Canada-based Northland Power is said to be closing in on the award of a prized contract involving the Hai Long offshore wind project in Taiwan.
Multiple people familiar with the development told Upstream that the operator is moving ahead swiftly on the Hai Long 2 & 3 development, with a contract providing for two offshore wind substations likely to be inked within weeks.
“The operator is nearing the decision phase for the Hai Long contract award,” one person said.
The project is widely thought to be valued between $200 million to $250 million, and the offshore facilities are comparable to an offshore riser platform, which is commonly used for oil and gas infrastructure development, a second person said.
The contract is said to be a “Preferred Supplier Agreement” and will include the engineering, procurement and construction of two offshore wind substations, project watchers said.
Topside and jackets
The workscope of this tender comprises topsides and jackets for the Hai Long 2 & 3 development, but the scope does not involve the installation, another person said.
Northland Power’s Hai Long development aims to build 1.044 gigawatts of installed offshore wind capacity in the Taiwan Strait.
Hai Long is part of a huge global buildout of sea-based wind capacity that will reduce reliance on fossil fuels in key energy-consuming regions such as Asia.
A Northland Power spokesperson said in an email reply to Upstream queries “that the Hai Long project is in the late stages of negotiation with potential preferred suppliers” and the company “will release a statement at an appropriate time.”
However, the Canadian player did not elaborate on the potential frontrunner or the preferred contractor for the Hai Long project.
In the fray
Those said to be competing for the coveted job include a grouping of Vietnam’s PetroVietnam Technical Services Corporation with Denmark-headquartered Semco Maritime, another consortium of Malaysia’s Sapura Energy and Danish player Ramboll, Singapore’s Keppel Offshore & Marine, and US-based McDermott International, project observers said.
As players known for providing EPC services in the oil and gas sector seek to diversify, they are now banking on new offshore wind projects to boost their order books, which have dwindled due to reduced contracting activity in the oil and gas markets.
The Hai Long project owners include independent power producer Northland Power with a 60% stake, with Asian-based Yushan Energy and Mitsui, each on 20%.
They have joined forces to develop the Hai Long 2 and 3 wind farms in zones 18 and 19 offshore Changhua.
Hai Long 2A will have a capacity of 300 megawatts, Hai Long 2B will have 232MW and Hai Long 3 an additional 512MW, according to the company’s website.
Commissioning for the wind project is expected by the end of 2025 and 2026, following a final investment decision that is expected in 2022.
Northland Power's Hai Long project in the Taiwan Strait is expected to play a key role in Taiwan's offshore wind expansion and will be developed across various grid allocations.
Contracts in place
Belgian contractor DEME’s Taiwanese unit in 2019 signed a contract that involves engineering, procurement, construction and installation (EPCI) of foundations, cabling, transportation, and installation of turbines at Northland Power’s Hai Long 2&3 wind project offshore Taiwan.
DEME signed the so-called balance of plant preferred supplier agreement through CSBC DEME Wind Engineering (CDWE), which is a joint venture between Taiwanese shipbuilder CSBC Corporation and DEME Offshore.
DEME earlier said it will start the offshore installation of Hai Long 2&3 in 2023.
In addition to the ongoing development of Hai Long, Northland is continuing to develop other offshore wind projects including the Chiba project in Japan and the Dado Ocean project in South Korea, and it has announced early-stage works for Round 3 projects in Taiwan, Northland had earlier said.