McDermott in Indonesia

McDermott teams up with Shell to cut emissions from construction ops

Offshore construction and engineering firm McDermott has signed a memorandum of understanding (MOU) with Shell Eastern Petroleum – a subsidiary of Royal Dutch Shell – to collaborate on decarbonising construction and build pathways to a net-zero carbon future.

McDermott's yard in Indonesia; Source: McDermott

McDermott reported on Wednesday that the agreement would enable the two companies to explore opportunities for reducing and eliminating emissions from construction. This can be accomplished through pathways such as low carbon fuels, renewable power, digital solutions, and decarbonising marine construction vessels.

Samik Mukherjee, McDermott’s Executive Vice President and Chief Operating Officer, commented: “Companies such as McDermott and Shell—who have targets to progress towards net-zero emissions by 2050, in step with society—are well-positioned to approach the challenges of lowering emissions together. A pathway to reduce greenhouse gas emissions from construction operations will make significant strides toward net-zero Engineering, Procurement and Construction projects in the future.”

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McDermott set up emission reduction targets in August this year, outlined in its sustainability report. The company aims to reach a 50 per cent reduction in scope 1 and 2 greenhouse gas (GHG) emissions by 2030, as well as a 35 per cent reduction in scope 3 GHG emissions for ten key supply chain categories.

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The firm’s fabrication yards located in Indonesia, China, the Middle East, and Mexico, along with its marine construction vessels, will be key to identifying opportunities to lower emissions and gain operational efficiencies.

Mahesh Swaminathan, McDermott’s Senior Vice President, Asia Pacific, stated: “McDermott’s integrated project delivery enables us to look holistically across our operations for opportunities to reduce emissions. We are looking forward to working with Shell to explore what’s possible and see how our combined expertise delivers more sustainable operations.”

Earlier this week, McDermott said that with the close-out of onshore commissioning on the two bridges and flare complete, its team was fully focused on construction close-out on the TEG module in preparation for the onshore commissioning for TotalEnergies’ Tyra redevelopment project in the North Sea. The sail away is planned for next year.

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The completion of the Tyra project will enable the supply of around 60,000 barrels of oil equivalent per day at peak production.