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Saipem (SAPMF) Wins Offshore Carbon Capture Projects in the UK
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Saipem S.p.A (SAPMF - Free Report) has signed a letter of intent (LOI) related to two projects to develop offshore carbon dioxide transportation and storage infrastructure for the East Coast Cluster in the United Kingdom. The company has been awarded the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT) projects.
NEP is a joint venture among BP, Equinor and TotalEnergies. NZT Power is a joint venture between Equinor and BP.
As part of the project, Saipem will be responsible for the engineering, procurement, construction and installation of a 28" and 145 Km offshore pipeline for the NEP project. It will also be accountable for the associated landfalls and onshore outlet facilities of the same project. For the NZT project, Saipem’s scope of work covers the engineering, procurement, construction and installation of the water outfall.
The final award to Saipem is contingent upon receiving relevant regulatory clearances along with positive final investment decisions (FIDs) by the projects and the government of the United Kingdom, planned for September 2024 or earlier.
Upon completion, the two projects will serve the East Coast Cluster in Teesside. The carbon capture projects are expected to have a transportation and storage capacity of 4 million tons per year, beginning 2027.
Saipem’s flagship vessel Castorone will carry out the offshore pipeline operations. The operations near the shore will be performed by Castoro 10, the company’s shallow water pipelay.
SAPMF states that the LOI solidifies its position in the low and zero carbon segments, highlighting its engineering and technological expertise, along with its core competencies and assets across the Carbon Capture and Storage value chain.
The company is fully committed to supporting the NEP and NZTP partnerships by leveraging its best competencies. The commitment is crucial in realizing the first zero-carbon industrial hub in the North-East of England and making progress toward the U.K.’s net zero targets.
Saipem is a multinational oilfield services company, based in Italy. It is involved in drilling services as well as engineering, procurement, construction and installation services for both offshore and onshore projects.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the partnership’s outlook seems positive.
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Saipem (SAPMF) Wins Offshore Carbon Capture Projects in the UK
Saipem S.p.A (SAPMF - Free Report) has signed a letter of intent (LOI) related to two projects to develop offshore carbon dioxide transportation and storage infrastructure for the East Coast Cluster in the United Kingdom. The company has been awarded the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT) projects.
NEP is a joint venture among BP, Equinor and TotalEnergies. NZT Power is a joint venture between Equinor and BP.
As part of the project, Saipem will be responsible for the engineering, procurement, construction and installation of a 28" and 145 Km offshore pipeline for the NEP project. It will also be accountable for the associated landfalls and onshore outlet facilities of the same project. For the NZT project, Saipem’s scope of work covers the engineering, procurement, construction and installation of the water outfall.
The final award to Saipem is contingent upon receiving relevant regulatory clearances along with positive final investment decisions (FIDs) by the projects and the government of the United Kingdom, planned for September 2024 or earlier.
Upon completion, the two projects will serve the East Coast Cluster in Teesside. The carbon capture projects are expected to have a transportation and storage capacity of 4 million tons per year, beginning 2027.
Saipem’s flagship vessel Castorone will carry out the offshore pipeline operations. The operations near the shore will be performed by Castoro 10, the company’s shallow water pipelay.
SAPMF states that the LOI solidifies its position in the low and zero carbon segments, highlighting its engineering and technological expertise, along with its core competencies and assets across the Carbon Capture and Storage value chain.
The company is fully committed to supporting the NEP and NZTP partnerships by leveraging its best competencies. The commitment is crucial in realizing the first zero-carbon industrial hub in the North-East of England and making progress toward the U.K.’s net zero targets.
Saipem is a multinational oilfield services company, based in Italy. It is involved in drilling services as well as engineering, procurement, construction and installation services for both offshore and onshore projects.
Zacks Rank and Other Key Picks
Currently, SAPMF carries a Zacks Rank #2 (Buy).
Apart from Saipem, investors interested in the energy sector might also consider Sunoco LP (SUN - Free Report) , Archrock Inc. (AROC - Free Report) and Energy Transfer LP (ET - Free Report) . Sunoco presently sports a Zacks Rank #1 (Strong Buy), whereas Energy Transfer and Archrock each hold a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the partnership’s outlook seems positive.