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JV to build LPG plant in India
tract for all tankage at the grassroots Sohar Refinery in Sohar, Oman. CB&I’s contract is with JGC Corp, the main engineering contractor for the entire US$1 billion facility. CB&I’s work includes engineering, material supply, fabrication, construction, testing, painting and insulation of 55 miscellaneous storage tanks, 16 spheres and one elevated water storage tank. The project is scheduled for completion by the end of 2005. When finished, the project will provide the refinery with more than 1 million m3 of bulk liquid storage and more than 40 000 m3 of pressurized storage for propylene and LPG. Meanwhile, CB&I’s subsidiary, CB&I Howe-Baker, has been awarded a US$65 million contract by Marathon Ashland Petroleum (MAP) to design and build a 33 000 barrel per day gas oil hydrotreater at its refinery in Detroit, Michigan, USA. The hydrotreater will be a cornerstone of MAP’s clean fuels programme at the facility, reducing sulphur in both gasoline and diesel products while improving the performance of the fluid catalytic cracker (FCC) unit. The hydrotreater will use licensed technology from Haldor Topsoe, with mechanical completion scheduled for summer 2005.
CHEVRONTEXACO PLANS OFFSHORE LNG TERMINAL ChevronTexaco Corp plans to construct a US$650 million offshore liquefied natural gas (LNG) receiving and regasification terminal, to be located 13 km off the coast of Baja California, Mexico. The company is currently seeking the necessary approvals from the Mexican government. ChevronTexaco has a strategy of developing an integrated, global natural gas
Filtration Industry Analyst
project. It is currently involved in several large gas field developments, including a proposed offshore regasification in the Gulf of Mexico referred to as Port Pelican. ChevronTexaco has awarded major contracts to Aker Kvaerner and Fluor for frontend engineering design (FEED) and to perform engineering, procurement and construction management for both its Port Pelican project and Baja California offshore LNG terminal. The construction contract is expected to be awarded in the first half of 2004. The proposed offshore LNG terminal will be constructed using a Gravity Based Structure (GBS), a freestanding concrete structure, along with mechanical facilities capable of offloading, storage and regasifying LNG. The terminal will be designed to process 40 million m3 of gas per day, with initial processing of approximately 20 million m3 gas per day. Commissioning and start-up are projected for the fourth quarter of 2007. Aker Kvaerner has been awarded the GBS contract. Fluor’s scope includes the engineering, procurement and construction management for all platform topsides equipment, related utilities and support equipment as well as overall programme management. A portion of the topsides engineering work will be performed through a subcontract to ICA Fluor, a Fluor affiliate in Mexico City.
JV TO BUILD LPG PLANT IN INDIA South Asia LPG Ltd, a joint venture between Total and Hindustan Petroleum Co, is to build a liquefied petroleum gas (LPG) import and underground storage terminal in Visakhapatnam, India. With a storage capacity of 60 000 tonnes, the terminal will be the largest such facility
on India’s east coast and the first of its type in a country where demand for LPG is experiencing strong growth. Construction will begin this December, with commercial start-up scheduled for 2006.
JACOBS TO CONSTRUCT GAS STORAGE CAVERNS Jacobs Engineering Group Inc has won a US$225 million contract from Scottish and Southern Energy for the construction of six underground gas storage caverns at Aldbrough, UK. The six-year programme involves coastal works for seawater inlets/outlets, subsurface drilling and leaching of caverns, engineering and installation of an above-ground centralized gas process facility, as well as the construction of an 8 km pipeline linking the facility to the national transmission system. The caverns, which will be more than 1 km underground, accommodate the offline storage of natural gas to meet peak demand fluctuations. Jacobs has also signed a US$40 million agreement with Motiva Enterprises to provide engineering services for the 2006 Fluid Catalytic Cracking unit turnaround at Motiva’s refinery in Convent, Louisiana, USA. Jacobs will provide engineering, design and procurement services for new facilities required to meet the emission standards set forth in Motiva’s consent decree programme for the existing FCC unit.
ORDERS IN FOR GAS CARRIERS Mitsubishi Heavy Industries (MHI) has received an order for four liquefied petroleum gas (LPG) carriers from the BP Shipping, while the BG Group has entered into an agreement with Samsung
Heavy Industries to purchase three liquefied natural gas (LNG) ships. The BP Shipping order is for double-hulled ships with a capacity of 83 000 m3. MHI will build all four units at its shipyard in Nagasaki, Japan, with delivery of the first ship scheduled for mid-2006. The BG order, meanwhile, is for three 145 000 m3 ships that are expected to be delivered in the second half of 2006. BG has also secured options with Samsung for up to four more new-build ships for delivery in 2007. In total, the cost of the three ships and the options will be approximately US$460 million.
ENGINEERING & CONSTRUCTION ALCAN REFINERY EXPANSION STUDY UNDERWAY A joint venture composed of Leighton Contractors and SNC-Lavalin Australia is to undertake a definitive feasibility study (DFS) for a proposed expansion of Alcan’s alumina refinery at Gove, Australia. The DFS will examine the financial feasibility and engineering requirements of the expansion, which plans to increase the refinery’s capacity from 2 million tonnes to about 3.5 million tonnes per annum. If the nine-month feasibility study gives the project the green light, it would take approximately three years to complete the expansion.
WASTE RECYLING FACILITY FOR SOUTH AFRICA Foster Wheeler Ltd has secured a US$45 million engineering, procurement and construction management contract from Sasol Synfuels
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MARKET PROSPECTS
December 2003
CHEVRONTEXACO PLANS OFFSHORE LNG TERMINAL ChevronTexaco Corp plans to construct a US$650 million offshore liquefied natural gas (LNG) receiving and regasification terminal, to be located 13 km off the coast of Baja California, Mexico. The company is currently seeking the necessary approvals from the Mexican government. ChevronTexaco has a strategy of developing an integrated, global natural gas
Filtration Industry Analyst
project. It is currently involved in several large gas field developments, including a proposed offshore regasification in the Gulf of Mexico referred to as Port Pelican. ChevronTexaco has awarded major contracts to Aker Kvaerner and Fluor for frontend engineering design (FEED) and to perform engineering, procurement and construction management for both its Port Pelican project and Baja California offshore LNG terminal. The construction contract is expected to be awarded in the first half of 2004. The proposed offshore LNG terminal will be constructed using a Gravity Based Structure (GBS), a freestanding concrete structure, along with mechanical facilities capable of offloading, storage and regasifying LNG. The terminal will be designed to process 40 million m3 of gas per day, with initial processing of approximately 20 million m3 gas per day. Commissioning and start-up are projected for the fourth quarter of 2007. Aker Kvaerner has been awarded the GBS contract. Fluor’s scope includes the engineering, procurement and construction management for all platform topsides equipment, related utilities and support equipment as well as overall programme management. A portion of the topsides engineering work will be performed through a subcontract to ICA Fluor, a Fluor affiliate in Mexico City.
JV TO BUILD LPG PLANT IN INDIA South Asia LPG Ltd, a joint venture between Total and Hindustan Petroleum Co, is to build a liquefied petroleum gas (LPG) import and underground storage terminal in Visakhapatnam, India. With a storage capacity of 60 000 tonnes, the terminal will be the largest such facility
on India’s east coast and the first of its type in a country where demand for LPG is experiencing strong growth. Construction will begin this December, with commercial start-up scheduled for 2006.
JACOBS TO CONSTRUCT GAS STORAGE CAVERNS Jacobs Engineering Group Inc has won a US$225 million contract from Scottish and Southern Energy for the construction of six underground gas storage caverns at Aldbrough, UK. The six-year programme involves coastal works for seawater inlets/outlets, subsurface drilling and leaching of caverns, engineering and installation of an above-ground centralized gas process facility, as well as the construction of an 8 km pipeline linking the facility to the national transmission system. The caverns, which will be more than 1 km underground, accommodate the offline storage of natural gas to meet peak demand fluctuations. Jacobs has also signed a US$40 million agreement with Motiva Enterprises to provide engineering services for the 2006 Fluid Catalytic Cracking unit turnaround at Motiva’s refinery in Convent, Louisiana, USA. Jacobs will provide engineering, design and procurement services for new facilities required to meet the emission standards set forth in Motiva’s consent decree programme for the existing FCC unit.
ORDERS IN FOR GAS CARRIERS Mitsubishi Heavy Industries (MHI) has received an order for four liquefied petroleum gas (LPG) carriers from the BP Shipping, while the BG Group has entered into an agreement with Samsung
Heavy Industries to purchase three liquefied natural gas (LNG) ships. The BP Shipping order is for double-hulled ships with a capacity of 83 000 m3. MHI will build all four units at its shipyard in Nagasaki, Japan, with delivery of the first ship scheduled for mid-2006. The BG order, meanwhile, is for three 145 000 m3 ships that are expected to be delivered in the second half of 2006. BG has also secured options with Samsung for up to four more new-build ships for delivery in 2007. In total, the cost of the three ships and the options will be approximately US$460 million.
ENGINEERING & CONSTRUCTION ALCAN REFINERY EXPANSION STUDY UNDERWAY A joint venture composed of Leighton Contractors and SNC-Lavalin Australia is to undertake a definitive feasibility study (DFS) for a proposed expansion of Alcan’s alumina refinery at Gove, Australia. The DFS will examine the financial feasibility and engineering requirements of the expansion, which plans to increase the refinery’s capacity from 2 million tonnes to about 3.5 million tonnes per annum. If the nine-month feasibility study gives the project the green light, it would take approximately three years to complete the expansion.
WASTE RECYLING FACILITY FOR SOUTH AFRICA Foster Wheeler Ltd has secured a US$45 million engineering, procurement and construction management contract from Sasol Synfuels
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MARKET PROSPECTS
December 2003