INTERVIEW WITH H. MICKEY BARRETT ON GULF COAST ENERGY PROJECTS

How is Raba Kistner thriving?
By breaking down barriers and working with stakeholders across the value chain, including competitors, Raba Kistner is emerging as a genuine problem solver and progress facilitator in key energy projects along the Gulf Coast.

The challenge – Raba Kistner, as a leading engineering consultant based in Texas, knows all too well the challenge of preparing sites for LNG facilities along the Gulf Coast.

These locations are characterized by saturated muck, silts and clays that make it difficult for most equipment to maneuver without special measures. Site development can take years to complete before vertical construction can commence.

Raba Kistner was left at a crossroads. The company decided to grasp the situation as an opportunity – a proactive approach was needed, one which would enable rapid site mobilization and access across challenging locations.

The company knew it had to collaborate with operators, contractors and even competitors. Doing so would drive these LNG projects forward and position Raba Kistner as a go-to problem solver.

The solution – In 2021, the company devised a radical strategy to launch its energy-focused business.
It is centered around an approach to energy projects and construction contracts that in-volves three steps – follow the money, connect the dots, and exploit your differentiators.

The first step, following the money, is all about Raba Kistner doing its homework – chiefly, leveraging verified data and taking advantage of its key stakeholders’ information. For example, through networking and research, the company found that there was a US$280bn backlog of construction projects along the Gulf Coast. These massive LNG facilities, with individual projects ranging from US$12bn to over US$30bn and construction durations of three to eight years, were driven by the need for port facilities for LNG transportation. With construction materials testing and inspection services typically accounting for 1.25% to 1.5% of construction costs, the potential opportunity for Raba Kistner was estimated to be around US$350m in fees.

Step two is the main collaboration piece. In terms of the Gulf Coast opportunity, Raba Kistner’s Energy Committee met for a day of strategic planning in the summer of 2021. The committee meticulously mapped out all the known LNG projects, assessing their status, such as final investment decisions (FID) or Federal Energy Regulatory Commission (FERC) approvals, and identified the likely awarded engineering, procurement and construction (EPC) contractors

Armed with this knowledge, the company explored existing relationships, strategically partnering with Fugro, geotechnical engineers with which it was already teamed with on shortlisted projects to pursue, and approaching firms such as Thompson Engineering, Braun Intertec, and Tolunay Wong for potential collaborations. This collaborative approach was key to securing business wins and providing the necessary value to drive these critical projects forward.

Step three entails leveraging differentiators created by teaming up with supply chain partners, including competitors favored by owners and EPCs. In doing so, Raba Kistner is narrowing the fi eld and presenting clients with their top consultant choices without forcing them to choose one over the other. To further solidify its position, the company recruited two former Braun Intertec execs who had previously collaborated on the Calcasieu Pass LNG project. Shortly after this, it acquired Braun’s Gulf operations, equipment and over 60 staff members, creating a regional presence larger than some of its biggest offices.

This has proven to be a major differentiator. In addition, Raba Kistner and their teammates developed a technique utilizing fi field exploration vehicles and cone penetration testing (CPT) to eliminate excessive laboratory and fi eld testing for major site civil works, providing instantaneous results and accelerating project schedules. This innovative approach has now become the norm adopted by major EPCs on LNG projects across Texas and Louisiana, driving substantial growth for Raba Kistner’s CPT truck and track-mounted rig operations.

This strategy has already delivered significant returns. At the beginning, Raba Kistner’s goal for its energy business was to have one major project awarded in 2022 and a minimum of two to three major projects by the year end of 2023. Both goals were exceeded – the company now has six contracts in progress with more on the way.

Across the whole organization, 2023 was the strongest year in Raba Kistner’s history in terms of fee growth, profitability, business diversification and number of internal career promotions. With its energy division up and running, the firm could be set to break even more records in the near future.