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[ariane] 24/1/2018 09:47

Engie Electrabel will invest nearly 100 million in wind turbines

Posted on Wednesday January 24th, 2018 at 09h44 in BRUXELLES (BELGIUM)
Engie Electrabel and its partners will invest, this year, 97 million euros in the construction of new wind turbines in Belgium, said the boss of the company, Philippe Van Troeye. In 2017, some $ 62 million had been invested. Engie Electrabel currently has 306 megawatt (MW) of installed capacity through wind turbines. By 2020, the group hopes to increase to 550 MW, the capacity of a half nuclear power plant. In 2018, the company will commission 17 new wind turbines for 48 MW, including 32 MW in Flanders and 16 in Wallonia. Three parks are also under construction, for an additional capacity of 32.5 MW. (Belga)

[waldron] 23/1/2018 13:15

Kocher says Engie re-positioning is complete
01/23/2018
By Diarmaid Williams
International Digital Editor

Engie chief Isabelle Kocher says the French firm’s concern is now with the scale of growth it can produce after declaring that the business’s ‘repositioning’ is now complete.

Kocher has presided over the transformation of the company away from conventional and nuclear power technology to renewable energy.
Isabelle Kocher
Since 2014, ENGIE has operated a strategic shift, by reducing future exploration in fossil fuels and investing massively in green energies (solar, wind, geothermal, biomass, hydroelectric, and natural gas) and energy efficiency services, and this has accelerated under the guidance of the present chief executive.

“It’s [now] more about the pace of growth,” said Ms Kocher, who took over the group in 2016. “Fundamentally we have done the most important part in terms of repositioning. And we have been extremely clear on the businesses we intend to make a difference on.”

Financial Times reports that as part of her three-year plan that will run to the end of 2018, the company has cut costs, reduced its exposure to carbon-intensive industries and from markets most exposed to fluctuating prices. At the same time, it has increased its exposure to renewable energy, regulated markets and digital technologies.

Since the start of 2016, Engie has sold or closed more than 10 GW out of 16 GW of coal production, brought 6 GW of renewable energy online and secured a further 6 GW. Low-carbon activities now represent more than 90 per cent of earnings before interest, taxation and amortisation, ahead of target, says the company.

As part of its plan, Engie aimed to sell off €15bn of fossil fuel-focused assets between 2016 and 2018 and reinvest the proceeds in renewables and energy services. Following the sales of liquefied natural gas assets to Total for $1.5bn in November and of a coal plant in Australia in December for $800m, 90 per cent of those disposals are now complete

The cash from the disposals has already mostly been spent or committed with the majority going towards internal growth, rather than large acquisitions.

“I have been pushed, to be honest, to make big acquisitions because it was the traditional way,” said Ms Kocher. “It’s not a question of size, it’s more a question of really being able to bring something. The best way to create value is to really bring organic growth.”

The market has also given Ms Kocher and Engie a vote of confidence on the new strategy: since the start of 2017, the share price has risen 19 per cent.

Some analysts have told the FT that 2018 is a critical year, in terms of the success of the strategy.

Vincent Gilles, analyst at Credit Suisse, said: “If this is a bad year, then you can put the blame on her. So far you could put the blame on exogenous factors and former management. This is the first year where you have the majority of assets which have either been brought in or shaped by Ms Kocher.”

“The very important thing is that she has a lot of credit with the market . ;. . a lot of kudos in what she says. That is good and it gives her time, but not infinite time,” he added.

[grupo guitarlumber] 23/1/2018 09:27

(Boursier.com) - Vinci is closely interested in Idex, the third largest French player in energy services and district heating, learned 'Les Echos'. RBC has been mandated by the Cube Infrastructure Fund to dispose of this € 1 billion asset. Vinci would have combined with First State Investments to bid, with the intention of keeping only the services branch. First State would recover the other activities, which it could bring closer to Coriance, bought back in 2016. The newspaper also quotes Cofely (Engie) as possible suitor, as well as the funds Antin, Macquarie and Ardian. In 2017, Idex generated 860 ME of income and 75 ME of Ebitda. The amount evoked thus represents 13.3 times the Ebitda of last year.

[grupo guitarlumber] 22/1/2018 19:11

ENGIE Brand Expands in North America

Ecova, Green Charge, and OpTerra Energy Services Rebrand to ENGIE
January 22, 2018 10:00 AM Eastern Standard Time

HOUSTON--(BUSINESS WIRE)--ENGIE today announced the rebranding of three subsidiaries in North America. The rebrand of Ecova Inc., Green Charge Networks, LLC, and OpTerra Energy Services Inc. is designed to amplify ENGIE’s voice in the North American market and make it clearer for customers and other key stakeholders the range of energy supply and service options that ENGIE provides.

“By uniting these companies under the ENGIE brand, we want to accelerate solutions for customers to best suit the way they want to run their operations”
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While known in North America as a leader in clean energy supplies, whether utility scale or decentralized, ENGIE is taking significant steps to build an even more comprehensive portfolio of energy offerings in North America. Ecova, Green Charge, and OpTerra are key pieces to the ENGIE North America solution set with services to help commercial, industrial, and public sector customers run their facilities more reliably and efficiently with fewer carbon emissions and lower cost. Today, having close to 4,000 employees, ENGIE can provide an array of solutions throughout the U.S. and Canada.

Ecova Inc., now ENGIE Insight Services Inc., provides customers data-driven insight to better manage resources – including energy, waste, water, and telecommunications – and advance sustainability goals. The company is headquartered in Spokane, WA, with offices throughout the U.S.

Green Charge Networks, LLC, now ENGIE Storage Services NA LLC, develops energy storage solutions to help utilities, businesses, municipalities, and schools use electricity more efficiently to reduce costs and carbon. The company is headquartered in Santa Clara, CA.

OpTerra Energy Services Inc., now ENGIE Services U.S. Inc., specializes in building comprehensive energy programs for public sector and commercial and industrial customers, delivering solutions that generate positive financial and sustainability impacts. The company is headquartered in Oakland, CA, with offices throughout the U.S.

“By uniting these companies under the ENGIE brand, we want to accelerate solutions for customers to best suit the way they want to run their operations,” said Frank Demaille, President and CEO of ENGIE North America. “These ENGIE businesses combine performance and sustainability – whether on a stand-alone basis or as a combination. The men and women of these and all of our other businesses work every day to tackle the complex and the detailed to deliver clear, straightforward results for customers and our communities.”

Serving customers ranging from Fortune 500 companies, utilities, federal, state, provincial, and municipal governments, universities, and individuals, ENGIE’s North American business portfolio consists of renewable and natural-gas fired generation, liquefied natural gas (LNG) sale and distribution, retail energy supply; and services, including through these three newly ENGIE-branded entities, to optimize energy use and expense.

About ENGIE in North America
ENGIE manages a range of energy businesses in the United States and Canada, including electricity generation and cogeneration, natural gas and liquefied natural gas (LNG) distribution and sales, retail energy sales, and services to help customers run their facilities more efficiently and optimize energy use and expense.

About ENGIE
ENGIE is committed to taking on the major challenges of the energy revolution, towards a world more decarbonized, decentralized, and digitalized. The Group aims to become the leader of this new energy world by focusing on three key activities for the future: low carbon generation in particular from natural gas and renewable energy, energy infrastructure, and efficient solutions adapted to all its customers (individuals, businesses, territories, etc.). Innovation, digital solutions, and customer satisfaction are the guiding principles of ENGIE’s development. ENGIE is active in around 70 countries, employs 150,000 people worldwide and achieved revenues of €66.6 billion in 2016. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).

Contacts

ENGIE
Julie Vitek, 713-636-1962
[e-mail]

[la forge] 22/1/2018 10:35

Final Destination of Tanker Carrying Russian Gas to US 'Didn't Change' – Engie
CC BY-SA 2.0 / kees torn / LNG tanker Gaselys
Business
09:32 22.01.2018(updated 09:38 22.01.2018) Get short URL
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Late last week, a tanker which was carrying Russian-produced liquefied natural gas (LNG) to the US city of Everett reportedly made a U-turn in Atlantic to head to the Spanish port of Algeciras.

A representative of the French energy company Engie Sputnik that the final destination of a tanker carrying Russian-produced liquefied natural gas (LNG), which was en route from the Isle of Grain terminal in Britain to the US city of Everett, "did not change."

"It is still Everett, but the date of delivery has been adjusted, in particular for weather reasons," the owners of the tanker said.

The statement comes after Bloomberg reported that a tanker which was transporting Russian-produced LNG to Everett was instead heading towards the Spanish port of Algeciras near Gibraltar and should arrive there next week.

READ MORE: First Liquefied Natural Gas Batch From Russia's Yamal LNG Facility Arrives in UK

Earlier, Carol Churchill, the spokesperson for Engie's office in Boston, issued a statement to Sputnik via email that the LNG cargo that Engie Gas & LNG recently purchased was loaded onto a tanker from Engie's fleet at the Isle of Grain facility in the United Kingdom.

"Isle of Grain is a large global import/reexport facility receiving LNG from nearly all exporting countries, and is well situated to serve markets on either side of the Atlantic," Churchill pointed out.

Despite the fact that the tanker is owned by Engie, it is carrying gas produced at the Yamal LNG plant in Russia, according to the Russian business daily Kommersant.

The Russian newspaper Izvestia, for its part, cited Yury Melikhov, a spokesman for Russia's Novatek, which co-owns the Yamal LNG project, as saying that the company sold the gas to a trader and that it is no longer responsible for its transportation.

[the grumpy old men] 18/1/2018 13:04

French Engie Fearless in Face of Nord Stream-2 Sanctions

The French power company Engie will continue to support the project of construction of the Nord Stream-2 gas pipeline despite anti-Russian sanctions, Gérard Mestrallet, Chairman of the Board of Directors of the Engie Group, announced at the Gaidar Forum which ran from January 16 - 18 at the Russian Presidential Academy of National Economy and Public Administration (RANEPA).

“We, as partners in the Northern Stream-2 project, support and will support it under any condition,” he said, noting that despite the law adopted in August 2017 by the US Congress on new sanctions against Russian companies and projects, including Nord Stream-2, Gazprom had concluded an agreement with partners on the project far before the US sanctions law came into force.

“I believe there is no cause for concern,” Mestrallet said.

Engie, the first partners in the construction of the Nord Stream-2 gas pipeline, have started talking about a possible termination of project financing in order to avoid the US sanctions against Russia.

“If sanctions are applied, Engie can stop financing the project in order to avoid sanctions,” Deputy Director General of Engie, Pierre Scharer, told Bloomberg.

For now, the French company continues to comply with its obligations under the project financing agreement for Nord Stream-2 whereby it is to provide 10% of the total investment in the project. However, the US sanctions, if they are specifically applied against Nord Stream-2, may still affect future cash transfers.

Scharer noted that the participants of the Nord Stream-2 project, in cooperation with the European Commission, have found lawyers to protect themselves from the probable US sanctions. The top manager of Engie says it's good that the sanctions law adopted in the United States has no retroactive effect. That is, it will not affect the first Nord Stream.

The US bill on economic sanctions against Russia, Iran and the Democratic People's Republic of Korea (DPRK) was approved by the US Senate in August 2017 and signed by American President Donald Trump. The text of the document directly refers to Nord Stream-2 and requires the US government “to continue to counter the construction of pipeline Nord Stream 2.” It is alleged that the gas main will have "a harmful effect on the energy security of the European Union, the development of the gas market in Central and Eastern Europe, and energy reforms in Ukraine." It is also said that, "the US government should prioritize the export of US energy resources" to the EU, "to create jobs" in its own economy.

As levers of influence, the law provides for sanctions against persons who intend to invest more than $5 million per year or $1 million at a time in the construction of Russian export pipelines. Penalties can be imposed on those who provide such projects with any services or technologies, or even provide information support. The right to decide on imposing sanctions was granted to the US President.

The Nord Stream-2 gas pipeline should double the current Nord Stream (from 55 to 110 billion cubic meters per year), next to which it will be laid from the Baltic coast of Russia to Germany. Construction of the Nord Stream-2 is planned to begin late 2018, and operation to open at the end of 2019. Gazprom's partners in the project are the German Uniper (whose activities include power generation, energy trading, energy storage, wholesale energy sales, and technology services), BASF / Wintershall, the Austrian OMV, Engie and the Anglo-Dutch Shell.

Gazprom and its five partners signed agreements on a new model for financing the project in April 2017. The Russian concern remained the sole shareholder of the project company Nord Stream 2 AG, and Europeans must pay half the total project cost, estimated at EUR 9.5 billion, making the contribution of each foreign partner of Gazprom about EUR 950 million.

Dimitri Dolaberidze

[waldron] 17/1/2018 14:55

Engie and ACWA bid for 800-MW solar project in Morocco

Nation, on the western fringes of the Middle East, is joining a regional push to expand in renewables
Published: 17:41 January 17, 2018
Gulf News
Bloomberg


Abu Dhabi: Morocco attracted bids from France’s Engie SA and EDF Energies Nouvelles to build 800 megawatts of solar power as the North African country seeks to curb energy imports.

The French utilities, as well as Riyadh-based ACWA Power International, led groups bidding last month for engineering, procurement and construction contracts, Obaid Amrane, a member of the Moroccan Agency for Sustainable Energy’s management board, said in an interview.

Morocco, on the western fringes of the Middle East, is joining a regional push to expand in renewables. The country imports almost all its energy and has scant reserves of oil and natural gas, unlike neighbouring Algeria and Egypt. In an effort to cut purchases from abroad, it plans to produce more than 40 per cent of its electricity from renewables by the end of the decade.

The government will award contracts for the solar projects — comprising two 400-megawatt facilities — by the end of this year, and the plants could take two-and-a-half years to build, Amrane said in Abu Dhabi.

ACWA Power confirmed its bid and said it expects to submit a financial proposal by April or May. Engie also confirmed its offer, while EDF Energies Nouvelles declined to comment.

Development banks are likely to provide financing and a bond sale is also an option, according to Amrane. Morocco plans to have 6 gigawatts of installed renewables capacity — including solar, wind and hydropower — by 2020, he said, adding that the country anticipates “a lot of innovation” and lower prices in the battery market as the use of intermittent renewables grows.

[the grumpy old men] 17/1/2018 08:34

PARIS (Agefi-Dow Jones) - Electricity and gas supplier Engie (ENGI.FR) announced Wednesday the acquisition, through its subsidiary Endel Engie, of CEP Industrie from Bureau Veritas (BVI.FR) , for an undisclosed amount.


CEP Industrie specializes in non-destructive testing, mechanical testing and inspections.


This operation will give birth to the French market leader in non-destructive testing, explained Engie in a statement, CEP Industry bringing to its own dedicated subsidiary, CSI, unique technical skills, particularly on thick layers, a technology used in particular in the field nuclear.

[the grumpy old men] 16/1/2018 22:14

Engie chief wants to maintain momentum in 2018
01/16/2018
By Diarmaid Williams
International Digital Editor

The head of Engie wants to use gains made by the company last year to maintain forward momentum in 2018.

Isabelle Kocher said 2018 would be “decisive in terms of accelerating and deepening partnerships”, pointing to Engie’s investments in fuel-cell specialist Symbio FCell, green mobility and solar energy, notably in Africa.
Isabelle Kocher
Engie hopes to boost earnings growth and partnerships in its core businesses of renewable energy, grids and energy services this year, after an estimated five per cent gain in core earnings in 2017, its chief executive said.

She said 2018 would see an acceleration of growth.

“Our 2017 earnings guidance was based on a growth rate of about five per cent for our core businesses, which is a lot in today’s world. For 2018, our ambition is to continue moving ahead at a very high pace,” she said.

While she painted a rosy picture for earnings, she said a plan to invest EUR15bn in new assets was nearly complete, but she did not give a detailed breakdown on how the money had been spent.

Last year, Engie sold its upstream liquefied natural gas assets for $1.5bn, its exploration and production business for $3.9bn and the Loy Yang B coal-fired power station in Australia for $835m.

Of the EUR15bn expected to be raised from the disposal of fossil fuel assets, Kocher said Engie had already spent about two thirds and signed or secured about 90 per cent.

Engie has not made major acquisitions in the past two years: in 2017 it bought 40 per cent of Dubai cooling specialist Tabreed for $762 million and the building regeneration business of Keepmoat for $455m, as well as a stake in electric vehicle charging specialist EVBox and the energy services activities of Spie in Morocco.

In renewable energy, it brought 6 GW of new power generation online over the past two years, and another 6 GW have been signed or secured.
In Chile, it is building a power network that will connect the country’s northern and southern power grids. Kocher also confirmed Engie is interested in bidding for a stake in a gas pipeline grid owned by Brazil’s Petrobras.
Kocher said that about 12,000 new staff had been hired in the company’s energy services division, boosting the unit’s headcount to 100,000, two-thirds of the total.

Kocher said the shift to renewables, grids and services had improved Engie’s return on capital employed.

“All of this is of significant scale, and as it is organic growth,” she said, adding that she would outline a new strategy for 2030 in the second half of 2018.

[maywillow] 16/1/2018 10:55

BARCELONA (Agefi-Dow Jones) - Focus on Engie's Reinvestment Phase (EBGI.FR) after CEO of the energy giant said the group's divestiture program had been completed about 90%, says Bryan Garnier. The broker believes that the group's strategic business should continue to grow by approximately 5% and that Engie should remain opportunistic with respect to its external activities. Bryan Garnier also notes that governance will be on the agenda in 2018, the succession of incumbent President Gérard Mestrallet being likely to depend on a potential law on the thresholds of capital and voting rights held by the French state in Engie. The share gained 1.5% to 14.70 euros.




-Anthony Shevlin, Dow Jones Newswires ed: ECH




(END) Dow Jones Newswires


January 16, 2018 05:17 ET (10:17 GMT)

[la forge] 16/1/2018 10:07

(CercleFinance.com) - Engie is a kind of mystery: the title continues an endless stagnation between 14.2 and 15E (for more than 4 months, it began September 7).
Not only is the episode of lateral drifting of a rare length but the volatility - less than 7% - is of a confusing weakness.
In case of exit from the top or the bottom, a rise - or a drop - 'funicular' could start in the direction of 17 then 20E ... or 13E (major support late April or early July 2017).

[waldron] 15/1/2018 21:59

ENGIE to acquire two energy companies in West Africa, Afric Power and Tieri
By Oil and Gas Republic on Jan 15, 2018@ogrepublic

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Afric Power and Tieri
Acquisition of Afric Power and Tieri gives ENGIE strong local presence to accelerate its expansion in energy services in West and Central Africa
The companies, based in Côte d’Ivoire, Burkina Faso, Mali and Niger, have been able to export their competencies throughout the region
ABIDJAN, Ivory Coast, — ENGIE (www.ENGIE-Africa.com) has signed an agreement to acquire two companies specialising in energy services in West Africa. Afric Power and Tieri (www.Tieri.com) employ more than 140 people specialising in the design, installation and maintenance of electrical systems and automated control mechanisms in West Africa. The companies, based in Côte d’Ivoire, Burkina Faso, Mali and Niger, have been able to export their competencies throughout the region. This acquisition reaffirms ENGIE’s goal of quickly expanding to become one of the leaders in energy services in West and Central Africa.

Philippe Miquel, Regional Manager of ENGIE West and Central Africa, says: “Afric Power and Tieri have both made their mark in the region and built up a diverse customer portfolio by focusing on quality, proximity and innovation. We fully share these values and are convinced that this solid foundation combined with ENGIE’s expertise, financial clout and international credentials will enable us to quickly establish the integrated energy service provider the region needs.”

Afric Power and Tieri are complementary companies offering a comprehensive service including system design, the assembly of electrical cabinets and automated control mechanisms, and the installation, maintenance and warranty coverage of equipment. The companies have forged strong partnerships with customers operating in many sectors, such as agro-industry, agri-food, mines, large-scale services and data centres.

ENGIE’s activities in West and Central Africa are focused on centralised energy generation, mini-grids and individual solar kits. ENGIE has recently distinguished itself in the energy sector by commissioning the Santhiou Mekhe solar photovoltaic plant in Senegal [1] (30 MW), being awarded the energy and systems component of the Dakar Regional Express Train (TER) project [2] and commissioning the Soubré hydroelectric dam (275 MW) in Côte d’Ivoire [3].

ENGIE will capitalise on this acquisition to set up a regional platform with a view to offering energy services (installation and maintenance) to commercial and industrial customers, both private and public.

[1] Turnkey contract handled by Solaire Direct, a subsidiary of ENGIE.
[2] Turnkey contract handled by ENGIE Ineo, a subsidiary of ENGIE.
[3] Project management assistance contract handled by Tractebel, a subsidiary of ENGIE.

[la forge] 15/1/2018 15:22

(Boursier.com) - It is still a little early to know the decision of the state regarding its participation in Engie. But the boss of the group, Isabelle Kocher, has no apprehension on the scenario that will be retained. With or without the public tutelage, the energy company will continue the profound change that will allow it to eventually be among the giants of renewable energy. The leader is preparing for all scenarios, even that of a total withdrawal of the state, "if the government considers that it is not necessarily with a share of the capital that it can have an influence on the energy infrastructures of the country, "she said this morning at a press conference.

The Agency of the participations of the State owns 24,10% of the capital of Engie, its biggest quoted line if one excludes EDF. On the basis of the current exchange rate, 15.55 euros, it weighs 8.55 billion euros. The state had sold 4.5% of the capital last September, after having sold 4.1% in January 2017. In a report published last year, the Court of Accounts estimated that the authorities could afford to lower their holding around 20%, without any loss of significant influence. However, it will be necessary to legislate: by regulation, the State is not entitled to hold less than a third of Engie's voting rights over a long period. If it is currently below this threshold (27.1%), the recovery of double voting rights will enable it to comply again with the obligation in the coming months. The last placement had been calibrated in that sense, said Bercy. A legal change is a fortiori necessary if it entered into the plans of the government to definitively leave the capital.

CEO or CEO?

Being alone or accompanied, Isabelle Kocher has no preference. But what is true for the shareholders is not necessarily true for the management of the company. Asked about the succession of Gérard Mestrallet, its president, who must hand in May, the executive director kicked in touch. "As long as the process has not come to an end and as long as no decision has been announced by the board of directors, I will not comment," she said in conference. It is common knowledge that after triumphing over the main pitfalls of the reorganization of her group, Isabelle Kocher would see herself as Chief Executive Officer. We can easily imagine that she probably did not like the rumor spread this morning by 'The Expansion Letter', according to which Gérard Mestrallet would see Ségolène Royal succeed him to the non-executive presidency of Engie. .

[waldron] 13/1/2018 13:08

Engie and Macquarie make joint investment in battery storage firm
01/12/2018
By Diarmaid Williams
International Digital Editor

Engie and Macquarie Group have come together to invest £3m in Newcastle, England-based battery storage firm Connected Energy.

Connected Energy uses spent battery packs from electric vehicles to create on-site energy storage solutions for industrial and commercial companies.

The company says that by using second-life EV batteries, its E-STOR solution can deliver the benefits of battery storage at lower cost to businesses.

As well as security of supply, resilience and peak cost avoidance, storage enables businesses to share revenues from utilities and virtual power plant operators by helping provide grid balancing services.

The Energyst website reports that Connected Energy will use the cash to scale its operations, and to fulfil a “tremendous pipeline of demand” for its storage systems, according to CEO Matthew Lumsden.

“In this uncertain energy landscape we look forward to capitalising on the burgeoning need for grid balancing schemes through energy storage, as well as adding to the sustainability of electric vehicles,” he said.

Connected Energy uses second life batteries from Renault vehicles.

As well as Engie and Macquarie, the firm lists Boston Renewables, Bryt Energy, EDF Energy, Efficient Power Solutions, Parker, Statkraft, University of Warwick and Videre as strategic partners.

[waldron] 13/1/2018 10:51

Market Chatter: Shell, Total Consider Bid for Dutch Utility Eneco Group
January 12, 2018, 03:40:00 PM EDT By MT Newswires, MT Newswires

Shutterstock photo

Royal Dutch Shell ( RDS.A ) ( RDS.B ), an oil giant, is making preparations to bid for green energy firm Eneco whose owners are made up of 53 local councils, the Telegraaf reported on Friday, citing unidentified sources.

Shell's French competitor Total ( TOT ) also contacted advisors this month about a possible offer, the Telegraaf reported.

Other potential buyers include investment company HAL, pension fund PGGM, Japan's Mitsubishi, Austrian energy group Vebund, private equity group CVC and French energy titan Engie, according to the report.

[waldron] 10/1/2018 18:35

Engie ordered to address North Sea Gjøa safety concerns
01/10/2018

Offshore staff

OSLO, Norway – The Petroleum Safety Authority Norway (PSA) has served an order to Engie E&P Norge after completing an investigation of a condensate leak on the Gjøa field in the North Sea last June.

The leak occurred in the process module on the Gjøa semisubmersible platform and led to gas detection, a general alarm, automatic shutdown of the process plant, pressure blowdown, and mustering in accordance with the alarm instructions.

Gjøa, which came onstream in 2010, has been developed with four subsea templates and a satellite well tied back to the platform.

Engie estimated the leakage rate at 1.06 kg/s and the total quantity at around 1.25 cu m (44 cu ft). Analysis showed that the fluid consisted largely of produced water with small quantities of hydrocarbons (gas and condensate).

The condensate did not ignite during the incident, and the leak was stopped after about 30 minutes.

According to the PSA, the cause was a fatigue fracture in a weld on a ½-in. pipe nozzle on a condensate pump connected to the gas recompression system.

An emergency shutdown valve (ESV) upstream from the leak site failed to close.

The emergency response command on the facility decided to evacuate staff to the shore, however, the all-clear was given on Gjøa soon afterwards.

Engie’s maintenance of the ESVs and associated actuators was inadequate, the investigation found: these problems had been known over a long period, but not dealt with, the PSA pointed out.

The main non-conformities with regulations related to the:

Barrier management system
Management and maintenance system
Response to vibration
Organization and management.

In addition, the PSA identified the need for improvement point concerning carcinogenic and mutagenic chemicals.

It has ordered Engie to take steps to ensure that safety-critical equipment is operated, tested and maintained in a way which ensures the performance of the barriers at all times. Deadline for compliance is Feb. 2.