Troubled key player ditched from record $35bn offshore wind push
Tennet says Petrofac to be replaced in consortium to help deliver 28GW of offshore wind transmission links
Troubled contractor Petrofac has been ditched from a massive programme to connect future European offshore wind farms to the grid, with a replacement now set to step in, networks giant Tennet confirmed.
The six-project deal was worth about €13bn to its consortium, Hitachi Energy said at the time.
Debt-laden offshore oil and gas contracting specialist Petrofac has since 2024 been battling to restructure its finances, however, and today Tennet confirmed it is off the programme.
“Since Petrofac has not been able to meet its contractual obligations, Tennet has exercised its right to partial termination of the contract related to the Petrofac scope. At the same time, a solution has been put in place involving a consortium of Hitachi Energy and a replacement contractor.”
"We are pleased to continue working with Tennet and we have agreed on a contingency plan to provide business continuity."
Others given deals in 2023 included GE, Siemens Energy and Sembcorp.
The 2GW programme awarded a total of 14 projects to connect future wind farms in the Dutch and German North Sea, with deadlines between 2029 and 2032.
Tennet said Hitachi Energy and the replacement contractor will be responsible for the Dutch offshore grid connections IJmuiden Ver Alpha, Nederwiek 1, Nederwiek 3, Doordewind 1, Doordewind 2, plus LanWin5 in German waters.
“Tennet’s leading objective, shared by the new consortium, is to meet its legal and societal tasks and deliver the offshore grid connection projects as outlined” by Dutch and German national plans.
Petrofac today warned its own shareholders that its current restructuring plan “is no longer deliverable in its current form” in light of the Tennet move.
“Petrofac confirms it has received notification from Tennet terminating its scope of work on the 2GW programme with immediate effect,” it told investors.
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