Chiyoda Corporation s Challenges on New Business Field

Transcription

1 JOGMEC Techno Forum 2015 Chiyoda Corporation s Challenges on New Business Field Offshore & Upstream Business Hydrogen Business 28 October, 2015 Representative Director & Senior Executive Vice President Offshore & Upstream Project Operations Keiichi Nakagaki All Rights Reserved. CHIYODA 2015

2 INDEX 1. About Chiyoda Corporation 2. Our Challenge on Offshore & Upstream Business 3. Our Challenge on Hydrogen Business 1

3 1. About Chiyoda Corporation

4 1.1 Our Global Track Record Key Figures (FY2014) Revenues New Orders Backlog 6% 7% 5% 8% 9% 6% 2% 12%2% 22% 54% 7% 74% 78% 8% 4.0 Billion USD 6.2 Billion USD 11.8 Billion USD LNG Other Gas Related Petroleum and Petrochemical Fine Industries Others As of March 2015 Exchange rate: JPY120/$ World s No.1 LNG Contractor Involved in over 40% of LNG projects over the decade Executed 19 LNG receiving terminals Courtesy of Qatargas Operating Company Limited Over 800 refining units constructed 3

5 1.2 Our Values Safety is our Core Value million man-hours without Lost Time Injury in Papua New Guinea LNG Project Reliability No.1 EPC Company 68 years of projects experience in over 60 countries Timely Delivery of plants High Plant Availability Courtesy of Qatargas Operating Company Limited 4

6 1.3 Brief History & Mid-term Plan Chiyoda has always been at the forefront of various challenges (inclusive of upscaling of plant capacities) of the global energy industry, and has successfully been providing the optimum solutions. 1st Growth Period (1948 thru 1970 s) Established its business basis as a chemical engineering and construction company with Japan's postwar industrial development Grew with the middle east economic boom Provided solutions to environmental protection 1st Transition Period (1980's) Diversified its business to include general industries Expanded its business in overseas 2nd Growth Period (1990's) Grew with the Asian economic boom 2nd Transition Period (2000's) Shifted its business focus toward LNG Accelerated its globalization 3rd Growth Period (2010's) Diversifying its business while maintaining the position as world s No.1 LNG contractor Mid-term Plan (2013 thru 2016) Diversifying Business Model Diversify business model to include investment on projects and commercialization of proprietary technologies. Accelerating Global Operation From centralized project operation in Japan to decentralized operation in regional headquarters. Current Business Domain Expanding Business Field Expand business fields to include other business opportunities such as offshore & upstream, energy & social infrastructure. Expand business areas as well. 5

7 1.4 Our Business Portfolio Offshore & Upstream Downstream & Non hydrocarbon Infrastructure Advanced Solutions & Life Science Consulting Service Subsea Engineering Offshore/Subsea EPCI [December 2015 ~ ] Gas & LNG Gas processing Liquefaction Petroleum Refineries Petrochemicals Chemicals Metal & Mining Regasification Photovoltaic Power Advanced Process Engineering Concentrating Solar Power Plant Diagnosis (CSP) Asset Performance Consulting Wind Power Life Science Hydrogen Supply Chain Pharmaceuticals Transport Tissue Engineering (ips cells) General Industries Space Engineering Environmental Projects Advanced Materials Electronic Materials 6

8 2. Our Challenge on Offshore & Upstream Business

9 Subsea 2.5 Major Players in Offshore Development Item Overseas Players Japanese Players Subsea Engineering Subsea Equipment Riser / Flowline / Umbilical Platform / Floater Pipeline Genesis (Technip Gr.) JP Kenny (Wood Gr.) Intecsea (Worley Parson Gr.) FMC Technology, One Subsea, Aker Solution, GE Oil&Gas Technip, GE Oil&Gas, Deepflex, NKT Flexible, Prysmian, One Subsea, Nexans, OCC <Operation> SBM, BW Offshore, Technip <Hull Design/Construction> Daewoo Shipbuilding & Marine Engineering (DSME), Samsung Heavy Industries, Hyundai Heavy Industries, Yantai, Keepel FELS (jack-up rig), Atlantia SeaStar (design), Aker (design) <Pipe> Europipe, Arcelor Mittal, Tenaris, etc. <Installation> J.Ray McDermott, Subsea7, Saipem etc. Xodus (Chiyoda) Xodus Subsea (Chiyoda) No specific company Furukawa Electric (Past delivery records of flexible riser and flowline) <Operation> MODEC <Hull Design/Construction> Shipbuilding and heavy industry companies (Past records) <Topside Design/Construction> Chiyoda, JGC, TEC <Topside Equipment> Hitachi, MHI (Compressor), Yokogawa Electric Corp. (Control System) <Anchorage> Hamanaka Chain, Tokyo Rope Mfg. <Pipe> Nippon Steel & Sumitomo Metal Corp., JFE Steel Corp.,. <Installation> Nippon Steel & Sumikin Engineering Source: Japan Oil, Gas and Metals National Corporation (JOGMEC) 12

10 2.6 Chiyoda s Offshore & Upstream Basic Strategy Chiyoda announced, in its Medium-Term Management Plan in 2013, that it would put a priority on the expansion of its business fields to offshore and upstream projects as one of its growth strategies. In line with this strategy, Chiyoda has been establishing an organization to provide a wide range of services including planning, engineering, procurement, construction and installation (EPCI), as well as operation & maintenance service relating to subsea oil and gas field development projects for our valued clients. July 1, 2013 July 4, 2013 October 9, 2014 September 29, 2015 : Offshore & Upstream Division was established. : Strategic Capital Alliance with Xodus was announced. (It is the 1st step to execute the above mission) : Xodus Subsea was established. : Chiyoda and Ezra Holding Ltd. signed Share Sale & Subscription Agreement to establish EMAS CHIYODA Subsea (based on Memorandum of Understanding signed on August 27, 2015) Background: The worldwide oil and gas development has gradually shifted towards offshore and deep sea. Offshore oil & gas development in such difficult and distant locations require extensive project management and engineering capability. Japanese Government is promoting the development of offshore energy and mineral resources, and encouraging Japanese industries to expand offshore field development with global competitiveness in their Basic Act on Ocean Policy approved by the Cabinet meeting in April

11 2.7 Chiyoda s Offshore & Upstream Business Strategy Seamless subsea development from concept to execution and Life-of-Field Concept Pre-FEED FEED EPCIC Integrated Execution Life-of-Field IMR/Subsea Intervention Acquisition of working interest / Exploration Appraisal / Assessment (FS/Pre-CS) Development Planning (Select) (CS/Pre-FEED) Development (Define) (FEED) Development (Execute) (EPCIC) Production / Operation / Decommissioning Study basis data review Geological and Geophysical Support Subsurface estimation and wells support Opportunity Framing Feasibility and identification studies Risk and economic evaluations Environmental impact assessment Service by Xodus Group Ltd Service by Xodus Subsea Ltd Reservoir simulation Production planning Concept selection and pre-definition studies Service by EMAS CHIYODA Subsea FEED Subsea FEED Project Management Engineering Procurement Flexible risers and flowlines Rigid pipeline welding / spooling Umbilicals Subsea Equipment Installation Flexible-lay Umbilical-lay Rigid Reel-lay Rigid S-lay Heavy-lift for subsea infrastructure Offshore topside installation Support, Diving & Logistics Commissioning Life-of-Field engineering - Operational support -EOR - Inspection, Maintenance and Repair (IMR) - Decommissioning Life-of-Field execution - Inspection, Maintenance and Repair (IMR) - Subsea intervention - Decommissioning 14

12 2.8 Outline of EMAS CHIYODA Subsea 1) Company Name : EMAS CHIYODA Subsea (HQ in UK) 2) Shareholders : Ezra Holdings Limited (50%) / Chiyoda Corp (50%) 3) Services : Engineering, Procurement, Construction, Installation, Commissioning (EPCIC) business for Offshore & Subsea 4) Number of employees : Approx ) Key location : Singapore, Norway, Houston. 6) Number of owned vessel : 9 vessels 7) Revenue : Approx. 1 billion US$ (2015) 8) Establishment of Company : December 2015 EMAS CHIYODA Subsea 15

13 2.9 Lewek Constellation a state-of-the-art vessel EMAS CHIYODA Subsea will own and operate 2 technically advanced Reel Lay vessels. Lewek Constellation is the latest addition to our world-class fleet of pipelay and construction vessels. Key Features Versatile one stop shop with multi-lay system which provides reel lay and flexlay capability and 3,000mT heavy lift Game changing capability for operations in ultra-deep water, remote regions and harsh operating environments Only one of 2 vessels in the industry with mobile spool base and with liftable reels which provides increased efficiency and flexibility Source: EMAS AMC 16

14 3. Our Challenge on Hydrogen Business

15 3.1 Hydrogen Energy Role Sustainable growing Energy Security Fossil resource limitation Economics H 2 Environment Safe energy system Safety Carbon emission Climate change H 2 energy can play a significant Role for 3E+S, since H 2 can be produced from all kinds of primary energy (coal, gas, renewable energy, etc.). The Japanese government issued - a new Strategic Energy Plan in April 2014, in which Hydrogen H 2 energy requires a large scale storage and transport technology with a strong emphasis was on identified safety. Chiyoda as an has important established energy a new technology source. that we call the SPERA H 2 system. Our vision is that this new system will be the first step on the path -a to a H sustainable 2 and Fuel energy Cells society. Road Map in June

16 3.2 Hydrogen Supply Chain Concept by SPERA H 2 System First step : fossil resource CO2 Hydrocarbon Gas EOR Energy Power Gen. Mobility CCS Coal Gasification Oil MCH (Methylcyclohexane) H2 Supply Electrolysis Final goal CH3 TOL Hydrogenation plant +3H2 CH3 MCH Renewable Energy Dehydrogenation plant CH3 CH3 Storage tanks Storage tanks +3H2 Toluene MCH TO L H2 Demand Feedstock Petro Refining Chemicals 20

17 3.3 Development of SPERA H 2 System Technology New dehydrogenation catalyst and process development established SPERA H 2 system technology. H 2 50Nm 3 /h Dehydrogenation Section Hydrogenation Section Product TOL Feed MCH Product MCH Feed TOL MCH Tank MCH Tank TOL Tank TOL Tank Process Plants (50Nm 3 -H 2 /h) Tank Area (1 week capacity) Demonstration plant at Chiyoda R&D Center, Yokohama, Japan (Note) MCH: Methylcyclohexane TOL: Toluene 21

18 3.4 Current Activities Chiyoda is performing following activities on Hydrogen Business. 1. Supply Chain from Oversea to Power Plant in Japan Hydrogen procured from overseas will be supplied to power plants in Japan via SPERA Technology. An operational demonstration is planned during the Tokyo Olympic and Paralympic Games in This program is supported by NEDO (the funding agent of METI). Overseas Energy sources SPERA Power Station 2. Power to Gas Hydrogen generated by electrolyzer using simulated wind power is converted into MCH in the SPERA process. Demonstration facilities, currently under construction at the Chiyoda R&D Center, will be completed in early This program is funded by NEDO. 3. Dehydrogenation Unit for Fuel Cell The development of a dehydrogenation unit for FCV refueling is planned for operation in 2017.This program is funded by NEDO. SPERA electrolyzer SPERA Compacted Dehydrogenation Unit H 2 (Gas) 22

19 All Rights Reserved. CHIYODA