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| INDIA: Fuel price deregulation --- A break from the past |
| Wednesday, 28 July 2010 | |
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(EnergyAsia, July 28 2010, Wednesday) --- By Vivek Shankar Mathur, Associate, Energy Security Analysis Inc (ESAI). Summary: The end of price controls on gasoline and diesel (in phases) in India marks a clear break from previous attempts at price deregulation and indicates a renewed emphasis on domestic energy sector reform. In the short-term, this move will benefit private refiners Reliance and Essar, who now have the incentive to supply fuels in India’s domestic market. Winds of change In 2009, India’s oil demand ranked just behind the US, China and Japan. Demand for oil products grew at a robust 6% on average in the last five years. At the same time, India continues to import well over 70% of its demand for crude oil. Although India’s energy requirements certainly reflect the needs of a growing economy, its domestic oil demand has also been encouraged by an inefficient system of fuel subsidies. This system may well be a thing of the past if the Indian government sticks to its recent commitment to end price controls on gasoline and diesel. The policy effectively permits India’s state refiners the freedom to set retail prices. The price of diesel will also be market-determined, but on a slower reform path. Isn’t this the same old song? Indisputably, India’s track record of fuel price deregulation has been poor. There have been instances of oil product decontrol in the past, notably in 2002, when state-owned refiners were permitted to set retail prices twice a month. However, that policy ended in 2003 after a controversial decision by the then Bharatiya Janata Party (BJP) led-government to stop the fortnightly revision of auto fuel prices before the May 2004 elections. Since then (as well as in 2002) all retail price revisions of auto fuels have been determined by oil marketing companies under advice from incumbent governments. The announced plans certainly signal a strong break from the past. There is also a greater degree of political commitment towards energy reform. India’s policy makers are much more serious about tackling India’s yawning fiscal deficit (now estimated to be over 5.5% of India’s GDP), and Prime Minister Manmohan Singh’s coalition government (the UPA) has been slowly taking important steps towards energy price reform in India: In May 2010, for example, the Cabinet issued a price hike for the natural gas produced by ONGC and OIL and brought it to par with the prevailing private market rate of the gas produced and marketed from Reliance’s offshore KG-D6 fields in east India. This was a much needed reform for the public sector’s upstream companies whose marketed gas prices had not been revised since 2002. The momentum for reform also stems from the current coalition government’s increased confidence in its political mandate – it won a second five-year term in office last year, and more recently survived a no-confidence vote (over a proposed increase in fuel prices in this year’s Budget) in Parliament in April 2010. In a worst-case scenario, if there is a roll-back, ESAI believes it will be delayed until 2014—after the next general elections. The need for diesel price deregulation The impact on India’s oil demand at this point in time is limited. Gasoline remains the rich man’s fuel in India, and a moderate price hike will not reduce demand for the product significantly. For oil demand to fall, it is more important to deregulate diesel prices fully—as diesel constitutes the largest piece (almost 40% or 1 million b/d) of India’s oil demand. In contrast, gasoline demand accounts for only 10% (300,000 b/d). India’s diesel demand growth has averaged a healthy 6.6% (60,000 b/d) in the last five years, led by rising demand in transport, agriculture and off-grid power generation. India’s diesel demand is currently forecast to rise to almost 1.5 million b/d by 2015. At these rates of growth, India’s policy makers have certainly taken an important step to move away from subsidising diesel. While diesel price deregulation will remain a more politically sensitive issue than gasoline, we do expect the pace of diesel price deregulation to quicken by the middle of 2011—after some of the UPA government’s coalition allies will have undergone regional and state elections. If diesel prices are fully deregulated, higher prices could make India’s subsidised consumers take efforts at conserving fuel use. Diesel consumption may also be managed more efficiently: a policy currently being discussed is how to divert diesel use more in the rail freight sector than in trucking, for example. Reliance and Essar and the domestic market The immediate impact of this deregulation of gasoline (and eventually diesel) prices will be an increased focus on India’s domestic oil market by private refiners Reliance and Essar. Both refiners have until now focused on external markets because they were not part of the government’s subsidy-sharing mechanism, making it uneconomical for them to sell in the domestic market while state-owned refiners sold subsidised fuels. A more competitive domestic retail market provides both Reliance and Essar the incentive to expand their retail presence and supply gasoline and diesel in India. A nation-wide fuel spec switch to Euro-3 gasoline and diesel (Euro-4 in select cities) this year also means these refiners have an outlet for their clean fuels in the high-growth Indian domestic market. As the phased policy of diesel deregulation becomes clearer, ESAI believes it is likely that these private refiners will export lower volumes of gasoline (and subsequently, diesel) in the coming months—some much needed bullish support for Singapore refining margins. The enhanced presence of Reliance and Essar in the domestic market will also pressure state-owned refiners in the fuel retail sector. They may not necessarily lower refinery utilisations, however. They will utilise their advantage of being more geographically dispersed in the country, and an already-present system of distribution and retail networks. They are also likely to increase fuel sales outside metropolitan areas as well. Investment in the downstream sector In the long-term, ESAI also expects this move to make India’s downstream oil sector more attractive to foreign partners. India’s past attempts at wooing foreign investment in the downstream sector has met with failure–both Kuwait and Saudi Arabia have either pulled out, or have been disinterested in taking stakes in various refinery projects recently. A deregulated market with fuel retailing rights could provide these companies the incentive to access India’s rapidly growing domestic oil market whilst providing additional funding, and secure crude supplies for various downstream projects to their Indian partners. In sum, while India’s road to complete deregulation of auto-fuels is fraught with challenges, the new policy is a clear break from the past. If India’s policy makers remain true to their commitments, ESAI believes this policy could mark the first true step towards a liberalised and transparent domestic oil product market in India. The author is an analyst with Energy Security Analysis (ESAI). He can be contacted at +1781-245-2036 x 27. |
| MARKETS: Oil prices show little momentum for breaking through $80 barrier |
| Monday, 26 July 2010 | |
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(EnergyAsia, July 26 2010, Monday) --- Oil market summary for week of July 19 to 23, by Darrell Delamaide for OilPrice.com. The reaction of markets Friday to the report from European regulators that only seven out of 91 banks subjected to a “stress test” would need to add capital, and only a modest amount slightly under $5 billion, was mixed. Some participants expressed relief that the exercise was over while others were skeptical that the tests had been stressful enough to be meaningful. The euro regained ground against the dollar after a slight dip when the stress test results came out. The benchmark West Texas Intermediate contract settled at $78.98 a barrel on Friday, after surging to $79.30 on Thursday. It finished last week at $76.01 a barrel. Oil prices had been tracking the stock market fairly consistently the past few weeks, so analysts were surprised that oil futures parted ways with stocks. The Dow Jones Industrial Average closed up 102 points Friday, at 10,424.62 points, gaining 3.2% on the week. The threat of disruption of production in the Gulf of Mexico from the advent of a new tropical storm, which should have been bullish for oil prices, also failed to halt the decline on Friday. Weather forecasters predicted Bonnie would not reach hurricane force before making landfall on Sunday. Earlier in the week, an unexpected increase in oil inventories and a gloomy economic forecast from Federal Reserve chairman Ben Bernanke cut short an incipient rally, with prices surging above $78 a barrel on Wednesday before closing below $77. “The economic outlook remains unusually uncertain,” Bernanke said in congressional testimony. The Fed is ready to jump either way, he indicated, depending on whether the economy shows signs of a more robust recovery or a renewed slide into negative growth. |
| SINGAPORE: IBIA certifies first bunker cargo officer course graduates |
| Tuesday, 20 July 2010 | |
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(EnergyAsia, July 20 2010, Tuesday) --- The International Bunker Industry Association (IBIA), the 600-member worldwide bunkering confederation with consultative status at the International Maritime Organisation (IMO), said it concluded its inaugural Bunker Cargo Officer Course in Singapore. Mr Adams said: “IBIA recognises and champions the need to raise the professionalism and competitiveness of the bunkering industry. With the introduction of the competency-based professional training programme, we have taken the first step to enhancing employability and the advancement of graduates’ careers by establishing this industry-recognised qualification.” Simon Neo, executive committee chairman of the IBIA Asia Branch, said: “Our graduates should be very proud to be the first to complete the Bunker Cargo Officers’ Course. IBIA is delighted that it has paved the way for standards of certification in the bunker industry and we hope to develop this programme for other industry professionals in the future. The sky’s the limit.” The programme is a collaboration between the Singapore-based IBIA Asia Branch, maritime education provider Wavelink Maritime International (WMI), and bunker industry stakeholders in consultation with the MPA, with the objective of raising professionalism through recognised industry qualifications. |
| MARKETS: Crude oil tracks stocks upwards to close week above $76 a barrel |
| Monday, 12 July 2010 | |
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(EnergyAsia, July 12 2010, Monday) --- By Darrell Delamaide for Oilprice.com. Crude oil futures finished the week ending Friday July 9 on a positive note, tracking stocks upward after hitting the low for a month earlier in the week. The benchmark West Texas intermediate contract settled Friday at $76.09 a barrel, up 65 cents on the day. On Tuesday, the contract declined for the sixth session in a row, closing at $71.98, its first dip below $72 in a month. The Dow Jones Industrial Average surged above the 10,000-point level again this week, indicating a brighter economic outlook and buoying oil prices. The Dow climbed 511.55 points on the week, or 5.3%, to close Friday at 10,198.03, its strongest weekly increase in a year. A substantial decline in oil inventories, reported on Thursday in a holiday-shortened week, pushed oil prices up nearly 2% on the day. The U.S. Energy Information Administration reported crude inventories down by 5 million barrels, compared with consensus forecasts of a 1.8 million-barrel decline. A string of weekly increases in oil stocks had been weighing on prices. The International Monetary Fund on Thursday revised its forecast for global growth this year upwards, to 4.6% from 4.2%, lending further support to oil prices. The rosier forecast came in spite of the fiscal crisis in Greece that has rocked the euro area and unsettled markets. The IMF said the revision came after “stronger activity” in the first half. The multilateral lending agency left is growth forecast for 2011 unchanged at 4.3%. Still, analysts were waiting for clearer signals about the future direction of the economy, and are looking now to the beginning of corporate earnings season next week. The oil inventory decline was attributed in part to delays in imports because of Hurricane Alex, so some analysts predicted an increase in oil stocks next week as the delayed oil is delivered. Also, a new tropical depression in the Gulf of Mexico that might have nudged oil prices higher with the threat of further disruption to production and shipping failed to develop into tropical storm Bonnie and hit the coast at the Mexican-Texas border, bypassing offshore platforms. |
| UAE: Lamprell orders Wartsila power system for wind turbine installation vessel |
| Wednesday, 07 July 2010 | |
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Christopher Heidenreich-Andersen, the technical manager of Fred Olsen Windcarrier AS, said: “Wartsila will provide us with state-of-the-art diesel electric machinery, which will give us excellent operational flexibility and reliability, as well as lower emissions and reduced fuel consumption. We look forward to introducing this technology to the offshore wind industry.” Lamprell’s project manager, Darren MacDonald, said “Wartsila meets all the requirements concerning the delivery strategy, and furthermore is aligned to our philosophy of not compromising on quality. We are confident in the company's technology and capabilities to deliver environmentally efficient equipment on time, which fully supports our aim of setting new benchmarks for the quality and capability of vessels in this industry.” Fred Olsen Windcarrier AS was established two years ago to meet the rising demand for offshore WTIVs and other related marine service vessels. All three parties have worked closely to develop the vessel’s capability to efficiently carry out this work in the challenging conditions of the North Sea. As a provider of complete ship power solutions, Wartsila said it was able to optimise both the technical performance of the onboard equipment, and the overall operating costs of the vessel. Wartsila said the vessel’s engine configuration is based on its fuel-efficient medium speed engines. The scope of supply includes one 6-cylinder, two 9-cylinder and one 12-cylinder generating sets based on the Wärtsilä 32 engine, the bow thrusters, the power drive, and the automation systems. The European Wind Energy Association expects energy production from offshore wind resources to rise sharply. Wartsila said: “To meet increasing energy demands and reduce carbon dioxide emissions, as many as 20,000 offshore wind turbines are expected to be erected over the coming decade. From 2020 to 2030, a further 40,000 windmills are likely to be installed making for a cumulative power generating capacity of 150.000 MW. This growth will in turn increase the expected demand for WTIVs.” Arthur Boogaard, Wartsila’s general manager for special segment sales, said: “The mechanical configuration of the ship has to take into consideration the vessel’s operational properties, and all the power requirements of the considerable amount of equipment onboard. We also had to provide the most efficient solution in terms of fuel consumption and exhaust emissions. “Our Ship Machinery Comparison and Optimization programme (ShipMaC) enables us to calculate both the capital and operational costs of each part of the system, and to optimise the levels of annual expenditure. This, together with our Operations and Maintenance services, is a prime reason for Wärtsilä being such a valuable long-term partner to its customers." The WTIV will be 131 metres long with a beam of 39 metres, and capable of speeds of up to 12 knots. It will be capable of carrying heavy loads, will be equipped with dynamic positioning technology, and have good manoeuvrability in port. It will be able to transport on deck up to 10 wind turbines, each with rotors of more than 100-metres diameter. On arrival at location, the ship’s four legs are lowered to the sea floor and the vessel elevates itself using a jack-up system to become a stable working platform. The wind turbines are installed using the vessel's 800-tonne crane. |
| ASIA: Region has potential to expand geothermal production and use, says expert |
| Tuesday, 06 July 2010 | |
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(EnergyAsia, July 6 2010, Tuesday) --- The following article was written by Jim Driscoll, a geothermal expert with Victoria, Australia-based Hot Dry Rocks Pty Ltd. He was responding to EnergyAsia’s question on how Asia can exploit its enormous geothermal potential to produce this free and clean source of energy. “Geothermal energy has long been utilised in Asia, from the oldest known spa dated to the 3rd Century BC in China and the ubiquitous hot springs in Japan, through to more recent large-scale electricity generation plants in the Philippines and Indonesia. Recent communications from both these Asian governments indicate a new push to develop geothermal resources. Indonesia’s President Susilo Bambang Yudhoyono proudly proclaimed at the opening ceremony of the World Geothermal Congress in Bali in April that Indonesia would, by 2025, have 9,500 MW of installed geothermal capacity, thus surpassing the US by focussing on new conventional geothermal power stations. The Renewable Energy Law, referred to as the RE Act of 2008, and its Implementing Rules and Regulation were approved by the Philippine government in 2009, and sets a goal for renewable energy-based capacity to be increased by 100% by 2013. A specific geothermal goal is to rapidly increase installed geothermal electricity capacity to 3,131 MW, thus surpassing the US as the number one producer of geothermal energy in the world by 2013. This, along with the high prices for electricity within the Philippines, are the main drivers for the release of ten new geothermal permits earlier this year. HDR is extremely pleased to be the lead technical consultant for two of these permits. Countries throughout the Asia-Pacific region, and around the world, are in the process of increasing their uptake of renewable energy. The main driving forces for these are threefold. Firstly, countries are scrambling to reduce their carbon emissions in light of the threat of climate change. The outcomes from Copenhagen are extremely disappointing in this regard. Secondly, there is a push by nations to diversify their energy sources and to increase their indigenous supplies of electricity. For example, in the past few years there have been ongoing tensions between Russia and Ukraine over natural gas supplies. The most recent escalation occurred in January 2009 when Russia cut all gas supplies to Ukraine. As Ukraine acts as a major transit corridor for Russian gas supplies to Europe—with approximately 80% of Russia’s gas passing through—18 European countries reported major deficiencies or cut-offs in their gas supplies during a particularly harsh European winter. Germany’s emergence in recent years as a bastion of renewable energy generation owes in part to the ongoing energy security issues between Russia and Ukraine. Finally, governments (and consumers) are all too aware of the volatility of the oil price and oil supplies, and the spectre of ‘peak oil’ is always in the background. Negative spin surrounding the cost of renewable energy is frequently brought up by those with vested interests. Whilst it is certainly correct that most renewable energy sources such as wind and solar are currently more expensive than fossil fuels, this will not necessarily be the case once a realistic price is put on carbon emissions. Conventional geothermal plants are already cost competitive with fossil fuels, and only renewable energy resource capable of providing baseload power. In Australia, we are seeing an increasing number of energy utility and petroleum companies become cornerstone investors in geothermal companies. In some cases, geothermal companies have been acquired outright, as in the case of US-based geothermal consultancy GeoThermex, being acquired by the world’s largest petroleum services company, Schlumberger. The investment community is certainly keeping a close watch on the geothermal industry, especially in Australia and Canada whose stock exchanges have historically focussed on natural resource commodities. HDR frequently briefs investment banks and groups on the latest news and status of the industry in Australia. Even in locations with no conventional geothermal reservoirs, but high temperatures, Engineered Geothermal Systems (EGS) technology can be utilised to extract heat. An independent report to estimate costs of geothermal-sourced electricity generation in the Australian context by 2020 was commissioned by the Australian Geothermal Energy Association in 2008. The report by McLennan Magasanik Associates Pty Ltd concluded that the cost will be approximately A$80 per MWh for large-scale EGS and Hot Sedimentary Aquifer plants (>300 MW). This price is predicted to be the lowest cost of all the alternative energy sources, and compares favourably with fossil fuels when a price on carbon is adopted. (US$1=A$1.2). So, in conclusion, the future of geothermal energy in Asia looks bright. Governments are signalling a series intention to set supportive policy, and there are many commercial companies willing to develop the potential. The opening of two EGS power plants in Europe has demonstrated its technical and commercial viability given the right government policy settings, and we can expect the cost-curve of EGS to decline rapidly with the development of further plants. There are currently two EGS electricity power plants operating in Germany (Landau) and France (Soultz-sous-Fôrets), whilst a number of sites in Australia are in the development phase (the most advanced located in South Australia includes Geodynamics’ Innamincka project and Petratherm’s Paralana project). EGS and conventional geothermal are not mutually exclusive, since EGS principles can also be applied to non-productive parts of a conventional geothermal system. Background |
| DUBAI: DEWA completing 62 substations with a capacity of 400 and 132 kV |
| Wednesday, 30 June 2010 | |
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(EnergyAsia, June 30 2010, Wednesday) --- Dubai Electricity & Water Authority (DEWA) said it is building six substations with a power capacity of 400 kV and 56 others with a power capacity of 132 kV this quarter as part of its efforts to develop its transmission and distribution infrastructure in Dubai. Costing up to 10 billion dirhams, the projects are vital to strengthen Dubai’s economy, said Saeed Mohammed Al Tayer, DEWA’s managing director and CEO. (US$1=3.67 dirhams). “DEWA accomplished during last year's 14 major substations of 400 kV and 139 main major substations of 132 KV. These stations constitute the backbone of our transmission network, and enables us to upgrade our production efficiency and operations, thus advancing in the process of sustainable development while introducing the latest technologically advanced projects to increase our energy production. “These stations are equipped with the-state-of-the art technologies to further enhance their reliability and efficiency. These factors will ultimately serve the Dubai’s urban and economic expansion.” |
| SINGAPORE: Speech by Trade and Industry Minister at groundbreaking ceremony of Sembcorp Marine’s new |
| Friday, 25 June 2010 | |
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(EnergyAsia, June 25 2010, Friday) --- The following is an edited version of the speech delivered by Singapore’s Trade and Industry Minister Lim Hng Kiang at the groundbreaking ceremony of Sembcorp Marine’s new integrated shipyard in Tuas on Monday. “Gao Hongfeng, Vice Minister of Transport, People’s Republic of China His Excellency Wei Wei, People’s Republic of China Ambassador to Singapore Mr Goh Geok Ling, chairman of Sembcorp Marine. “The marine and offshore industry has undergone significant transformation since the 1960s when plans were first made to grow a marine industry in Singapore. Today, the industry embraces a wide range of capabilities such as rig-building, ship repair and conversion and specialised vessel construction. It is one of the fastest growing sectors in our economy. The long term prospects for marine and offshore industry remain bright. Singapore continues to be a leading ship repair centre and the top offshore rig builder in the world. We account for as much as 70% of the world’s output of jack-up and semi-submersible rigs as well as floating, production, storage and offloading (or FPSO) vessel conversion. To retain our global share, the sector continues to seek out new markets. Some of our major shipyards have ventured into Brazil, for deepwater offshore projects. Others have secured contracts in South and Southeast Asia. We are also further consolidating our position as an integrated marine and offshore hub. We currently have world class shipyards and companies offering complex oil and gas systems and components, and offshore-related services. Our companies are expanding and undertaking an even wider range of activities, such as manufacturing, headquarter services, training, research and development, engineering, regional distribution, and more. Sembcorp Marine’s new yard will be an important contribution to our integrated marine hub. Much of the marine and offshore industry is clustered around the activities of shipyards, attracting high value system and component repair and aftermarket services. SembCorp Marine contributes nearly 30% of the industry’s manufacturing output in Singapore, and their investment in building capacity will have a strong spin-off effect for the entire industry cluster. Boosting productivity To stay ahead in the global marine and offshore arena, Singapore’s marine and offshore industry also needs to continually improve its competitive edge. Many companies in the sector have made the goal of improving their innovation and productivity levels a top priority. Sembcorp has maximised their operational effectiveness by improving process flow and facility layout, offering higher value products and services, and increasing supply chain efficiency and resource productivity. Sembcorp Marine’s new yard reflects their commitment towards raising productivity levels. The yard will have the latest production technology and processes to achieve faster turnaround time and is designed so that it optimises land use. The government recently set aside S$2 billion for a National Productivity Fund to encourage greater productivity growth across 12 priority sectors, including the marine and offshore sector. I encourage companies in the marine and offshore sector to come forward and tap on these funds. Strengthening R&D capabilities R&D is yet another key driver for the industry’s growth. A number of the world’s largest oil and gas equipment companies and oil field services companies have already set up R&D operations in Singapore, or are in the process of doing so. The government through agencies such as EDB and A*STAR, is also committed to helping our companies grow their R&D capabilities. In April this year, the Singapore Institute of Manufacturing and Technology, a research institute of A*STAR, and Astoria Consulting Pte Ltd, jointly developed an algorithm technology that promises productivity boosts for shipyards by allowing better optimisation of planning and deployment of critical resources. I encourage all sectors of the marine and offshore industry --- classification societies, offshore engineering companies, and equipment manufacturers --- to invest in and strengthen their R&D capabilities. |
| COMPANY: BG Group appoints Finlayson as executive vice president for Europe and Central Asia |
| Thursday, 24 June 2010 | |
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(EnergyAsia, June 24 2010, Thursday) --- UK’s BG Group said it has appointed Chris Finlayson, a petrophysicist and wellsite petroleum engineer, to the position of Executive Vice President for Europe and Central Asia. Frank Chapman, BG Group’s chief executive, said: “Chris brings with him 30 years of technical and commercial experience in the oil and gas industry, which he has gained in a variety of international settings and businesses. I am delighted to welcome him to our company and to BG Group's executive team.” BG Group plc is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. |
| SINGAPORE: Sembcorp Marine begins work on huge integrated shipyard on reclaimed land off Tuas |
| Wednesday, 23 June 2010 | |
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(EnergyAsia, June 23 2010, Wednesday) --- Singapore’s Sembcorp Marine has begun work on building a massive integrated shipyard at the newly reclaimed Tuas View Extension on the western part of the island. Sembcorp Marine said this phase will feature four Very Large Crude Carrier (VLCC) dry docks totalling 1,550,000 deadweight tonnes, a 3,408-metre quay as well as workshops totalling 68,300 sq m for hull and fitting works, a blasting and painting chamber, warehouse and craneage facilities. It will also house a 1,925-sq m health, safety and environment (HSE) centre along with medical clinic facilities, a 2,725-sq m training centre, owners’ offices of 4,125 sq m and a 40,639-sq m multi-storey dormitory for staff. Designed as a centralised and integrated “one-stop solutions” hub for ship repair and conversion, shipbuilding, rig building and offshore engineering and construction, the facility is equipped to serve a wide range of vessels including VLCCs, new generations of mega containerships, LNG carriers and passenger ships as well as meet new regulatory requirements and environmental standards. On Monday (June 21), the company held a ground-breaking ceremony for the project, with Lim Hng Kiang, Singapore’s Minister for Trade and Industry as its guest-of-honour. The event was witnessed by Gao Hongfeng, China’s Vice Minister for Transport, Wei Wei, China’s ambassador to Singapore, Ang Kong Hua, chairman of Sembcorp Industries, senior officials from government agencies Economic Development Board, Ministry of Trade and Industry and Jurong Town Corporation. Sembcorp Marine said the facility harnessed 47 years of its proven expertise and track record in marine and offshore engineering and construction. The state-of-the-art yard is designed to maximise operational synergy, production efficiency and critical mass with optimised docking and berthing facilities, an improved dock and quay ratio, a centralised work-efficient layout, and integrated facilities. Mr Goh Geok Ling, chairman of Sembcorp Marine said: “The ground-breaking of our phase I integrated new yard facility marks a defining moment in our history and a significant leap forward as we forge ahead into our next phase of growth. With its innovative work-efficient design, the state-of-the-art yard development will bolster our home-base capabilities to deliver value-added cost-competitive solutions to our customer partners.” Mr Goh paid tribute to former President and CEO K.K. Tan for his vision and management in leading Sembcorp to realise the project. “The idea of the new yard was first mooted by K.K. Tan and his team more than 10 years ago. It was largely driven by our strategy to differentiate ourselves from competition and to stay relevant to the needs of our customers. I would like to thank Mr K.K. Tan and his team for their tenacity in overcoming the many obstacles to bring about the ground-breaking of this new yard today.” |
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