Oil and gas refineries need MRO services
The increasing demand for processed fuels has placed maintenance repair overhaul (MRO) services under the spotlight. At the same time, the spiraling costs of MRO resources are constricting the margins of its service providers. China, India, Brazil and the Middle East are expected to be MRO hotspots as their refinery capacities are expanding in line with their ambition to become regional refinery hubs.
Recent analysis from Frost & Sullivan (http://www.energy.frost.com), Global Oil & Gas Refinery MRO Services Market, finds that global refinery turnaround maintenance services earned revenue of $2.30 billion in 2012. This is expected to grow at a compound annual growth rate of 3.3 percent to reach $2.71 billion in 2017 due to increasing refinery capacity and complexity.
“China, India, and Japan are expected to be the fastest growing markets in Asia,” said Frost & Sullivan Energy and Environmental Research Analyst Ashay Abbhi. “Their geographical proximity to oil-producing nations and inexpensive resources make them ideal for refining, consequently boosting the oil and gas refinery MRO services market.”
Apart from the growing demand for fuel and the subsequent capacity expansions, the MRO services market will get a leg up from stringent environmental and quality regulations. Refining is one of the most regulated industries and these rules translate to more MRO dollars. Furthermore, as most of the current refineries are aging, they require higher maintenance, which creates greater opportunities for maintenance service providers.
However, refineries’ dwindling profits are causing them to defer facility maintenance, especially during periods of peak demand or high oil prices. As a result, MRO contractors’ margins too have been shrinking due to the escalating costs of resources and equipment used for turnaround maintenance.
In such a situation, MRO service providers will do well to invest in newer technology that requires low-cost resources. They also need to spread awareness among refiners about losses incurred due to unplanned outage caused by delayed maintenance.
“The increasing demand for maintenance of refineries will open up the market to more companies with core engineering competency,” noted Abbhi. “This environment will foster forward integration by engineering, procurement and construction (EPC) companies into the maintenance services sector.”
Overall, inexpensive, innovative, and time-saving methods of maintenance and emerging regional refinery nerve centres will give a huge boost to the prospects of the global oil & gas refinery MRO services market.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.