INVESTMENT OPPORTUNITY:

Maintenance, Repair & Overhaul

Overhaul and refurbishment

service center for compressors

and turboexpanders

Executive summary

2MRO INVESTMENT OPPORTUNITY: ESTABLISH A SERVICE CENTER FOR COMPRESSORS AND TURBOEXPANDERS

◼ Establish a service center for centrifugal compressors and turboexpanders in Qatar.

◼ The local capabilities should include onsite overhaul services and offsite workshop refurbishment

services to repair the rotors installed in centrifugal compressors and turboexpanders.

◼ A full-fledged centrifugal compressors and turboexpander workshop is not available in Qatar.

◼ The demand of overhauls and rotor refurbishments of centrifugal compressors and

turboexpanders in Qatar is expected to be approximately QAR 75M in 2018, which will potentially

increase to approximately QAR 96M by 2023 due to local growth, based on:

An installed base of approximately 600 centrifugal compressors and approximately 50

turboexpanders, of which 550 require regular maintenance services

An expected installed base growth of 4-6 percent p.a.

◼ The different types of centrifugal compressor and turboexpander refurbishment services can be

provided by different suppliers not limited to the OEMs.

Localization opportunityBusiness scope

◼ Major overhauls and minor overhauls of centrifugal compressors and turboexpanders

◼ Refurbishment services for centrifugal compressors and turboexpanders

◼ OEM-certified support to perform inspections and refurbishments

◼ OEM-certified or approved centrifugal compressor and turboexpander refurbishment facilities

with the following required services (not limited to)

Rotor inspection

Nondestructive testing

Rotor straightening

Rotor balancing

Impeller spin test

Demagnetization

Specialized coating

Welding and machining

Heat treatment

Out of scope

◼ Manufacturing of compressors or turboexpanders

◼ Manufacturing of rotor blades

Typical gas compressor

Detailed opportunity description

3

Establish a service center for compressors

and turboexpanders ◼ Centrifugal compressor and turboexpander services

represent – next to gas turbine services – a majority of

the maintenance costs of the Qatari Energy sector.

◼ The main centrifugal compressor and turboexpander

service provided are minor and major overhauls.

◼ The off-site rotor refurbishments include destacking and

stacking, rotor repair, demagnetization, specialized

coating, heat treatment, high and normal speed

balancing.

◼ Currently, the majority of the centrifugal compressor and

turboexpander rotor refurbishment and on-site services

of non-GE turbomachinery are provided outside Qatar.

Capital intensity

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

MRO INVESTMENT OPPORTUNITY: ESTABLISH A SERVICE CENTER FOR COMPRESSORS AND TURBOEXPANDERS

75 79 83 87 91 96

20232018 19 2220 21

Centrifugal

compressors and

turboexpanders

200 210 220 230 245 255

Estimated compressors and turboexpanders, serviced per year, number

Relevant stakeholders

Top 3 buyers Other demand

Market size

4

Estimated spend (Qatar only) on selected centrifugal compressors and

turboexpanders, QAR M

Forecast

Key highlights

◼ There are 550 operational centrifugal compressors and turboexpanders as 100 of the centrifugal

compressors and turboexpanders are on standby.

◼ 60 percent of centrifugal compressors and turboexpanders typically require rotor refurbishment

every maintenance cycle (5-6 years).

◼ More than 50 percent of compressors and turboexpanders are undergoing overhaul outside

Qatar.

◼ Demand for rotor refurbishments is expected to increase 4-6 percent per year as more

installations will be built due to a growing Energy sector in Qatar.

Top 3 buyers

MRO INVESTMENT OPPORTUNITY: ESTABLISH A SERVICE CENTER FOR COMPRESSORS AND TURBOEXPANDERS

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 INVESTMENT OPPORTUNITY: ESTABLISH A SERVICE CENTER FOR COMPRESSORS AND TURBOEXPANDERS

Email: tawteen@qp.com.qa | Website: https://tawteen.com.qa