Natural gas compression and process skids for 30 per cent of the cost of new
In North America, there’s always been a significant market for used and surplus equipment in the oil and gas industry. Australian energy producers now have the opportunity to purchase high-quality surplus equipment at an affordable price – which could be the difference between a project getting off the ground or not.
Budget and schedule overruns are not a new phenomenon for the oil and gas sector or other project-based industries. However, the current period of low oil prices has led to increased sensitivity around escalating development costs and called into question the commercial viability of many projects.
One of the biggest costs for oil and gas projects is equipment sales – compressors and process equipment have always made a significant dent on the bottom line for any project. When cost savings can be made in sourcing this equipment, it goes without saying that it’s going to have a big impact on profitability.
Traditionally, most large energy companies strictly adhered to their own standards for equipment. In the global effort to reduce costs, most large energy companies have begun adopting global fit-for-purpose standards and purchasing equipment that allows them to lower overall project costs.
The job of the engineering team purchasing the equipment is no longer just to make sure their own organisation’s standards are followed. These engineers are now tasked with questioning their own standards and evaluating each piece of equipment purchased to make sure it will work safely and efficiently for each application.
Investment in Canada’s upstream oil and gas industry has declined consistently from 2014 through to 2018, and a number of explorers and developers are shutting down their Canadian operations. As a result, they have a considerable inventory of used equipment, such as natural gas compressors, that they’re keen to rehome.
Meanwhile, in the US, the size of the market is so large that developers often end up over-ordering on their equipment needs – in this case, resulting in surplus equipment available to the market.
What does this mean for Australia? Well, a partnership between Wade Elofson, Founder and Managing Director of Powered Australia, and Raj Singh, CEO of Fuelled, has made it possible for Australian oil and gas producers to quickly and easily locate surplus equipment at a fraction of the original cost.
Easily locate the right equipment for the job
According to Mr Elofson, this partnership will deliver three main benefits to Australian producers.
“Firstly, Australian project developers gain access to equipment such as compressors and process skids for 30 per cent of the cost of new,” Mr Elofson said.
“Secondly, developers are able to source equipment for their projects quickly and efficiently – where you might wait twelve months between ordering a new compressor package with unique specifications and delivery, when you order through Powered and Fuelled, the equipment is available and delivered to Australia within a few months.
“Thirdly, Powered is able to adapt the equipment to ensure it is Australian-compliant and ready to go as soon as it arrives on site – in fact, we guarantee the equipment we import meets Australian standards and specifications.”
Fuelled has developed an easy to navigate website, as well as an app that is available for both Apple and Android, so that oil and gas project developers can review the inventory of equipment the company currently has available at the touch of a button.
Users can search by equipment type, condition and location, along with a range of other categories, to try and source the right piece of equipment for their project.
When Australian developers find the piece of equipment they’re after, they just get in touch with Mr Elofson and the team from Powered, who can work through all of the steps required to bring the particular piece of equipment to site.
“The unique benefit we’re able to offer to Australian E&Ps through our partnership with Fuelled is access to the biggest fleet of compressors and process skids in the world,” said Mr Elofson.
“We’re offering equipment with Caterpillar and Waukesha engines, and Ariel, Frick, Kobelco etc compressors – it’s all the names you already know and trust. In some cases, this equipment hasn’t even been used before.
“Through the website, our local energy companies get complete visibility of where the equipment is, and what it costs. There’s videos, there’s pictures, there’s everything you need to show you exactly what each piece of equipment is. This transparency takes the guesswork out of making a purchase.
“When the customers are ready, we organise the sale of the equipment and the delivery to site, so the process is as simple as possible. There are also rental options as well – it’s all about helping developers in Australia get gas to market as quickly as possible.”
For more information, please contact firstname.lastname@example.org or call Wade Elofson on +61 474 128 517.