Power management company Eaton has said there is a opportunity for companies offering electrical solutions for oil and gas to make over $4 billion in the next decade from the construction of LNG facilities in Tanzania and Mozambique.
Speaking at the sidelines of the Eaton Tech Day in Nairobi director of Tan Sales Limited Parit Shah currently overseeing works in Tanzania for the power management company it is estimated that electrical will account for 10 percent of the total costs of two LNG facilities in the two east African states.
Each project is currently estimated to cost about $20 billion with the Tanzanian project expected to kick off in the next 18 months at Lindi.
“Given that both projects will cost around $40 billion we believe that there is a reason for companies such as ourselves to be excited as we know that a tenth of this cost will go to electrical which we supply,” Shah told OilNewsKenya.
The company with over 100 years in the oil and gas sector also sees a market for its products in the hydraulic and filtration systems with eyes on the Kenyan oil industry once production starts,
“We are waiting for Tullow Oil to start putting up production facilities and that is where we come ,” says Regional Manager for East Africa Stavros Spyropoulos.
Eaton is among companies showcasing their innovations in Enhancing Safety and Performance for the Oil and Gas Industry at 2014 Offshore Technology Conference (OTC) in Houston.
“Beyond our broad array of innovations, Eaton’s global footprint enables us to simplify the supply chain for our customers. They can work with one supplier that is ready and able to provide electrical, hydraulic and mechanical power management solutions.” Read a statement from the global director for the oil and gas segment at Eaton Gardiner Henderson.