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ExxonMobil chemical awards feed contracts
June 2006
MARKET PROSPECTS
Pump Industry Analyst
MFC grades will end and change to label papers during the second quarter of 2007.
engages proven technology and an environmentally conscious design featuring gasification.
EXXONMOBIL CHEMICAL AWARDS FEED CONTRACTS
OIL & GAS
PETROCHEMICALS
MAJOR DRILLING CONTRACT FOR AKER KVAERNER
SNC-LAVALIN, SAIPEM BUILD LNG TERMINAL
Aker Kvaerner has signed a US$160 million contract with Singapore’s Jurong Shipyard Pte Ltd for the delivery of a drilling system for an ultra deepwater drilling semi-submersible platform. The work includes the delivery of a complete drilling package consisting of engineering, drilling equipment deliveries and subsea equipment. The new agreement is the fifth contract with Jurong Shipyard since October 2005. The ultra deepwater drilling rig is scheduled for delivery in the first quarter of 2010.
The Canaport LNG Ltd Partnership has selected SNC-CENMC GP, a partnership between SNC-Lavalin Inc and CENMC Canada Inc, an affiliate of Saipem SpA, to design and construct a Liquefied Natural Gas (LNG) import and re-gasification terminal in Saint John, New Brunswick, Canada. SNC-Lavalin and CENMC will jointly carry out the engineering, procurement and construction (EPC) for the onshore portion of this world-scale facility, the first constructed in Canada. Work will be carried out from SNC-Lavalin’s offices in Montreal and from project site offices in Saint John. The Canaport LNG Terminal includes two LNG storage tanks, each with a nominal capacity of 160 000 m3. The facility, located adjacent to Irving Oil’s existing Canaport terminal, will have an initial send out capacity of one billion standard cubic feet per day of natural gas. Work on the project has started and the terminal is scheduled to be operational in the fourth quarter of 2008. Canaport LNG, which will own and operate the terminal, is a limited partnership formed between Repsol YPF SA of Spain and Irving Oil Co Ltd of Canada. Repsol YPF is an international oil and gas company, operating in more than 25 countries. Irving Oil is a privately owned energy processing, transporting and marketing company that also operates a 280 000 barrels per day refinery in New Brunswick.
ExxonMobil Asia Pacific Pte Ltd has awarded frontend engineering design (FEED) contracts for the derivative units associated with a possible second worldscale steam-cracking complex that would be located at its existing Singapore refining and chemical site. FEED contracts were awarded to Aker Kvaerner for a polyethylene unit; Mitsui Engineering and Shipbuilding for polypropylene and specialty elastomers units; and Foster Wheeler and WorleyParsons for an aromatics extraction unit, an oxo alcohol plant expansion and associated plant infrastructure. Mustang Engineering was awarded the contract for process control and instrumentation. Bids have also been invited from Shaw Stone & Webster and a Technip/Chiyoda joint-venture for design, engineering, procurement and construction (DEPC) work for the proposed steam cracker.
JACOBS TO PROVIDE EPC FOR NORTHERN LIGHTS PROJECT A Jacobs Engineering Group Inc subsidiary has received a contract from the Northern Lights Partnership (a joint venture of Synenco Energy and SinoCanada Petroleum Corp, a subsidiary of Sinopec Group) to provide engineering and procurement services on the upgrader area of the Northern Lights Project in Alberta, Canada. The Northern Lights Project is an oil sands mining, bitumen extraction and upgrading facility. Jacobs is working with Synenco to minimise natural gas use and drive down emissions by developing an upgrader process configuration that
4
FW AWARDED REFINERY REVAMP IN LITHUANIA Milan, Italy-based Foster Wheeler Italiana SpA, is to upgrade Lithuania’s Mazeikiai refinery, the only refinery located in the Baltic states. This revamp forms part of a comprehensive modernisation program which will enable the refinery to meet future European Union fuel quality specifications. Foster Wheeler will provide basic design, front-end engineering, detailed design and procurement services for the revamp of the existing refinery, including a vacuum unit, vacuum gasoil hydrotreater,
diesel/kerosene hydrodesulphurisation unit, fluid catalytic cracking unit (FCCU), amine and sulfur recovery unit and all related utilities. The FCCU capacity will be increased from 45 000 barrels per stream day (bpsd) to 60 000 bpsd.
FLUOR WINS FEED WORK FOR CANADIAN MEGA-PROJECT Fluor Corp has been selected to provide front-end engineering and design (FEED) services for a US$2 billion expansion project for Canada’s Husky Energy Inc. Fluor’s FEED work will allow Husky to proceed with plans to double the capacity of its heavy oil upgrader in Lloydminster, Saskatchewan, from approximately 80 000 barrels per day to a potential capacity of 150 000 barrels per day. The facility processes heavy oil into high quality, low sulphur synthetic crude oil to be used as feedstock for refineries in Canada and the United States. Work on the C$88 million contract will be led by Fluor’s office in Calgary and is expected to be completed in 2007. Husky will then proceed with project approvals and construction. • ICA Fluor, the industrial engineering and construction company jointly owned by Fluor Corp and Empresas ICA Sociedad Controladora have signed a lump sum contract with Mexico’s Indelpro for detailed engineering, construction, procurement and pre-commissioning services of a second line of polypropylene and the revamping of the existing propylene splitter in Altamira, Tamaulipas, Mexico.
MARKET PROSPECTS
Pump Industry Analyst
MFC grades will end and change to label papers during the second quarter of 2007.
engages proven technology and an environmentally conscious design featuring gasification.
EXXONMOBIL CHEMICAL AWARDS FEED CONTRACTS
OIL & GAS
PETROCHEMICALS
MAJOR DRILLING CONTRACT FOR AKER KVAERNER
SNC-LAVALIN, SAIPEM BUILD LNG TERMINAL
Aker Kvaerner has signed a US$160 million contract with Singapore’s Jurong Shipyard Pte Ltd for the delivery of a drilling system for an ultra deepwater drilling semi-submersible platform. The work includes the delivery of a complete drilling package consisting of engineering, drilling equipment deliveries and subsea equipment. The new agreement is the fifth contract with Jurong Shipyard since October 2005. The ultra deepwater drilling rig is scheduled for delivery in the first quarter of 2010.
The Canaport LNG Ltd Partnership has selected SNC-CENMC GP, a partnership between SNC-Lavalin Inc and CENMC Canada Inc, an affiliate of Saipem SpA, to design and construct a Liquefied Natural Gas (LNG) import and re-gasification terminal in Saint John, New Brunswick, Canada. SNC-Lavalin and CENMC will jointly carry out the engineering, procurement and construction (EPC) for the onshore portion of this world-scale facility, the first constructed in Canada. Work will be carried out from SNC-Lavalin’s offices in Montreal and from project site offices in Saint John. The Canaport LNG Terminal includes two LNG storage tanks, each with a nominal capacity of 160 000 m3. The facility, located adjacent to Irving Oil’s existing Canaport terminal, will have an initial send out capacity of one billion standard cubic feet per day of natural gas. Work on the project has started and the terminal is scheduled to be operational in the fourth quarter of 2008. Canaport LNG, which will own and operate the terminal, is a limited partnership formed between Repsol YPF SA of Spain and Irving Oil Co Ltd of Canada. Repsol YPF is an international oil and gas company, operating in more than 25 countries. Irving Oil is a privately owned energy processing, transporting and marketing company that also operates a 280 000 barrels per day refinery in New Brunswick.
ExxonMobil Asia Pacific Pte Ltd has awarded frontend engineering design (FEED) contracts for the derivative units associated with a possible second worldscale steam-cracking complex that would be located at its existing Singapore refining and chemical site. FEED contracts were awarded to Aker Kvaerner for a polyethylene unit; Mitsui Engineering and Shipbuilding for polypropylene and specialty elastomers units; and Foster Wheeler and WorleyParsons for an aromatics extraction unit, an oxo alcohol plant expansion and associated plant infrastructure. Mustang Engineering was awarded the contract for process control and instrumentation. Bids have also been invited from Shaw Stone & Webster and a Technip/Chiyoda joint-venture for design, engineering, procurement and construction (DEPC) work for the proposed steam cracker.
JACOBS TO PROVIDE EPC FOR NORTHERN LIGHTS PROJECT A Jacobs Engineering Group Inc subsidiary has received a contract from the Northern Lights Partnership (a joint venture of Synenco Energy and SinoCanada Petroleum Corp, a subsidiary of Sinopec Group) to provide engineering and procurement services on the upgrader area of the Northern Lights Project in Alberta, Canada. The Northern Lights Project is an oil sands mining, bitumen extraction and upgrading facility. Jacobs is working with Synenco to minimise natural gas use and drive down emissions by developing an upgrader process configuration that
4
FW AWARDED REFINERY REVAMP IN LITHUANIA Milan, Italy-based Foster Wheeler Italiana SpA, is to upgrade Lithuania’s Mazeikiai refinery, the only refinery located in the Baltic states. This revamp forms part of a comprehensive modernisation program which will enable the refinery to meet future European Union fuel quality specifications. Foster Wheeler will provide basic design, front-end engineering, detailed design and procurement services for the revamp of the existing refinery, including a vacuum unit, vacuum gasoil hydrotreater,
diesel/kerosene hydrodesulphurisation unit, fluid catalytic cracking unit (FCCU), amine and sulfur recovery unit and all related utilities. The FCCU capacity will be increased from 45 000 barrels per stream day (bpsd) to 60 000 bpsd.
FLUOR WINS FEED WORK FOR CANADIAN MEGA-PROJECT Fluor Corp has been selected to provide front-end engineering and design (FEED) services for a US$2 billion expansion project for Canada’s Husky Energy Inc. Fluor’s FEED work will allow Husky to proceed with plans to double the capacity of its heavy oil upgrader in Lloydminster, Saskatchewan, from approximately 80 000 barrels per day to a potential capacity of 150 000 barrels per day. The facility processes heavy oil into high quality, low sulphur synthetic crude oil to be used as feedstock for refineries in Canada and the United States. Work on the C$88 million contract will be led by Fluor’s office in Calgary and is expected to be completed in 2007. Husky will then proceed with project approvals and construction. • ICA Fluor, the industrial engineering and construction company jointly owned by Fluor Corp and Empresas ICA Sociedad Controladora have signed a lump sum contract with Mexico’s Indelpro for detailed engineering, construction, procurement and pre-commissioning services of a second line of polypropylene and the revamping of the existing propylene splitter in Altamira, Tamaulipas, Mexico.