NOVA SCOTIA DEPARTMENTN=== of ENERGY Nova Scotia EXPORT MARKET ANALYSIS

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NOVA SCOTIA DEPARTMENTN=== of ENERGY Nova Scotia EXPORT MARKET ANALYSIS NOVA SCOTIA DEPARTMENTN=== OF ENERGY Nova Scotia EXPORT MARKET ANALYSIS MARCH 2017 Contents Executive Summary……………………………………………………………………………………………………………………………………….3 Best Prospects Charts…….………………………………………………………………………………….…...……………………………………..6 Angola Country Profile .................................................................................................................................................................... 10 Australia Country Profile ................................................................................................................................................................. 19 Brazil Country Profile ....................................................................................................................................................................... 30 Canada Country Profile ................................................................................................................................................................... 39 China Country Profile ....................................................................................................................................................................... 57 Denmark Country Profile ................................................................................................................................................................ 67 Kazakhstan Country Profile ........................................................................................................................................................... 76 Malaysia Country Profile ................................................................................................................................................................. 85 Mexico Country Profile .................................................................................................................................................................... 93 Norway Country Profile ................................................................................................................................................................. 102 Qatar Country Profile ..................................................................................................................................................................... 111 Saudi Arabia Country Profile ....................................................................................................................................................... 118 South Africa Country Profile ....................................................................................................................................................... 126 United Kingdom Country Profile ............................................................................................................................................... 134 United States of America Profile………………………………………………………………………………………...………….……….…145 DISCLAIMER located on Page 5 and Page 162 Duggan International Group 2017 2 | P a g e prepare Nova Scotian companies by describing Nova Scotia Department of Energy (NSDOE) is mandated to investigate economic opportunities best prospects, partnerships and technology transfer opportunities with WECP participating for Nova Scotia technology developers and supply chain service providers. To assist the companies. WECP companies, in turn, will be educated on opportunities, sales and foreign energy industry, NSDOE commissioned a global market analysis of the energy sectors of World direct investment in Canada. Energy Cities Partnership (WECP) member From the market profiles, several themes are countries. The following cities/countries of the prevalent across the globe: WECP were included in this analysis: Cape Town (South Africa), Luanda (Angola), Calgary . Fossil fuels will continue to play a (Canada), Halifax (Canada), St. John’s (Canada), significant role in the global energy mix. Villahermosa (Mexico), Atyrau (Kazakhstan), . All countries have made a commitment Dammam (Saudi Arabia), Daqing (China), Doha to reduce greenhouse gas emissions (Qatar), Karamay (China), Kuala Lumpur (GHG) by increasing their energy (Malaysia), Aberdeen (Scotland), Esbjerg production from renewable resources. (Denmark), Stavanger (Norway), Perth (Australia) To achieve these goals, all countries will and Houston (USA). need to invest their own money and find private investors to advance innovation, The purpose of this analysis is to prepare and technology and infrastructure to cost inform Nova Scotia companies of export effectively bring renewable energy to opportunities in these countries, and maximize the grid. the relationships of upcoming trade events in . International oil companies and Halifax and abroad. These events include: governments were affected financially Offshore Technology Conference (OTC 2017); by the volatile oil prices. Some May 1-4, Houston, Texas; the European Wave countries, whose energy consumption and Tidal Energy Conference (EWTEC 2017), Aug. relies on other forms of energy such as 27-Sept. 2, Cork, Ireland; and Offshore Europe Australia and Qatar, were more 2017 – Sept. 5-8, Aberdeen, Scotland. insulated. International oil companies and The final events will be held in October 2017 in operators in the supply chain incurred Halifax. The World Energy City Partnership heavy employee layoffs. (WECP) annual general meeting will be hosted . Several international oil companies simultaneously with the Maritime Energy merged and consolidated with other Association’s (MEA) 35th anniversary Core Energy Conference. The WECP steering companies and/or sold assets. New exploration was delayed in favour committee will be bringing a delegation of companies to Halifax to participate in both of life extension of existing proved fields. events. The country profiles in this analysis will Duggan International Group 2017 3 | P a g e . Although, all but one country is the experience of working in foreign languages, experiencing a turnaround in oil and gas country regulations and working with exploration, production is still in decline. government officials. New technology in both products and Today’s political climate may also be favourable services are desperately needed to for Nova Scotian companies. Mexico could be a effectively and efficiently manage both good market for Canada because of the political upstream and downstream operations. tensions with the US, and potential changes to . New technologies are needed in NAFTA. Additionally, the Brazilian government is renewable energy for it to be more cost lowering its local content rules to attract foreign effective over oil, LNG or coal power. investors. South Africa is considered a frontier market by oil and gas companies, yet Nova The information presented in this report was Scotia companies may find niche opportunities sourced from the specified country’s here and less competition from other government and trade association websites, international companies. In renewable energy, trade and industry reports from the US and the Saudi Arabia is issuing requests for proposals in UK government, published research reports, April 2017, with billions in financial backing. news articles and primary in-country contacts. International renewable energy companies are closely following developments in Saudi Arabia. The oil and gas industry is forever changing and Australia, however, may be the prospect with the best prospects for Nova Scotia companies are least potential for Nova Scotia, due not only its based on global and local perspectives. Ranking proximity, but the market slow down. Australia, of countries based on opportunities for Nova nonetheless, is a leader in LNG exports, a Scotia's energy services sector may be difficult gateway to Asian countries. These factors all as providers are varied and the level of export offer opportunities for Nova Scotian companies. preparedness is also diverse. Much of Nova Scotia’s strengths are in subsea technology and Nova Scotia is emerging as a leader in the global services. However, if industry is to grow and tidal energy industry and is home to Canada’s expand, companies need to acquire the latest leading test site for in-stream tidal energy innovations. This could include acquiring devices, the Fundy Ocean Research Center for technology or partnering with external firms to Energy (FORCE). In 2016, Cape Sharp Tidal reach new markets. For SMEs, most often the deployed the largest in-stream tidal turbine (2 best way to first enter a market is to partner with MW) and there are future plans to deploy more another company. The partner should have a turbines in the Bay of Fundy. Nova Scotian new set of skills and product offerings to make a innovation in tidal energy will create stronger co-venture. Another method is to sell opportunities for investment and will advance to or partner with a company that is already the technological development of related doing business in the market. This is especially supplies and services. Australia and Denmark are true for mature and heavily competitive markets in the infancy stages of tidal energy research. with established companies such as Malaysia. As These countries may be an attractive market for well, working with a market distributor or agent exports for Nova Scotia companies involved in will be useful (and in most cases required) for tidal energy. countries where Nova Scotian companies lack In other areas of renewable energy, Nova Scotia Abbreviations: also has the opportunity for technology transfer from
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