Atlas Copco Rental Middle East specialises in temporary rental solutions and services for power, air, steam and nitrogen applications in oil & gas, mining and manufacturing industries and power plants. To serve the power requirements of these industries the company maintains a fleet of generators, oil-free and oil-lubricated air compressors, procured internally from Atlas Copco.
Syed Faiyazuddin, regional business development manager, key accounts-specialized applications, Atlas Copco Rental Middle East, describes the company’s target markets in the region.
“Based on an extensive market survey conducted in 2016, we decided to focus on the 100–750kVA segment to add value to our existing customer base at a favourable price point. Over 65% of our business comes from offshore and onshore projects. We’re not interested in the construction sector, which suffers from intense price competition for short-term rentals and payment delays. However, we provide compressors for certain stages of construction. Events is a growing market for us, as companies choose maintain an inventory of rented power equipment for their events throughout the year.”
Atlas Copco Rental Middle East charges a fixed monthly price for its generators, based on capacity requirements. If two 500kVA generators are supplied for a total power requirement of 1000kVA, charges apply to both the generators.
“The total price of the two generators is often comparable to that of a 1000kVA alternative in the market. An increase in generator rental price is compensated easily with the fuel savings from generator synchronisation,” says Syed.
Syed points out that customers are beginning to realise the benefits of power on demand and the in-built synchronisation and programming features of Atlas Copco equipment.
“Fuel costs comprise 70-80% of the operating costs of generators. The cost of the generator does not exceed 25%. So, we’re surprised when customers negotiate on generator rental prices without factoring the cost of diesel. Significant cost savings can be achieved with generator synchronisation, augmented by Atlas Copco’s fuel-efficient gensets. For example, if the power requirement is 5000kVA, we recommend using 10x500kVA units instead of 5x1000kVA units in order to save diesel costs though load sharing. Generator synchronisation also ensures that at 50% power is always available on site, thus eliminating the possibility of a power outage. We can offer up to 16 generator modules for load sharing,” Syed explains.
Fuel saving technologies and configurations for generators are more crucial than ever to lower their operating costs because diesel generators are here to stay, according to Syed.
“Power generator will continue to run on diesel for the foreseeable future, despite the introduction of alternatives such as natural gas. However, the availability, supply and consistency in delivery of natural gas cannot match that of diesel, particularly to remote locations,” says Syed.
According to Syed, oil and gas and prime power applications will be the main drivers of the company’s power rental business. While looking forward to a strong pipeline of oil and gas projects in the Middle East, the company plans to expand into temporary power plants.
“There’s scarcity of power in the Middle East during the summer season. By the time a power plant is completed, the demand often increases by 50–100%. We see a gap in the market for temporary power plants, particularly for remote and war-torn areas without grid connectivity,” says Syed.
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