The client, focusing on power plant solutions and supply of marine engines was interested in the potential usage of flare gas to produce power in oil rigs, platforms and oil refining complexes. The client requested UC Strategy to conduct a market assessment to estimate the opportunity/ market size in areas like engine driven pumps for oil pipelines (>1 MW), gas-engine driven compressors in gas pipelines (4 MW to 8 MW), waste (e.g. flare gas) for power generation in upstream facilities and power requirements in upstream platforms (gas injection and storage).
To conduct a market assessment to estimate the market size in the defined areas, UC Strategy adopted the following approach:
- Landscaped oil and gas industry needs
- Segmented the oil and gas along with insights into current power systems used across the oil and gas value chain
- Determined the drivers for selection of power systems
- Assessed demand in the oil and gas segment
- Mapped the current network of installations
- Determined the economics for users to convert from their existing system to applicable product
- Assessed demand of waste to power
- Determined the potential power that can be generated from the quantum vented out
- Assessed the market demand for waste to power over the next 5 years (in terms of MW and value).
The client received a deeper understanding of the industry needs and the market demand forecast for each product segment in the oil and gas sector. It also obtained insights into planned crude oil/gas pipeline projects, and an appreciation of the economics of the product, taking factors like carbon credits under consideration.