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AMEC wins 2nd Petrochina Dushanzi contract
ple. This comes only one year after the company won two other management contracts for wastewater treatment plants in Hiroshima and Saitama, near Tokyo. The 17.8 million threeyear contract was awarded by Chiba prefecture through a tender. The plant originally came into operation in 1994. Treatment includes prolonged aeration, denitrification and rapid filtration, thickening and sludge dehydration, and sludge incineration.
SKANSKA TO CONSTRUCT DRINKING WATER PLANT IN NY Skanska has secured its largest order in the US to date - a US$1.04 billion contract for work on the US$1.3 billion upgrade of the Croton Water Filtration Plant in New York for the New York City Department of Environmental Protection. The Croton plant, with a capacity to treat 1.2 million cubic meters of water per day (320 MGD), is one of the facilities that supplies the City of New York with drinking water. Skanska’s assignment includes installation of machinery and piping as well as control equipment. The project is a turnkey delivery and Skanska will also be responsible for start-up and commissioning but not for meeting projected design criteria of the treated water. The project is being carried out in a joint venture with Tully Construction, which has the remaining 20% of the contract. The project starts later this summer. Construction work is scheduled to be completed in 50 months and the start-up phase is expected to take an additional six months. Skanska is currently building and upgrading six water treatment plants in New York.
Pump Industry Analyst
The total order value of the projects under way is about US$1 billion, excluding the new contract.
The initial phase is expected to be fully operational by the end of 2009.
OIL & GAS CH2M HILL TO DESIGN CALIFORNIAN AWPF CH2M HILL is to manage the design of an advanced water purification facility (AWPF) for the City of Oxnard in California. The plant will provide the city with reclaimed water that can be used for landscape and agricultural irrigation, industrial process water and groundwater recharge. The APWF project is part of Oxnard’s Groundwater Recovery Enhancement and Treatment (GREAT) program, whose focus is to use existing water resources more efficiently. A major component of the GREAT program is the use of recycled water for multiple beneficial uses including irrigation of edible food crops, landscape irrigation, injection into the groundwater basin that forms a barrier to seawater intrusion and other possible industrial uses. The recycled water for reuse will be generated by the new AWPF. The source of the recycled water will be the existing city water pollution control facility which has a capacity of 32.5 million gallons per day. The AWPF will treat the secondary water from the city water pollution control facility using a multiple-barrier treatment train consisting of microfiltration/ ultrafiltration, reverse osmosis and ultraviolet-light-based advanced oxidation processes. The project will be constructed in two phases, with capacity of the initial phase at 6.25 million gallons per day. The capacity during the build-out phase is expected to reach 25 million gallons per day.
JACOBS RECEIVES CANADIAN OIL SANDS BITUMEN CONTRACT Jacobs Engineering Group Inc is to provide engineering design and procurement services for the Utilities and Off-sites (U&O) component of the bitumen production scope of Fort Hills Energy LP’s Fort Hills project. The mine is located in Alberta’s Athabasca oil sands area, approximately 90 km north of Fort McMurray, Canada. The U&O scope includes key systems such as cogeneration of power and steam, water, utilities, underground systems, and the tank farm. The bitumen production facility will extract the recoverable bitumen found in the area’s oil sands deposits. The work will start immediately with confirmation of the completed Design Basis Memorandum and associated cost estimate, and will be undertaken from Jacobs’ Calgary, Alberta, office, with support provided by Jacobs’ Raleigh, North Carolina office for the cogeneration scope of the work.
FW TO EXPAND ITALIAN GAS COMPLEX Foster Wheeler Italiana SpA has been awarded a contract by ERG Raffinerie Mediterranee (ERGMED) for engineering, procurement assistance and construction management services for the expansion of the integrated gasification combined cycle (IGCC) complex at ERGMED’s Priolo refinery in Sicily.
Foster Wheeler, in a joint venture, designed and built the original IGCC plant, which transforms refinery residues into synthesis gas, which is burned to produce more than 550 MW of electricity. Completed in 2000, this was the first IGCC plant in the world to use asphalt as a feedstock. As part of the expansion of the IGCC complex, a third gasifier will be added. The new gasifier will use gasification technology licensed by General Electric. Associated facilities will be added to the existing gasifiers and new pressure swing absorption and membrane packages will be installed in order to produce 20 000 nominal cubic meters per hour of hydrogen. With the addition of the third train, the total gasification capacity will be 146.5 tonnes per hour. The project is expected to reach mechanical completion by the second quarter of 2009.
PETROCHEMICALS AMEC WINS 2ND PETROCHINA DUSHANZI CONTRACT Petrochina Dushanzi Petrochemical Co has appointed AMEC as the Integrated Project Management Team (IPMT) contractor for the management of safety, health and environmental and quality assurance and control on the Dushanzi Refinery and Ethylene Technical Reformation project in western China. The multi-million dollar contract begins immediately and will run for two years. This is AMEC’s second major contract on the US$3.5
3
MARKET PROSPECTS
May 2007
Pump Industry Analyst
MARKET PROSPECTS
billion petrochemical expansion project which is located in the Xinjiang Autonomous Region. The company was appointed in August 2005 to provide project management, engineering, planning, cost management, safety, health and environment, quality assurance and other related consultancy service together with its proprietary project management software, Convero.
AKER KVAERNER SELECTED FOR PTA PROJECT IN BRAZIL Aker Kvaerner is to provide the basic and detailed engineering design and offshore procurement services for PetroquímicaSuape’s new Purified Terephthalic Acid (PTA) plant, to be built at the Port of Suape, Pernambuco, in North East Brazil. Aker Kvaerner has signed an early works contract with PetroquímicaSuape for the development of purchase orders for the long delivery equipment items and technical advisory services. The new plant will produce 640 000 tpa of PTA and is scheduled for start-up at the end of 2009.
FLUOR WINS US$1BN CONTRACT FOR SAUDI ACETYLS COMPLEX Fluor Corp is to provide engineering, procurement, construction management and precommissioning services to Saudi International Petrochemical Co Ltd for an acetyls complex in Jubail, Saudi Arabia, under a billion-dollar contract. The project scope includes the main plant, which will
4
May 2007
manufacture acetic acid and vinyl acetate monomer, a high-end specialty plastic for clients, and a new utilities plant. Construction has already started with a target completion of December 2008. Fluor’s Calgary office will provide project management, procurement and design of the vinyl acetate monomer and utilities plants; its Greenville, South Carolina office will provide acetic acid plant design, and its New Delhi office will provide detailed engineering.
Italy, with the support of the center in Shanghai, China, will execute the contract in a team integrated with the client. This contract comes after Technip completed the front-end engineering design (FEED) contract work in 2006 for the same plant. The plant is expected to come on stream in the first half of 2009.
CHEMICALS
Saudi Aramco and The Dow Chemical Co have signed a detailed memorandum of understanding for the construction, ownership and operation of a world-scale chemicals and plastics production complex in Saudi Arabia, named the Ras Tanura Integrated Project. The two companies will now enter the final negotiation phase for the formation of a joint venture company to build, own and operate the facility to be located near Ras Tanura in Saudi Arabia’s Eastern Province. The Ras Tanura petrochemical joint venture will be operationally integrated with Saudi Aramco’s Ras Tanura Refinery complex and its Ju’aymah gas processing plant, two of the largest facilities of their kind in the world. The latter two facilities will supply feedstock to the joint venture and continue to be owned and operated by Saudi Aramco. The proposed JV partnership will bring together the world’s largest oil company with the world’s leading chemicals and plastics producer and marketer. The Ras Tanura integrated complex will produce an extensive and diversified slate of plastics and chemicals and introduce new value chains and performance prod-
BASF EXPANDS THF CAPACITY AT LUDWIGSHAFEN BASF is expanding its annual capacity for intermediate tetrahydrofuran (THF) by 30 000 tons at its Ludwigshafen site in Germany. The expansion will put the company’s total annual THF capacity at 210 000 metric tons from the end of 2007. BASF makes THF in Europe, NAFTA and Asia.
TECHNIP SELECTED FOR CHINESE BYACO ACETIC ACID PLANT Technip has been awarded an engineering, procurement and construction management (EPCM) services contract by BP-YPC Acetyls Co (Nanjing) Ltd (BYACO), the 50/50 joint venture between BP and Sinopec/YPC, for an acetic acid plant located in Nanjing, Jiangsu province, China. This plant will have a capacity of 500 000 tons per year of acetic acid and will be based on BP’s Cativa technology. Technip’s operations and engineering centre in Rome,
SAUDI ARAMCO, DOW SIGN MOU FOR GRASSROOTS COMPLEX
ucts to Saudi Arabia. When fully operational, the new complex will be one of the largest grassroots plastics and chemicals production facilities in the world. The Ras Tanura petrochemical complex will produce a broad range of both basic and performance products, including ethylene, propylene, aromatic and chlorine derivatives. Initially, the project scope includes world-scale production units for polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride monomer, polyurethane components, epoxy resins, polycarbonate, amines and glycol ethers.
PULP & PAPER ANDRITZ TO UPGRADE BRAZILIAN MILL Andritz is to supply a complete fiberline, pulp drying/baling plant and white liquor plant for the world’s largest pulp mill to be built in Brazil. The design capacity of this greenfield bleached eucalyptus market pulp mill is 1 250 000 t/y. Start-up is scheduled for 2009. The order is valued at more than 200 million. The order was placed by Poyry Empreendimentos Industriais SA, the contractor chosen by Chamflora, a subsidiary of International Paper, to build the mill at the Três Lagoas site in Brazil’s Mato Grosso do Sul state. International Paper recently transferred this project to Votorantim Celulose e Papel (VCP) as part of an asset exchange between the two companies. Andritz will provide the technology, equipment, basic and detailed engineering, electromechanical erection, erection supervision, start-up and training.
SKANSKA TO CONSTRUCT DRINKING WATER PLANT IN NY Skanska has secured its largest order in the US to date - a US$1.04 billion contract for work on the US$1.3 billion upgrade of the Croton Water Filtration Plant in New York for the New York City Department of Environmental Protection. The Croton plant, with a capacity to treat 1.2 million cubic meters of water per day (320 MGD), is one of the facilities that supplies the City of New York with drinking water. Skanska’s assignment includes installation of machinery and piping as well as control equipment. The project is a turnkey delivery and Skanska will also be responsible for start-up and commissioning but not for meeting projected design criteria of the treated water. The project is being carried out in a joint venture with Tully Construction, which has the remaining 20% of the contract. The project starts later this summer. Construction work is scheduled to be completed in 50 months and the start-up phase is expected to take an additional six months. Skanska is currently building and upgrading six water treatment plants in New York.
Pump Industry Analyst
The total order value of the projects under way is about US$1 billion, excluding the new contract.
The initial phase is expected to be fully operational by the end of 2009.
OIL & GAS CH2M HILL TO DESIGN CALIFORNIAN AWPF CH2M HILL is to manage the design of an advanced water purification facility (AWPF) for the City of Oxnard in California. The plant will provide the city with reclaimed water that can be used for landscape and agricultural irrigation, industrial process water and groundwater recharge. The APWF project is part of Oxnard’s Groundwater Recovery Enhancement and Treatment (GREAT) program, whose focus is to use existing water resources more efficiently. A major component of the GREAT program is the use of recycled water for multiple beneficial uses including irrigation of edible food crops, landscape irrigation, injection into the groundwater basin that forms a barrier to seawater intrusion and other possible industrial uses. The recycled water for reuse will be generated by the new AWPF. The source of the recycled water will be the existing city water pollution control facility which has a capacity of 32.5 million gallons per day. The AWPF will treat the secondary water from the city water pollution control facility using a multiple-barrier treatment train consisting of microfiltration/ ultrafiltration, reverse osmosis and ultraviolet-light-based advanced oxidation processes. The project will be constructed in two phases, with capacity of the initial phase at 6.25 million gallons per day. The capacity during the build-out phase is expected to reach 25 million gallons per day.
JACOBS RECEIVES CANADIAN OIL SANDS BITUMEN CONTRACT Jacobs Engineering Group Inc is to provide engineering design and procurement services for the Utilities and Off-sites (U&O) component of the bitumen production scope of Fort Hills Energy LP’s Fort Hills project. The mine is located in Alberta’s Athabasca oil sands area, approximately 90 km north of Fort McMurray, Canada. The U&O scope includes key systems such as cogeneration of power and steam, water, utilities, underground systems, and the tank farm. The bitumen production facility will extract the recoverable bitumen found in the area’s oil sands deposits. The work will start immediately with confirmation of the completed Design Basis Memorandum and associated cost estimate, and will be undertaken from Jacobs’ Calgary, Alberta, office, with support provided by Jacobs’ Raleigh, North Carolina office for the cogeneration scope of the work.
FW TO EXPAND ITALIAN GAS COMPLEX Foster Wheeler Italiana SpA has been awarded a contract by ERG Raffinerie Mediterranee (ERGMED) for engineering, procurement assistance and construction management services for the expansion of the integrated gasification combined cycle (IGCC) complex at ERGMED’s Priolo refinery in Sicily.
Foster Wheeler, in a joint venture, designed and built the original IGCC plant, which transforms refinery residues into synthesis gas, which is burned to produce more than 550 MW of electricity. Completed in 2000, this was the first IGCC plant in the world to use asphalt as a feedstock. As part of the expansion of the IGCC complex, a third gasifier will be added. The new gasifier will use gasification technology licensed by General Electric. Associated facilities will be added to the existing gasifiers and new pressure swing absorption and membrane packages will be installed in order to produce 20 000 nominal cubic meters per hour of hydrogen. With the addition of the third train, the total gasification capacity will be 146.5 tonnes per hour. The project is expected to reach mechanical completion by the second quarter of 2009.
PETROCHEMICALS AMEC WINS 2ND PETROCHINA DUSHANZI CONTRACT Petrochina Dushanzi Petrochemical Co has appointed AMEC as the Integrated Project Management Team (IPMT) contractor for the management of safety, health and environmental and quality assurance and control on the Dushanzi Refinery and Ethylene Technical Reformation project in western China. The multi-million dollar contract begins immediately and will run for two years. This is AMEC’s second major contract on the US$3.5
3
MARKET PROSPECTS
May 2007
Pump Industry Analyst
MARKET PROSPECTS
billion petrochemical expansion project which is located in the Xinjiang Autonomous Region. The company was appointed in August 2005 to provide project management, engineering, planning, cost management, safety, health and environment, quality assurance and other related consultancy service together with its proprietary project management software, Convero.
AKER KVAERNER SELECTED FOR PTA PROJECT IN BRAZIL Aker Kvaerner is to provide the basic and detailed engineering design and offshore procurement services for PetroquímicaSuape’s new Purified Terephthalic Acid (PTA) plant, to be built at the Port of Suape, Pernambuco, in North East Brazil. Aker Kvaerner has signed an early works contract with PetroquímicaSuape for the development of purchase orders for the long delivery equipment items and technical advisory services. The new plant will produce 640 000 tpa of PTA and is scheduled for start-up at the end of 2009.
FLUOR WINS US$1BN CONTRACT FOR SAUDI ACETYLS COMPLEX Fluor Corp is to provide engineering, procurement, construction management and precommissioning services to Saudi International Petrochemical Co Ltd for an acetyls complex in Jubail, Saudi Arabia, under a billion-dollar contract. The project scope includes the main plant, which will
4
May 2007
manufacture acetic acid and vinyl acetate monomer, a high-end specialty plastic for clients, and a new utilities plant. Construction has already started with a target completion of December 2008. Fluor’s Calgary office will provide project management, procurement and design of the vinyl acetate monomer and utilities plants; its Greenville, South Carolina office will provide acetic acid plant design, and its New Delhi office will provide detailed engineering.
Italy, with the support of the center in Shanghai, China, will execute the contract in a team integrated with the client. This contract comes after Technip completed the front-end engineering design (FEED) contract work in 2006 for the same plant. The plant is expected to come on stream in the first half of 2009.
CHEMICALS
Saudi Aramco and The Dow Chemical Co have signed a detailed memorandum of understanding for the construction, ownership and operation of a world-scale chemicals and plastics production complex in Saudi Arabia, named the Ras Tanura Integrated Project. The two companies will now enter the final negotiation phase for the formation of a joint venture company to build, own and operate the facility to be located near Ras Tanura in Saudi Arabia’s Eastern Province. The Ras Tanura petrochemical joint venture will be operationally integrated with Saudi Aramco’s Ras Tanura Refinery complex and its Ju’aymah gas processing plant, two of the largest facilities of their kind in the world. The latter two facilities will supply feedstock to the joint venture and continue to be owned and operated by Saudi Aramco. The proposed JV partnership will bring together the world’s largest oil company with the world’s leading chemicals and plastics producer and marketer. The Ras Tanura integrated complex will produce an extensive and diversified slate of plastics and chemicals and introduce new value chains and performance prod-
BASF EXPANDS THF CAPACITY AT LUDWIGSHAFEN BASF is expanding its annual capacity for intermediate tetrahydrofuran (THF) by 30 000 tons at its Ludwigshafen site in Germany. The expansion will put the company’s total annual THF capacity at 210 000 metric tons from the end of 2007. BASF makes THF in Europe, NAFTA and Asia.
TECHNIP SELECTED FOR CHINESE BYACO ACETIC ACID PLANT Technip has been awarded an engineering, procurement and construction management (EPCM) services contract by BP-YPC Acetyls Co (Nanjing) Ltd (BYACO), the 50/50 joint venture between BP and Sinopec/YPC, for an acetic acid plant located in Nanjing, Jiangsu province, China. This plant will have a capacity of 500 000 tons per year of acetic acid and will be based on BP’s Cativa technology. Technip’s operations and engineering centre in Rome,
SAUDI ARAMCO, DOW SIGN MOU FOR GRASSROOTS COMPLEX
ucts to Saudi Arabia. When fully operational, the new complex will be one of the largest grassroots plastics and chemicals production facilities in the world. The Ras Tanura petrochemical complex will produce a broad range of both basic and performance products, including ethylene, propylene, aromatic and chlorine derivatives. Initially, the project scope includes world-scale production units for polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride monomer, polyurethane components, epoxy resins, polycarbonate, amines and glycol ethers.
PULP & PAPER ANDRITZ TO UPGRADE BRAZILIAN MILL Andritz is to supply a complete fiberline, pulp drying/baling plant and white liquor plant for the world’s largest pulp mill to be built in Brazil. The design capacity of this greenfield bleached eucalyptus market pulp mill is 1 250 000 t/y. Start-up is scheduled for 2009. The order is valued at more than 200 million. The order was placed by Poyry Empreendimentos Industriais SA, the contractor chosen by Chamflora, a subsidiary of International Paper, to build the mill at the Três Lagoas site in Brazil’s Mato Grosso do Sul state. International Paper recently transferred this project to Votorantim Celulose e Papel (VCP) as part of an asset exchange between the two companies. Andritz will provide the technology, equipment, basic and detailed engineering, electromechanical erection, erection supervision, start-up and training.