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Black & Veatch supports Entergy Nuclear
October 2006
LAUNCH OF ASIA-PACIFIC WATER FORUM Former Japanese Prime Minister Yoshiro Mori has led the launch of a regional network dedicated to tackling the most pressing water related challenges facing Asia and the Pacific. Launched at Asian Development Bank’s Water Financing Program Conference, the Asia-Pacific Water Forum (APWF) will contribute to sustainable water management and attainment of the Millennium Development Goals (MDGs) in Asia and the Pacific. It aims to achieve this by capitalising on the region’s diversity and rich history of experience and by boosting investments, building capacity, and enhancing cooperation
in the water sector at the regional level and beyond. Mori is the new president of the Japan Water Forum (JWF), which serves as secretariat to APWF. ADB has been designated as the lead organisation for the Forum’s Priority Theme of water financing, which aims to increase investments for water infrastructure and human resource development. In response to international calls for increased financing, ADB’s Water Financing Program 2006–2010 will deliver “a substantial package of investment, reform, and capacity development from which the forum will be able to leverage several lessons and opportunities,” Kuroda said.
VEOLIA WATER SIGNS RUSSIAN PARTNERSHIP AGREEMENT Veolia Water is to partner with the Russian companies Evraziysky (investment company) and EWP (Eurasian Water Partnership, management company) for the development of water and wastewater projects in Russia. Under the framework agreement Veolia Water will bring its international experience of the management of water and wastewater service contracts, in particular for projects that involve international finance, and its technical, operational and management expertise. Evarziysky and EWP will bring their experience of the Russian water market, based on their presence in the towns of Rostov sur-le-Don and Omsk. EWP and Veolia Water will develop a competence centre for the water sector in Russia. Veolia Water has been present in Russia for 10 years. The company operates in St Petersburg where it is service provider to Vodokanal StPetersburg.
BLACK & VEATCH ACQUIRES MJ GLEESON’S WATER BUSINESS Black & Veatch has completed the acquisition of MJ Gleeson’s water business. With annual revenues of nearly £200 million, the deal more than doubles the size of Black & Veatch’s existing UK water operations and brings added project delivery capabilities to clients. Black & Veatch now has a global water business with nearly £530 million in revenues.
POWER GENERATION ALSTOM SIGNS 110 MN SOUTH AFRICAN UPGRADE Alstom has won a 110 million contract to refurbish the 2100 MW Arnot coal-fired power plant in South Africa, and increase its power output by 300 MW to 2400 MW. The plant is owned by state-owned utility company Eskom. For each of Arnot’s six steam generating units, Alstom will carry out a complete retrofit for the high pressure and intermediate pressure steam turbines, a capacity upgrade of the low pressure steam turbine and the replacement and upgrade of associated turbine side pumps and auxiliaries. In addition, Alstom will carry out major upgrading works to the boiler plant, including supply of new pressure part components, new burners, and modification to other equipment such as the coal mills and classifiers, fans and heaters. The first unit is scheduled to be completed by December
2007 and the last December 2010. The Arnot increase project is combined capacity and retrofit project Africa.
unit by capacity the first increase in South
AREVA, MHI ENTER NUCLEAR ALLIANCE Areva and Mitsubishi Heavy Industries Ltd (MHI) are to collaborate in the area of nuclear energy. As a first step, the two companies have already agreed to develop a 3rd-generation 1000 MWe nuclear power plant expected to attract great market demand. The agreement covers other fields of possible cooperation such as procurement, services, fuel cycle and new types of reactors. The two groups already worked together in constructing the Rokkasho Reprocessing Plant in Japan, leveraging AREVA’s technologies developed for the La Hague Reprocessing Plant in France.
BLACK & VEATCH SUPPORTS ENTERGY NUCLEAR Entergy Nuclear has selected Black & Veatch to help with preparations to apply for a combined construction and operating license for a possible new nuclear unit to be located adjacent to Entergy Gulf States’ River Bend nuclear generating facility near St Francisville, Louisiana. Black & Veatch will supplement a special Entergy Nuclear team, which is evaluating the value and benefits of nuclear plant development for Entergy’s customers as a way to increase the system's generation capability, fuel diversity and fuel security,
3
MARKET PROSPECTS
total project will cost 12.5 million. Water supply is also a serious problem in Poti, located on the Black Sea in western Georgia and the country’s largest port. The city’s 45 000 inhabitants currently receive water for only six hours every other two days. A 2.5 million EBRD loan to the Republic of Georgia and on-lent to the local water company Tskalkanali will be used to construct a new 47 km water pipeline, for the rehabilitation of the existing water network, constructed in 1939, and the installation of meters in all households. Total project cost will be 12.3 million. The projects benefited from EU grant funds for preparation. Capital grants will come from the Swedish International Development Co-Operation Agency (SIDA), the US Millennium Challenge Corp and the European Union Water Initiative.
Pump Industry Analyst
October 2006
Pump Industry Analyst
MARKET PROSPECTS
while providing a reliable, affordable, stable, safe and clean source of energy. Hutchinson said Black & Veatch's specialized support work will include safety analyses, system descriptions, environmental impact and many other technical and operational studies that must be completed before Entergy can submit an application for a combined construction and operating license. Entergy’s application to the NRC is now scheduled for submittal in early 2008.
PULP & PAPER METSO TO SUPPLY TISSUE LINE TO RUSSIA Metso Paper will supply a complete tissue production line to Syktyvkar Tissue Group Ltd. The line is scheduled to start up at their Syktyvkar mill in the republic of Komi during autumn 2007. The Metso delivery comprises a complete tissue production line with stock preparation equipment and an Advantage DCT 100 tissue machine. The 2.7-metre-wide tissue machine has a design speed of 1600 m/min and a daily production of 60–90 tons of tissue. The order also comprises quality control and distributed control systems by Metso Automation. This is the 9th Advantage DCT 100 tissue machine sold by Metso Paper since the Advantage DCT concept was launched in December 2005.
NIPPON DAISHOWA TO BUILD NEW BOILER Nippon Daishowa Paperboard Co Ltd is to build a ¥10.3 billion coal fired boiler at its Geibo Mill.
4
When the new boiler goes into operation in December 2008, the mill will no longer use heavy oil for power purposes and will achieve oilfree operation. Energy costs will be cut by changing the fuel from heavy oil, the price of which is rising rapidly, improving the earnings base of Geibo Mill.
CHEMICALS EXXONMOBIL CHEMICAL EXPANDS IN BATON ROUGE ExxonMobil Chemical is to build a new facility at its Baton Rouge, Louisiana, complex to produce specialty compounded products. The investment is part of the company’s global compounding strategy and commitment to provide engineered thermoplastic materials to the automotive and consumer products industries. The Baton Rouge plant will have the capability to manufacture a broad range of commercial compounded products including ExxonMobil Chemical’s Performance Polyolefin grades (compounded polypropylene), Santoprene thermoplastic elastomers and other specialty elastomers. The facility will include a new products centre and organisation that will fully leverage ExxonMobil’s broad range of polymer and compounding technology and work with the company’s global technology organisation to develop, innovate and rapidly deploy new products to the marketplace. Construction is expected to begin in October 2006. The new facility is set to start-up in the second quarter of 2007.
OIL & GAS FW WINS FEED FOR ABU DHABI OILFIELD The Abu Dhabi Co for Onshore Oil Operations (ADCO) has awarded Foster Wheeler International Corp (Abu Dhabi branch) the front-end engineering design (FEED) for the Sahil, Asab and Shah (SAS) oilfield development project in the United Arab Emirates. ADCO plans to undertake the full field development of the SAS maturing fields not only to increase production, but also to enhance the environmental aspects of the fields and to provide adequate facilities for their operations. Foster Wheeler’s UK operations will execute the FEED and will update the basis of design, develop the technical data, specifications and requisitions and provide a detailed cost estimate in order to define the engineering, procurement and construction (EPC) scope of work to enable an invitation to bid for the EPC phase to be prepared and issued. Foster Wheeler will also prepare material requisitions for long lead items and obtain estimated prices from vendors. The FEED is scheduled for completion in mid-2007, after which an EPC contractor will be appointed by ADCO. Commissioning of the project is expected in 2010.
HHI WINS LARGEST SINGLE OFFSHORE ORDER In what is described as the world’s largest offshore oil project in value and scale ever
recorded by a single company, Hyundai Heavy Industries (HHI) is to build offshore oil production facilities, worth US$1.6 billion, for Abu Dhabi Marine Operating Co. The Um Shaif project involves the construction of three fixed platforms of 40 000 tons, subsea pipelines and bridges offshore Abu Dhabi. The project will be completed by 2010 and produce 300 000 barrels of oil and 1.0 billion ft3 of natural gas per day. HHI will carry out all phases of the project on a turnkey basis, ranging from engineering, procurement and installation to commissioning work.
JV WINS SAUDI ARAMCO KHURAIS EPC CONTRACT Saudi Aramco has awarded a Foster Wheeler Energy Ltd and Hyundai Engineering and Construction Co Ltd joint venture a lump-sum turnkey engineering, procurement and construction contract for the Khurais gas facility, part of the Khurais central processing facility in Saudi Arabia. The Khurais gas facility is one of the main contract packages that make up the Khurais Crude Increment Program, which aims to deliver 1.2 million barrels per day (b/d) of Arabian light crude by 2009. The Khurais Crude Increment Program covers three oil fields: Khurais, Abu Jifan and Mazlij. The Khurais gas facility will be designed to process the sour associated gas produced from the three oilfields into a natural gas liquid product and a dry, single-phase sour shipping gas. The plant will process 563 million standard cubic feet per day of sour associated gas and 70 000 b/d of hydrocarbon condensate.
LAUNCH OF ASIA-PACIFIC WATER FORUM Former Japanese Prime Minister Yoshiro Mori has led the launch of a regional network dedicated to tackling the most pressing water related challenges facing Asia and the Pacific. Launched at Asian Development Bank’s Water Financing Program Conference, the Asia-Pacific Water Forum (APWF) will contribute to sustainable water management and attainment of the Millennium Development Goals (MDGs) in Asia and the Pacific. It aims to achieve this by capitalising on the region’s diversity and rich history of experience and by boosting investments, building capacity, and enhancing cooperation
in the water sector at the regional level and beyond. Mori is the new president of the Japan Water Forum (JWF), which serves as secretariat to APWF. ADB has been designated as the lead organisation for the Forum’s Priority Theme of water financing, which aims to increase investments for water infrastructure and human resource development. In response to international calls for increased financing, ADB’s Water Financing Program 2006–2010 will deliver “a substantial package of investment, reform, and capacity development from which the forum will be able to leverage several lessons and opportunities,” Kuroda said.
VEOLIA WATER SIGNS RUSSIAN PARTNERSHIP AGREEMENT Veolia Water is to partner with the Russian companies Evraziysky (investment company) and EWP (Eurasian Water Partnership, management company) for the development of water and wastewater projects in Russia. Under the framework agreement Veolia Water will bring its international experience of the management of water and wastewater service contracts, in particular for projects that involve international finance, and its technical, operational and management expertise. Evarziysky and EWP will bring their experience of the Russian water market, based on their presence in the towns of Rostov sur-le-Don and Omsk. EWP and Veolia Water will develop a competence centre for the water sector in Russia. Veolia Water has been present in Russia for 10 years. The company operates in St Petersburg where it is service provider to Vodokanal StPetersburg.
BLACK & VEATCH ACQUIRES MJ GLEESON’S WATER BUSINESS Black & Veatch has completed the acquisition of MJ Gleeson’s water business. With annual revenues of nearly £200 million, the deal more than doubles the size of Black & Veatch’s existing UK water operations and brings added project delivery capabilities to clients. Black & Veatch now has a global water business with nearly £530 million in revenues.
POWER GENERATION ALSTOM SIGNS 110 MN SOUTH AFRICAN UPGRADE Alstom has won a 110 million contract to refurbish the 2100 MW Arnot coal-fired power plant in South Africa, and increase its power output by 300 MW to 2400 MW. The plant is owned by state-owned utility company Eskom. For each of Arnot’s six steam generating units, Alstom will carry out a complete retrofit for the high pressure and intermediate pressure steam turbines, a capacity upgrade of the low pressure steam turbine and the replacement and upgrade of associated turbine side pumps and auxiliaries. In addition, Alstom will carry out major upgrading works to the boiler plant, including supply of new pressure part components, new burners, and modification to other equipment such as the coal mills and classifiers, fans and heaters. The first unit is scheduled to be completed by December
2007 and the last December 2010. The Arnot increase project is combined capacity and retrofit project Africa.
unit by capacity the first increase in South
AREVA, MHI ENTER NUCLEAR ALLIANCE Areva and Mitsubishi Heavy Industries Ltd (MHI) are to collaborate in the area of nuclear energy. As a first step, the two companies have already agreed to develop a 3rd-generation 1000 MWe nuclear power plant expected to attract great market demand. The agreement covers other fields of possible cooperation such as procurement, services, fuel cycle and new types of reactors. The two groups already worked together in constructing the Rokkasho Reprocessing Plant in Japan, leveraging AREVA’s technologies developed for the La Hague Reprocessing Plant in France.
BLACK & VEATCH SUPPORTS ENTERGY NUCLEAR Entergy Nuclear has selected Black & Veatch to help with preparations to apply for a combined construction and operating license for a possible new nuclear unit to be located adjacent to Entergy Gulf States’ River Bend nuclear generating facility near St Francisville, Louisiana. Black & Veatch will supplement a special Entergy Nuclear team, which is evaluating the value and benefits of nuclear plant development for Entergy’s customers as a way to increase the system's generation capability, fuel diversity and fuel security,
3
MARKET PROSPECTS
total project will cost 12.5 million. Water supply is also a serious problem in Poti, located on the Black Sea in western Georgia and the country’s largest port. The city’s 45 000 inhabitants currently receive water for only six hours every other two days. A 2.5 million EBRD loan to the Republic of Georgia and on-lent to the local water company Tskalkanali will be used to construct a new 47 km water pipeline, for the rehabilitation of the existing water network, constructed in 1939, and the installation of meters in all households. Total project cost will be 12.3 million. The projects benefited from EU grant funds for preparation. Capital grants will come from the Swedish International Development Co-Operation Agency (SIDA), the US Millennium Challenge Corp and the European Union Water Initiative.
Pump Industry Analyst
October 2006
Pump Industry Analyst
MARKET PROSPECTS
while providing a reliable, affordable, stable, safe and clean source of energy. Hutchinson said Black & Veatch's specialized support work will include safety analyses, system descriptions, environmental impact and many other technical and operational studies that must be completed before Entergy can submit an application for a combined construction and operating license. Entergy’s application to the NRC is now scheduled for submittal in early 2008.
PULP & PAPER METSO TO SUPPLY TISSUE LINE TO RUSSIA Metso Paper will supply a complete tissue production line to Syktyvkar Tissue Group Ltd. The line is scheduled to start up at their Syktyvkar mill in the republic of Komi during autumn 2007. The Metso delivery comprises a complete tissue production line with stock preparation equipment and an Advantage DCT 100 tissue machine. The 2.7-metre-wide tissue machine has a design speed of 1600 m/min and a daily production of 60–90 tons of tissue. The order also comprises quality control and distributed control systems by Metso Automation. This is the 9th Advantage DCT 100 tissue machine sold by Metso Paper since the Advantage DCT concept was launched in December 2005.
NIPPON DAISHOWA TO BUILD NEW BOILER Nippon Daishowa Paperboard Co Ltd is to build a ¥10.3 billion coal fired boiler at its Geibo Mill.
4
When the new boiler goes into operation in December 2008, the mill will no longer use heavy oil for power purposes and will achieve oilfree operation. Energy costs will be cut by changing the fuel from heavy oil, the price of which is rising rapidly, improving the earnings base of Geibo Mill.
CHEMICALS EXXONMOBIL CHEMICAL EXPANDS IN BATON ROUGE ExxonMobil Chemical is to build a new facility at its Baton Rouge, Louisiana, complex to produce specialty compounded products. The investment is part of the company’s global compounding strategy and commitment to provide engineered thermoplastic materials to the automotive and consumer products industries. The Baton Rouge plant will have the capability to manufacture a broad range of commercial compounded products including ExxonMobil Chemical’s Performance Polyolefin grades (compounded polypropylene), Santoprene thermoplastic elastomers and other specialty elastomers. The facility will include a new products centre and organisation that will fully leverage ExxonMobil’s broad range of polymer and compounding technology and work with the company’s global technology organisation to develop, innovate and rapidly deploy new products to the marketplace. Construction is expected to begin in October 2006. The new facility is set to start-up in the second quarter of 2007.
OIL & GAS FW WINS FEED FOR ABU DHABI OILFIELD The Abu Dhabi Co for Onshore Oil Operations (ADCO) has awarded Foster Wheeler International Corp (Abu Dhabi branch) the front-end engineering design (FEED) for the Sahil, Asab and Shah (SAS) oilfield development project in the United Arab Emirates. ADCO plans to undertake the full field development of the SAS maturing fields not only to increase production, but also to enhance the environmental aspects of the fields and to provide adequate facilities for their operations. Foster Wheeler’s UK operations will execute the FEED and will update the basis of design, develop the technical data, specifications and requisitions and provide a detailed cost estimate in order to define the engineering, procurement and construction (EPC) scope of work to enable an invitation to bid for the EPC phase to be prepared and issued. Foster Wheeler will also prepare material requisitions for long lead items and obtain estimated prices from vendors. The FEED is scheduled for completion in mid-2007, after which an EPC contractor will be appointed by ADCO. Commissioning of the project is expected in 2010.
HHI WINS LARGEST SINGLE OFFSHORE ORDER In what is described as the world’s largest offshore oil project in value and scale ever
recorded by a single company, Hyundai Heavy Industries (HHI) is to build offshore oil production facilities, worth US$1.6 billion, for Abu Dhabi Marine Operating Co. The Um Shaif project involves the construction of three fixed platforms of 40 000 tons, subsea pipelines and bridges offshore Abu Dhabi. The project will be completed by 2010 and produce 300 000 barrels of oil and 1.0 billion ft3 of natural gas per day. HHI will carry out all phases of the project on a turnkey basis, ranging from engineering, procurement and installation to commissioning work.
JV WINS SAUDI ARAMCO KHURAIS EPC CONTRACT Saudi Aramco has awarded a Foster Wheeler Energy Ltd and Hyundai Engineering and Construction Co Ltd joint venture a lump-sum turnkey engineering, procurement and construction contract for the Khurais gas facility, part of the Khurais central processing facility in Saudi Arabia. The Khurais gas facility is one of the main contract packages that make up the Khurais Crude Increment Program, which aims to deliver 1.2 million barrels per day (b/d) of Arabian light crude by 2009. The Khurais Crude Increment Program covers three oil fields: Khurais, Abu Jifan and Mazlij. The Khurais gas facility will be designed to process the sour associated gas produced from the three oilfields into a natural gas liquid product and a dry, single-phase sour shipping gas. The plant will process 563 million standard cubic feet per day of sour associated gas and 70 000 b/d of hydrocarbon condensate.