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Fluor selected for clean fuels project in South Africa
March 2004
Shell SA Energy and BP Southern Africa have chosen Fluor Corp to provide engineering, design, procurement and construction management services for a clean fuels project at their jointly owned SAPREF crude oil refinery in Durban, South Africa. The SAPREF LION (Large Increase in Octane Number) project will provide new clean fuels capabilities to meet South African requirements by 1 January 2006. The fuel produced will have a zero lead and reduced sulphur content. Fluor’s work includes project management, basic and detail engineering, procurement, construction management and commissioning of the project. The project will be executed out of Fluor’s offices in Johannesburg, South Africa; Haarlem, the Netherlands; and Gliwice, Poland. The SAPREF refinery is the largest crude oil refinery in South Africa consisting of a fuels refinery as well as a base oil refinery.
PULP & PAPER METSO TO DELIVER BOARD MAKING LINE TO CHINA Metso Paper, together with its Chinese joint venture company Valmet-Xian, will supply a 30 million board making line to Dongguan Jianhui Paper Co Ltd in China. The new line is scheduled to start up in August 2005. The ordered board-making line will produce high quality coated recycled 5-ply board in the basis weight range of 250–450
g/m² with an annual production capacity of approximately 300 000 tons. Valmet-Xian as well as Metso’s units in Finland and Sweden will participate in the delivery. The board-making line is the second one delivered to Dongguan Jianhui Paper. The first delivery, the BM1 line, will start up in May 2004.
STORA ENSO TO MODERNIZE SUZHOU FINE PAPER MACHINE Stora Enso will upgrade and modernize the paper machine and increase sheeting capacity at its fine paper mill in Suzhou, China. The 38 million investment will improve productivity and safeguard market presence in the fast-growing Chinese market. The project will be completed in September 2005. Demand for coated fine paper in China is expected to grow by over 7% annually up to 2010.
POWER GENERATION HHI WINS US$420MN SAUDI PLANT CONTRACT Hyundai Heavy Industries (HHI) is to build a US$420 million 1050 MW co-generation power plant for Saudi Aramco, a state-run oil company in Saudi Arabia. HHI will construct the power plant on a turnkey basis including engineering, procurement, manufacturing, shipping delivery, installation, and commissioning. The project will be completed by December 2006. This co-generation power plant will be built to provide electricity and steam for oil and gas refinery plants in four
regions of the Arabian (Persian) Gulf. The power plant is composed of three 300 MW gas turbine units, one 150MW gas turbine unit, and eight heat recovery steam generator (HRSG) boiler units. For 2004, HHI’s Industrial Plant & Engineering Division is targeting US$1.0 billion of orders in power plants, desalination plants and oil and gas refinery plant projects in overseas markets.
CONSORTIUM WINS FGD CONTROL SYSTEMS WORK Alstom, in consortium with Stone & Webster Inc, has entered into an alliance agreement with Duke Power to progressively retrofit four power stations with flue gas desulphurization (FGD) systems to control sulphur dioxide emissions. Under the terms of the alliance agreement, Duke Power has now awarded the consortium a firm contract, valued at over 280 million, to retrofit the first of these four power stations - Marshall Steam Station in North Carolina. Alstom will design, engineer and procure the process island and Stone & Webster will perform balanceof-plant design, engineering and procurement, as well as construction services for the scrubber installations. Work on the Marshall Steam Station has already started and is scheduled for completion in 2007.
FLUOR AWARDED US$154 MN IN IRAQI POWER PROJECTS Fluor Corp has secured three separate task orders worth US$154 million from the US Army Corps of Engineers for electrical power restoration work in Iraq.
The task orders call for Fluor to rehabilitate multiple power generation facilities in Baghdad, reconstruct a power transmission line in northern Iraq and restore a water intake facility at a thermal power station in southern Iraq. As future needs are identified by the Corps of Engineers, Fluor may provide a full range of engineering and construction services, including new work, restoration, renovation or repair; combined design-build activities; temporary base operations, and short-term operations and maintenance services, in support of US military operations, other US government agencies or friendly foreign governments. The contract has a potential value of US$500 million in its first year, with the potential for four one-year options that have a maximum value of US$250 million each. Since April 2003, Fluor has been awarded more than US$600 million in Iraqi reconstruction work under various Department of Defense contracts.
ADB BACKS US$1.37 BN POWER PROJECT IN THAILAND The Asian Development Bank (ADB) is supporting a US$1.37 billion power project in Rayong Province, Thailand, to help meet the country’s long-term need for reliable energy and diversification of energy sources. The commitment includes loans up to US$140 million, and a political risk guarantee of up to US$70 million for offshore cofinancing. This is ADB’s first private power generation project in Thailand and for which it is providing both a loan and political risk guarantee. The project entails the construction of a 1434 MW coalfired power station in Map Ta Phut. It will be developed
3
MARKET PROSPECTS
FLUOR SELECTED FOR CLEAN FUELS PROJECT IN SOUTH AFRICA
Pump Industry Analyst
Shell SA Energy and BP Southern Africa have chosen Fluor Corp to provide engineering, design, procurement and construction management services for a clean fuels project at their jointly owned SAPREF crude oil refinery in Durban, South Africa. The SAPREF LION (Large Increase in Octane Number) project will provide new clean fuels capabilities to meet South African requirements by 1 January 2006. The fuel produced will have a zero lead and reduced sulphur content. Fluor’s work includes project management, basic and detail engineering, procurement, construction management and commissioning of the project. The project will be executed out of Fluor’s offices in Johannesburg, South Africa; Haarlem, the Netherlands; and Gliwice, Poland. The SAPREF refinery is the largest crude oil refinery in South Africa consisting of a fuels refinery as well as a base oil refinery.
PULP & PAPER METSO TO DELIVER BOARD MAKING LINE TO CHINA Metso Paper, together with its Chinese joint venture company Valmet-Xian, will supply a 30 million board making line to Dongguan Jianhui Paper Co Ltd in China. The new line is scheduled to start up in August 2005. The ordered board-making line will produce high quality coated recycled 5-ply board in the basis weight range of 250–450
g/m² with an annual production capacity of approximately 300 000 tons. Valmet-Xian as well as Metso’s units in Finland and Sweden will participate in the delivery. The board-making line is the second one delivered to Dongguan Jianhui Paper. The first delivery, the BM1 line, will start up in May 2004.
STORA ENSO TO MODERNIZE SUZHOU FINE PAPER MACHINE Stora Enso will upgrade and modernize the paper machine and increase sheeting capacity at its fine paper mill in Suzhou, China. The 38 million investment will improve productivity and safeguard market presence in the fast-growing Chinese market. The project will be completed in September 2005. Demand for coated fine paper in China is expected to grow by over 7% annually up to 2010.
POWER GENERATION HHI WINS US$420MN SAUDI PLANT CONTRACT Hyundai Heavy Industries (HHI) is to build a US$420 million 1050 MW co-generation power plant for Saudi Aramco, a state-run oil company in Saudi Arabia. HHI will construct the power plant on a turnkey basis including engineering, procurement, manufacturing, shipping delivery, installation, and commissioning. The project will be completed by December 2006. This co-generation power plant will be built to provide electricity and steam for oil and gas refinery plants in four
regions of the Arabian (Persian) Gulf. The power plant is composed of three 300 MW gas turbine units, one 150MW gas turbine unit, and eight heat recovery steam generator (HRSG) boiler units. For 2004, HHI’s Industrial Plant & Engineering Division is targeting US$1.0 billion of orders in power plants, desalination plants and oil and gas refinery plant projects in overseas markets.
CONSORTIUM WINS FGD CONTROL SYSTEMS WORK Alstom, in consortium with Stone & Webster Inc, has entered into an alliance agreement with Duke Power to progressively retrofit four power stations with flue gas desulphurization (FGD) systems to control sulphur dioxide emissions. Under the terms of the alliance agreement, Duke Power has now awarded the consortium a firm contract, valued at over 280 million, to retrofit the first of these four power stations - Marshall Steam Station in North Carolina. Alstom will design, engineer and procure the process island and Stone & Webster will perform balanceof-plant design, engineering and procurement, as well as construction services for the scrubber installations. Work on the Marshall Steam Station has already started and is scheduled for completion in 2007.
FLUOR AWARDED US$154 MN IN IRAQI POWER PROJECTS Fluor Corp has secured three separate task orders worth US$154 million from the US Army Corps of Engineers for electrical power restoration work in Iraq.
The task orders call for Fluor to rehabilitate multiple power generation facilities in Baghdad, reconstruct a power transmission line in northern Iraq and restore a water intake facility at a thermal power station in southern Iraq. As future needs are identified by the Corps of Engineers, Fluor may provide a full range of engineering and construction services, including new work, restoration, renovation or repair; combined design-build activities; temporary base operations, and short-term operations and maintenance services, in support of US military operations, other US government agencies or friendly foreign governments. The contract has a potential value of US$500 million in its first year, with the potential for four one-year options that have a maximum value of US$250 million each. Since April 2003, Fluor has been awarded more than US$600 million in Iraqi reconstruction work under various Department of Defense contracts.
ADB BACKS US$1.37 BN POWER PROJECT IN THAILAND The Asian Development Bank (ADB) is supporting a US$1.37 billion power project in Rayong Province, Thailand, to help meet the country’s long-term need for reliable energy and diversification of energy sources. The commitment includes loans up to US$140 million, and a political risk guarantee of up to US$70 million for offshore cofinancing. This is ADB’s first private power generation project in Thailand and for which it is providing both a loan and political risk guarantee. The project entails the construction of a 1434 MW coalfired power station in Map Ta Phut. It will be developed
3
MARKET PROSPECTS
FLUOR SELECTED FOR CLEAN FUELS PROJECT IN SOUTH AFRICA
Pump Industry Analyst