REG-Petrofac Limited Petrofac Limited: PETROFAC AND HITACHI ENERGY ANNOUNCE SECOND PROJECT IN SUPPORT OF TENNET’S 2GW PROGRAMME
20/12/2023 07:15
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Petrofac Limited ( PFC)
Petrofac Limited: PETROFAC AND HITACHI ENERGY ANNOUNCE SECOND PROJECT IN
SUPPORT OF TENNET’S 2GW PROGRAMME
20-Dec-2023 / 07:05 GMT/BST
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Press Release
This announcement contains inside information
20 December 2023
PETROFAC AND HITACHI ENERGY ANNOUNCE
SECOND PROJECT IN SUPPORT OF TENNET’S 2GW PROGRAMME
• Second contract award under the six-project, US$14 billion, multi-year
Framework Agreement with TenneT
• Petrofac’s portion of the second contract valued at around US$1.4
billion
• Award coincides with confirmation that Petrofac has secured the
performance guarantee required for the first contract awarded by
TenneT in March 2023
• Second contract contains similar industry standard requirement for
Petrofac to provide a performance guarantee
• Additional contracts within TenneT’s 2GW Framework Agreement expected
at approximately six-month intervals
Petrofac, a leading provider of services to the global energy industry,
and Hitachi Energy, a global technology leader that is advancing a
sustainable future for all, announce today the award of the second project
under the US$14 billion, multi-year Framework Agreement with TenneT – the
Dutch-German Transmission System Operator – to expand offshore wind
capacity in the North Sea.
The project is to be executed under a standalone contract, with Petrofac’s
portion valued at around US$1.4 billion.
The companies will work together to deliver Nederwiek 1, a Dutch
transmission station which forms part of TenneT’s landmark 2 Gigawatt
(2GW) Programme, comprising several high-voltage direct current (HVDC)
offshore grid connection systems, each with a transmission capacity of 2
gigawatts.
In an initial announcement earlier this year, Petrofac and Hitachi Energy
reported the award of the six-project Framework Agreement. Under this
landmark agreement, Petrofac will undertake the engineering, procurement,
construction, and installation (EPCI) of offshore platforms and elements
of the onshore converter stations while Hitachi Energy will supply its
HVDC converter stations, which convert AC to DC power offshore and DC to
AC onshore.
Since the initial announcement, Petrofac’s and Hitachi Energy’s teams have
collaborated closely on the preparatory works, reserving production
capacity for multiple platforms and HVDC technology, and initiating the
detailed design process for the first platform, the Ijmuiden Ver Alpha.
Further to the Group’s market update on 4 December, today’s announcement
coincides with confirmation that Petrofac has secured the performance
guarantee required for the Ijmuiden Ver Alpha contract. The Group remains
in active discussion with credit providers and its clients to secure the
guarantees required for other new contracts in its portfolio.
Additional projects within the TenneT’s 2GW Programme are expected to be
awarded at approximately six-month intervals. These are the grid
connections landing at Geertruidenberg or Moerdijk (Nederwiek 3) and
Eemshaven (Doordewind 1 and Doordewind 2). The sixth project, the German
connection LanWin5, will be connected near Rastede, Germany.
Commenting on the award, John Pearson, Chief Operating Officer, Energy
Transition Projects, Petrofac, said: “We have been collaborating with our
partner Hitachi Energy, and client TenneT, on the first project, Ijmuiden
Ver Alpha. The award of Nederwiek 1 continues our focus on the
standardisation and harmonisation of design and execution that will be
central to the ‘design one, build many’ philosophy of the 2GW Programme.
By aligning ourselves with TenneT’s objectives, we are creating a
blueprint for the rapid deployment of large-scale infrastructure projects
crucial to Europe’s energy transition”.
Niklas Persson, Managing Director of Hitachi Energy’s Grid Integration
business, said: “As a pioneering technology and market leader, we are
delighted to collaborate to deliver our HVDC solution for Nederwiek 1,
combining world-class energy and digital systems. Our strong collaboration
with Petrofac, based on an agile business model, scalable solutions and
synergies among projects, allows us to join forces and support TenneT in
its ambition to accelerate offshore wind deployment in the North Sea,
granting European citizens more sustainable and reliable power.”
TenneT’s 2GW Programme is a crucial step in Europe’s transition to a
lower-carbon future. Germany, The Netherlands, Denmark, and Belgium have
agreed to install at least 65 gigawatts (GW) of offshore wind energy
together by 2030. Two-thirds of this (40GW) will be accounted for by
TenneT, with 20GW each in the German and Dutch North Seas. TenneT’s
innovative 2GW Programme will be vital to reaching these targets and will
provide a blueprint for the delivery of future offshore grid connection
systems. TenneT’s strategy focuses on standardisation and fostering new
contracting models within the supply chain to enable the creation of
innovative and scalable solutions that can be quickly and cost-effectively
deployed.
ENDS
For further information contact:
Petrofac:
James Boothroyd, Head of Investor Relations
1 James.boothroyd@petrofac.com
Sophie Reid, Group Director of Communications
2 Sophie.reid@petrofac.com
NOTES TO EDITORS
Petrofac
Petrofac is a leading international service provider to the energy
industry, with a diverse client portfolio including many of the world’s
leading energy companies.
Petrofac designs, builds, manages, and maintains oil, gas, refining,
petrochemicals, and renewable energy infrastructure. Our purpose is to
enable our clients to meet the world’s evolving energy needs. Our four
values - driven, agile, respectful, and open - are at the heart of
everything we do.
Petrofac’s core markets are in the Middle East and North Africa (MENA)
region and the UK North Sea, where we have built a long and successful
track record of safe, reliable, and innovative execution, underpinned by a
cost effective and local delivery model with a strong focus on in-country
value. We operate in several other significant markets, including India,
South East Asia, and the United States. We have 8,500 employees based
across 31 offices globally.
Petrofac is quoted on the London Stock Exchange (symbol: PFC).
For additional information, please refer to the Petrofac website at
3 www.petrofac.com
About Hitachi Energy
Hitachi Energy is a global technology leader that is advancing a
sustainable energy future for all. We serve customers in the utility,
industry and infrastructure sectors with innovative solutions and services
across the value chain. Together with customers and partners, we pioneer
technologies and enable the digital transformation required to accelerate
the energy transition towards a carbon-neutral future. We are advancing
the world's energy system to become more sustainable, flexible, and secure
whilst balancing social, environmental and economic value. Hitachi Energy
has a proven track record and unparalleled installed base in more than 140
countries. We integrate more than 150 GW of HVDC links into the power
system, helping our customers enable more wind and solar. Headquartered in
Switzerland, we employ more than 40,000 people in 90 countries and
generate business volumes of over $10 billion USD.
4 https://www.hitachienergy.com
5 https://www.linkedin.com/company/hitachienergy
6 https://twitter.com/HitachiEnergy
About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society
through the use of data and technology. We solve customers' and society's
challenges with Lumada solutions leveraging IT, OT (Operational
Technology) and products. Hitachi operates under the business structure of
“Digital Systems & Services” - supporting our customers’ digital
transformation; “Green Energy & Mobility” - contributing to a decarbonized
society through energy and railway systems, and “Connective Industries” -
connecting products through digital technology to provide solutions in
various industries. Driven by Digital, Green, and Innovation, we aim for
growth through co-creation with our customers. The company’s consolidated
revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1
billion yen, with 696 consolidated subsidiaries and approximately 320,000
employees worldwide. For more information on Hitachi, please visit the
company's website at 7 https://www.hitachi.com.
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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB00B0H2K534
Category Code: CNT
TIDM: PFC
LEI Code: 2138004624W8CKCSJ177
Sequence No.: 292988
EQS News ID: 1800593
End of Announcement EQS News Service
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References
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2. mailto:Sophie.reid@petrofac.com
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