAUST)

Aramco has signed a Memorandum of Understanding (MoU) with King Abdullah University of Science and Technology (KAUST) to fund up to US$100mn in research and development projects over the next 10 years

The funding will support a wide range of initiatives, from essential research to applied technologies. Areas of collaboration include energy transition, sustainability, materials transition, upstream technologies and digital solutions, with an emphasis on developing commercially viable outcomes.

Topics identified within the energy transition field include liquids-to-chemicals conversion and future refineries research, as well as low-carbon aviation fuels. Sustainability research will include hydrogen, carbon capture and storage, renewables and energy storage solutions. Additional projects are expected to focus on advanced carbon materials and geothermal energy, among other things.

Deepening the relationship

Amin H. Nasser, Aramco president & CEO, said, “This collaboration will further deepen Aramco’s relationship with KAUST, and we look forward to exploring new possibilities and frontiers with a strong focus on R&D and technology development, reflecting our firm belief in the importance of innovation across industries and applications.”

ATony Chan, KAUST president, said, “The partnership exemplifies KAUST's dedication to fostering impactful research that drives technological advancements and addresses real-world challenges. Our collaboration with Aramco will leverage our combined expertise to develop innovative solutions for a sustainable future."

ADNOC Gas has reported an increase in profits and revenues. (Image source: ADNOC gas)

ADNOC Gas plc and its subsidiaries have recorded an adjusted net income of US$1,190mn for Q2 2024, a 21% year-on-year (y-o-y) improvement

Revenues for the Q2 period of US$6,076mn represent an increase of 13% y-o-y. Within the UAE, increased population and industrial growth have contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.

Highlights of the quarter include the announcement in July that ADNOC Gas will transfer ownership of the US$2.4bn gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. ADNOC Gas will continue to manage and operate the project.

In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais LNG project, following which Mitsui & Co, Shell, bp, and TotalEnergies were announced as equity partners. ADNOC also awarded an EPC contract valued at over US$5.5bn. ADNOC Gas is managing the design and construction and is looking to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake.

Focus on AI, digitalisation and technology

The focus on AI, digitalisation and technology has paid off for the company, with US$1bn in value realised since 2016 as a result, and a further US$2bn expected over the next five years.

Dr. Ahmed Alebri, chief executive officer of ADNOC Gas, said, “Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin. The 21% improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”

The announcement follows healthy revenues and profits recorded at other ADNOC divisions, such as ADNOC Drilling.

Expanding networks are offering big opportunities in the region. (Image source: Adobe Stock)

Expanding pipeline networks in the Middle East are offering fertile opportunities for contractors and technology providers

Data from Global Energy Monitor’s Global Oil Infrastructure Tracker shows the Middle East leading the continuing global expansion of crude oil transmission pipelines, as countries maintain and expanding their production and export facilities. Around 7,073 km of crude oil pipelines are under development (proposed and under construction) in the region, at an estimated capex of US$49.7bn, with Iraq and Iran topping the list.

Data in the Global Gas Infrastructure Tracker shows that 8,169 km of gas pipelines are under development in the Middle East at a cost of US$67.9bn, with Iran and Saudi Arabia leading the ranking. In Iran, new pipelines will help to meet high domestic demand from its industrial petrochemicals and residential sectors, while in Saudi Arabia and other Gulf states gas pipelines will support a shift to gas as a result of energy transition strategies and plans to develop global gas businesses.

Gas pipeline networks

Saudi Arabia’s Jafurah unconventional gas development for example involves a network of around 1,500 km of main transfer pipelines, flowlines and gas gathering pipelines; while contracts have recently been awarded for the Phase 3 expansion of the Master Gas System, which involves the installation of around 4,000 km pipelines. Sinopec and L&T Energy Hydrocarbon (LTEH) are among the beneficiaries, with the LTEH contract reported to be the largest cross-country pipeline EPC project awarded to the company to date.

In the UAE, ADNOC Gas awarded contracts to expand the natural gas pipeline network in 2023, and recently awarded contracts to NMDC Energy P.J. S.C and Galfar Engineering Contracting W.L.L. Emirates for the next phase of the ESTIDAMA project, which will extend the UAE’s natural gas pipeline network operated by ADNOC Gas from approximately 3,200 km to more than 3,500 km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates.

Find out more in the latest issue of Oil Review Middle East, https://oilreviewmiddleeast.com/magazines/orme_2024_07_31/spread/?page=22