Geopolitics is Changing Interface Management Requirements for Transnational Clean Fuel Projects

Abstract

Under the consensus future development planning through UN SDGs, renewable energy will be the fastest growing source of energy. However, the world has recently witnessed that transition to renewables cannot be fast – European Nations have suffered in winter 2021 – 2022 paying high LNG, Gas and Oil prices partly due to their un-realistic expectations from renewables and partly because of geopolitical interference to stop Nord Stream 2 Gas Pipeline Project from achieving COD. Realistically, the demand for oil and other gaseous fuels will not decline till 2040 and the businesses in oil and gas sector have been operating under strict regulatory oversight. This has made IOCs / NOCs more responsible and sensitive towards reducing environmental and social damage to the society through their operations. Under the world’s quest for Cleaner Energy / Fuels Transition and an over-arching focus on reducing carbon footprint, oil and gas projects are currently more complex. Additional burden due to involvement of SDGs, increased globalization (multi-national interests) and geopolitics is making it difficult for project managers to reasonably manage the risk in Mega Projects.

The changing transnational project management requirements in energy sector call for enhanced capabilities of project managers towards agile project planning & design supported by effective interface management – enabling unrelated entities (systems, equipment, services, software and data) to successfully co-function as part of a larger project asset. Traditionally, interface management is an enabling process that defines, controls, and communicates the information needed by independent project stakeholders for fulfillment of responsibility towards successful project completion across a common boundary. Today, these requirements appear to have crossed the defined project boundries. It is shown in this study that the interface management requirements have gone beyond the traditional view and scope – social and geopolitical convergence of “determinations of world’s political leaders” has been found as an essential interface management aspect affecting success or failure of any transnational clean fuel project – e.g., Nord Stream 2 Gas Pipeline Project.