market opportunity: gas turbine service center to …

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MARKET OPPORTUNITY: Maintenance, Repair & Overhaul Gas turbine service center to perform overhaul services and refurbishment work

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MARKET OPPORTUNITY:

Maintenance, Repair & Overhaul

Gas turbine service center to

perform overhaul services and

refurbishment work

Executive summary

2MRO MARKET OPPORTUNITY: ESTABLISH A GAS TURBINE SERVICE CENTER TO PERFORM OVERHAUL SERVICES AND REFURBISHMENT WORK

Establish a gas turbine service center to perform overhaul services and refurbishment work of gas

turbines (excluding GE gas turbines) in Qatar.

The local capabilities should include onsite inspection services (with field service engineers) and

offsite workshop refurbishment services of gas turbine components.

Non-GE turbines (Siemens, Mitsubishi, or Solar) are generally refurbished outside Qatar and

serviced using nonlocalized resources.

Therefore, there is potential to set up a local workshop to service non-GE gas turbines for

inspection and maintenance not provided in Qatar.

The demand of gas turbine services in Qatar is expected to be approximately QAR 90M in 2018,

which will potentially increase to approximately QAR 115M by 2023 due to growth, based on:

An installed base of approximately 90 gas turbines (excluding GE) of which circa 80 require

regular maintenance services

An expected installed base growth of 4-6 percent per year.

Different types of gas turbine maintenance services can be provided by different suppliers.

Localization opportunity

Business scope

Gas turbine services depend on the turbine size

Small- to medium-sized gas turbines (<60 MW) are serviced via on-site inspections and off-site

workshop refurbishment services

Large gas turbines (>60 MW) are mainly serviced on-site

Gas turbines typically require three types of inspections

Combustion inspection

Hot gas part inspection

Major overhaul

Services of all sizes of gas turbines, excluding GE turbines

OEM-certified or OEM-supervised on-site service support to perform inspections, troubleshooting,

and modifications

An OEM-certified or approved gas turbine workshop to perform the following services

Refurbishment of gas turbine components (e.g., combustion liners, transition pieces, nozzles,

buckets)

Refurbishment of rotors (including demagnetization, specialized coating, welding, and

machining)

Out of scope

Manufacturing of gas turbines or gas turbine components

Typical gas turbine under heavy

maintenance

Detailed opportunity description

3

Establish a gas turbine service center Gas turbine services represent a significant portion of the

maintenance costs for the Energy sector. Siemens,

Mitsubishi, and Solar turbines are generally refurbished

outside Qatar and serviced using nonlocalized resources.

Only large utility-sized turbines (e.g., Siemens SGT5 series)

are serviced on-site via a special service line.

The gas turbine service center will perform overhaul

services and refurbishment work on gas turbines.

The gas turbines will be used for power generation and

mechanical drive.

The local capabilities should include on-site inspection

services (with field service engineers) and off-site workshop

refurbishment services of gas turbine components.

Capital intensity

Low (QAR 0-10M) Medium (QAR 10-50M) High (QAR 50M+)

MRO MARKET OPPORTUNITY: ESTABLISH A GAS TURBINE SERVICE CENTER TO PERFORM OVERHAUL SERVICES AND REFURBISHMENT WORK

90 95 99 104 109 115

2023212018 19 20 22

Gas turbines

inspected80 85 90 95 95 100

Estimated non-GE gas turbines serviced per year, number

Relevant stakeholders

Top 3 buyers Other demand

Market size

4

Estimated spend (Qatar only) on selected gas turbine services, QAR M

Forecast

Key highlights

Qatar has an installed base of approximately 300 gas turbines, of which there are approximately

90 gas turbines not manufactured by GE.

There are approximately 80 fully non-GE gas turbines as the remaining ten gas turbines are on

standby.

Gas turbines typically require the following inspections (including repairs) each maintenance cycle

(5-6 years):

Combustion inspection

Hot gas parts inspection

Major inspection.

Demand for a gas turbine workshop service is expected to increase 4-6 percent per year based

on a growing installed base of gas turbines in Qatar.

Top 3 buyers

MRO MARKET OPPORTUNITY: ESTABLISH A GAS TURBINE SERVICE CENTER TO PERFORM OVERHAUL SERVICES AND REFURBISHMENT WORK

Disclaimer

5

The material, data, charts and pieces of information contained in this document (“Information’) is for

general information purposes only and should not be construed as an investment or commercial advice

or as a recommendation whatsoever. The user of the Information (“User”) is responsible for

independently verifying the Information and shall make his own determination as to how suitable the

Information is for his own usage and intent. User should not rely upon the Information as a basis for

making any business or investment decisions. Whilst Qatar Petroleum endeavours to provide and keep

the Information up to date and correct, Qatar Petroleum makes no representations or warranty of any

kind, express or implied about the content, completeness, accuracy, quality, reliability or suitability with

respect to the Information for any purpose. Qatar Petroleum expressly disclaims liability for errors

and/or omissions in the Information contained in this document and shall in no event be liable for

damages resulting from the use or reliance of User upon the Information. Any reliance the User of the

Information places on such Information is strictly at User’s own risk.

MRO MARKET OPPORTUNITY: ESTABLISH A GAS TURBINE SERVICE CENTER TO PERFORM OVERHAUL SERVICES AND REFURBISHMENT WORK

Email: [email protected] | Website: https://tawteen.com.qa