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PETROLEUM DIRECTORY: Hanover Canada: Comprehensive, innovative oil patch solutions Canadians continually develop new technologies to enhance energy development; Albertans have history
of world-class, innovative performance Susan Braund Petroleum Directory Contributing Writer
Since the world’s first oil well was drilled in Oil Springs, Ontario, Canada, in 1857, Canadians have had oil fever. They have designed, built and now operate a huge network of pipelines and a natural gas pipeline system that supplies 45 percent of North American natural gas requirements, according to the Alberta Department of Economic Development, and they continue to be at the forefront of technological change in the industry.
With its vast reserves of oil and natural gas, Alberta ranks as one of the world’s top energy producers, trading with more than 150 countries. The province’s economy and technology infrastructure is based on the oil and gas industry. One Alberta company keeping pace with needs of the oil patch is Hanover Canada, a manufacturer and worldwide supplier of quality oil and gas production equipment, natural gas compression services, treatment services, compressor fabrication, and measurement services. Operating in the Western Hemisphere, including Argentina, Venezuela, Mexico and Canada, the company is expanding into Europe, Asia, and Australia.
Since 1997, the Calgary, Alberta-based Hanover Canada, in association with fabricator Hanover Maloney, has been doing business in complementary arenas: natural gas compression leasing and used unit sales and oil and gas production equipment.
“We’re dedicated to the rental, leasing and lease-purchase of compression and production equipment for the Canadian oil and gas industry,” says Hanover’s Country Manager Rod Saville. “We have a variety of compressors, both screw compression packages and reciprocating gas compressors and we’re capable of providing process, mechanical and instrument design engineering for any production equipment projects, including industry standard separators, heaters, and dehydrators. Just tell us what you need done and we’ll get it done. Hanover has the resources for your natural gas compression and processing needs.”
Saville started in the engineer services industry in 1991, doing vibration/pulsation control on reciprocating gas compressors. After several years he took a position at the Sable Offshore Energy Project as mechanical engineer with responsibilities in design, construction, installation and commissioning. He joined Hanover three years ago as operations manager overseeing the lease fleet and received a promotion to country manager in 2004. Hanover Maloney fabrication shop In July 2000, Hanover acquired the Calgary-based 40-year-old Canadian firm Maloney Inc., forming Hanover Maloney. The fabrication shop, with its staff of qualified engineers, designers, drafts people, manufacturing personnel and support staff, has established a reputation worldwide for its skid mounted dehydration units, sulphur recovery plants and gas treating facilities.
Hanover Maloney’s product line consists of medium to large comprehensive oil and gas production facilities including heaters, separators, dehydrators, oil emulsion treaters, free water knock outs, slug catchers, coalescers, precipitators, production systems, gas sweetening units, sulphur recovery plants, dew-point control and hydrocarbon recovery plants, and custom design processing packages.
Technology engineers and designers have developed extensive computer-based process and design programs to ensure the highest quality and most reliable end products. In-house quality assurance staff facilities are above and beyond specifications required by Alberta Boiler and Safety Association and American Society of Mechanical Engineers. Also, API and ASME code equipment can be manufactured to comply with NACE and 14C offshore specifications.
“There is lots of design expertise in the Calgary shop. It’s one of several in the Hanover system that can produce design/manufacturing services for domestic and international customers. That’s one of the advantages of being part of a large company — the depth of services. The shop is a cost center that can build things expertly for customers all over the world. It’s known as a high-spec, capable shop. Hanover Canada is actually a customer of the shop.” Lease fleet Hanover Canada owns and operates a fleet of 170 compressor units, ranging from 50 hp to 1600 hp.
“Hanover has the largest compressor lease fleet at 3.7 million hp worldwide. We’re a little piece of that with 85,000 hp, the largest lease fleet in Canada,” says Saville. “Leasing is a growing field in Canada. We’re hoping it will follow the U.S. model with end users doing much more gas compressor leasing. Compressors are depreciating assets, and site specific. If the end users will lease vehicles, they should start looking at when it’s attractive to lease compression. We’re always working towards understanding the lease vs. purchase point better ourselves to help our customers.” Stocking program Years of experience has provided Hanover with data about the most common industry needs, which led to the company’s newly launched stocking program, offering packaged, ready-to-go standard dehydration and separation packages for quick delivery. “If a client says they need it in two weeks, we can now offer delivery right away. If they need a set up with a two-inch ball valve and we have a stock package with a 1.5-inch valve, they’ll usually say OK. It’s a good product with good prices in a competitive market. Hanover’s business is solving customers’ problems and assisting them to improve their operations and meet their goals.”
Saville contends that Hanover Canada stands above its competition in three ways: availability, amounts of equipment and quick delivery. “Our lease fleet has the most equipment ready to go of anyone in the game and we’re working towards the same with our stocking program. As quick as customers can get a truck to the yard, they’re ready to go. Hanover can provide a range of products. Eventually we’ll be a one-stop shop.” Challenges Hanover started small in 1990 and quickly grew their lease fleet in the United States. This further led into acquiring similar companies, 49 acquisitions in 11 years. Now the company has reached critical mass and it’s time to standardize.
“Our biggest opportunity is bringing the company together. Hanover is a big machine with offices in the UK, Italy, Venezuela, Argentina, Canada and the United States among others,” says Saville. “ Our CEO, Chad Deaton, is implementing a large measure to help the company act as one well-oiled machine and we want to be able to channel our expertise through our international VPs and be more cost effective in more developed arenas … It’s an ongoing effort.” The cornerstone of the effort is a new computer system that allows bearers of company expertise to travel from one venue to another and use familiar, consistent processes.
“We’ve basically implemented it in Canada, and are starting to see some of the synergy happening, some cross pollination of offices using the same processes.”
Editor’s note: Susan Braund owns Firestar Media Services in Anchorage, Alaska.
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