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Saipem (SAPMF) Wins Offshore Carbon Capture Projects in the UK
Saipem (SAPMF) Wins Offshore Carbon Capture Projects in the UK
About this update from Saipem S.p.a.
Saipem S.p.A SAPMF 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 PicksCurrently, SAPMF carries a Zacks Rank #2 (Buy).Apart from Saipem, investors interested in the energy sector might also consider Sunoco LP SUN, Archrock Inc. AROC...