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Qatofin announces ethane cracker
PREFERRED SUPPLIER AWARD FOR AKER KVAERNER The Aker Kvaerner subsidiary Kvaerner do Brasil has been awarded a prize as the “Preferred Supplier of machines and equipment for pulp production in 2005” from ABTCP (Brazilian Pulp and Paper Technical Association). The recognition as Preferred Supplier in Brazil follows two recently announced major orders from Suzano (Brazil) and ENCE (Uruguay), and is a further acknowledgement of Aker Kvaerner’s commitment to and successful presence in the South American pulp production market.
OIL & GAS FLUOR WINS PROJECT FOR LNG COMPLEX IN QATAR Fluor Corporation has been awarded a contract by Ras Laffan Liquefied Natural Gas Company Limited to provide the initial phase of engineering, procurement and construction management services (EPCM) for RasGas’s Common Offplot Projects in Qatar. The contract for the initial offplot work will be booked in Fluor’s fourth quarter, and its value is undisclosed. The contract authorizes Fluor to proceed with a portion of the scope, with the balance of the project, which has an estimated value of more than US$1 billion, to be released early next year. The scope of the EPCM contract covers common offplot facilities required to support a significant number of new projects in Ras Laffan,
Pump Industry Analyst
including six world scale LNG trains, which will be utilizing gas from the North Field. These offplot facilities include utilities, tankage and equipment required to enable storage and loading operations of liquefied petroleum gas and condensates produced from these operations. Work for this initial phase will be performed in Fluor’s Houston office. Ultimately, the LNG and related products that are processed at the Ras Laffan complex will be exported to meet the world’s growing energy demand. “We are very proud that RasGas has put its trust in Fluor for this important project. This is a strategically important award for our company and builds upon our strategy to grow the company’s presence in the Middle East. We have been active in the region for more than 55 years and in Qatar for 25 years,” said Jeff Faulk, Fluor’s group president of Energy & Chemicals.
AKER KVAERNER TO MODIFY MONGSTAD REFINERY Statoil has awarded Aker Kvaerner two framework agreements for its Mongstad refinery in Norway. One contract covers inspection services, the other modifications. The agreements will run for three years and will be effective from 1 January 2006. They also include options for prolonging the contracts up to six years. The value of the agreements, including the options for extension, is estimated at NKr420 million. Aker Kvaerner Offshore Partner will be Statoil’s contract partner for the two framework agreements, and the company’s Bergen department at Sandsli will do the practical follow-up work.
The modification agreement comprises all disciplines when modifications are carried out at the plant including electrical and instrumentation installations. Aker Kvaerner Elektro is partner for these disciplines. Aker Kvaerner Offshore Partner will have total responsibility covering everything from engineering to commissioning and installation (EPCI responsibility).
QATOFIN ANNOUNCES ETHANE CRACKER Qatofin has announced the construction of an ethane cracker in the Ras Laffan Industrial City and low linear density polyethylene (LLDPE) facilities in Messaieed at a total cost of US$1.2 billion. The total project costs include expenditure under the engineering, procurement and construction (EPC) contracts as well as financing and owner costs. In November this year, Qatofin finalized commitments from 24 mandated lead arrangers to raise US$760 million under an international loan facility for the purpose of financing up to 70% of the Qatofin project costs. The two main EPC contracts for the LLDPE facilities, including the LLDPE unit, have been awarded to Italian firm Snamprogetti, while the marine works contract was awarded to Ajman-based Greek firm Archirodon at a total amount of approximately US$300 million. The LLDPE unit and the marine works will be constructed in Messaieed, adjacent to Qapco facilities. Qatofin is a joint venture between Qapco with a 63% stake, the French Total Petrochemicals with 36% and Qatar Petroleum with 1%. With a 1.3 million tonnes per annum (MTpa) capacity,
the ethane cracker owned by Ras Laffan Olefins Company – a joint venture between Qatofin with a 45.7% stake and Q-Chem II with a 53.3% stake – will be one of the world’s largest. The Ras Laffan ethane cracker was awarded to Technip France last August. The last EPC package related to the ethylene pipe from Ras Laffan to Messaieed has yet to be awarded but will not affect the global schedule of the project, according to company officials. All plants of Q-Chem II, Qatofin, Ras Laffan Olefins Company are scheduled to go on stream in the last quarter of 2008 with commercial production expected early 2009. The project is also intended to combine the interests of the existing petrochemical investors in Qatar to create one of the world’s largest ethane crackers, maximizing the economies of scale and developing synergies with other petrochemical ventures at Mesaieed Industrial City. At present Qapco produces 525 000 tonnes per year of ethylene and 400 000 tonnes per year of polyethylene and Qatofin would produce an additional 600 000 tonnes of ethylene and 450 000 tonnes of LLDPE per annum.
FOSTER WHEELER WINS MOMBASA REFINERY UPGRADE Foster Wheeler Energy Limited has been awarded a contract by Kenya Petroleum Refineries Ltd (KPRL) to prepare the basis of design (BOD) for the proposed upgrade of the Mombasa Refinery in Kenya. The shareholders of KPRL are the Government of Kenya (50%), Shell (17.1%), BP (17.1%) and Chevron (15.8%). The contract value was not
3
MARKET PROSPECTS
December 2005
OIL & GAS FLUOR WINS PROJECT FOR LNG COMPLEX IN QATAR Fluor Corporation has been awarded a contract by Ras Laffan Liquefied Natural Gas Company Limited to provide the initial phase of engineering, procurement and construction management services (EPCM) for RasGas’s Common Offplot Projects in Qatar. The contract for the initial offplot work will be booked in Fluor’s fourth quarter, and its value is undisclosed. The contract authorizes Fluor to proceed with a portion of the scope, with the balance of the project, which has an estimated value of more than US$1 billion, to be released early next year. The scope of the EPCM contract covers common offplot facilities required to support a significant number of new projects in Ras Laffan,
Pump Industry Analyst
including six world scale LNG trains, which will be utilizing gas from the North Field. These offplot facilities include utilities, tankage and equipment required to enable storage and loading operations of liquefied petroleum gas and condensates produced from these operations. Work for this initial phase will be performed in Fluor’s Houston office. Ultimately, the LNG and related products that are processed at the Ras Laffan complex will be exported to meet the world’s growing energy demand. “We are very proud that RasGas has put its trust in Fluor for this important project. This is a strategically important award for our company and builds upon our strategy to grow the company’s presence in the Middle East. We have been active in the region for more than 55 years and in Qatar for 25 years,” said Jeff Faulk, Fluor’s group president of Energy & Chemicals.
AKER KVAERNER TO MODIFY MONGSTAD REFINERY Statoil has awarded Aker Kvaerner two framework agreements for its Mongstad refinery in Norway. One contract covers inspection services, the other modifications. The agreements will run for three years and will be effective from 1 January 2006. They also include options for prolonging the contracts up to six years. The value of the agreements, including the options for extension, is estimated at NKr420 million. Aker Kvaerner Offshore Partner will be Statoil’s contract partner for the two framework agreements, and the company’s Bergen department at Sandsli will do the practical follow-up work.
The modification agreement comprises all disciplines when modifications are carried out at the plant including electrical and instrumentation installations. Aker Kvaerner Elektro is partner for these disciplines. Aker Kvaerner Offshore Partner will have total responsibility covering everything from engineering to commissioning and installation (EPCI responsibility).
QATOFIN ANNOUNCES ETHANE CRACKER Qatofin has announced the construction of an ethane cracker in the Ras Laffan Industrial City and low linear density polyethylene (LLDPE) facilities in Messaieed at a total cost of US$1.2 billion. The total project costs include expenditure under the engineering, procurement and construction (EPC) contracts as well as financing and owner costs. In November this year, Qatofin finalized commitments from 24 mandated lead arrangers to raise US$760 million under an international loan facility for the purpose of financing up to 70% of the Qatofin project costs. The two main EPC contracts for the LLDPE facilities, including the LLDPE unit, have been awarded to Italian firm Snamprogetti, while the marine works contract was awarded to Ajman-based Greek firm Archirodon at a total amount of approximately US$300 million. The LLDPE unit and the marine works will be constructed in Messaieed, adjacent to Qapco facilities. Qatofin is a joint venture between Qapco with a 63% stake, the French Total Petrochemicals with 36% and Qatar Petroleum with 1%. With a 1.3 million tonnes per annum (MTpa) capacity,
the ethane cracker owned by Ras Laffan Olefins Company – a joint venture between Qatofin with a 45.7% stake and Q-Chem II with a 53.3% stake – will be one of the world’s largest. The Ras Laffan ethane cracker was awarded to Technip France last August. The last EPC package related to the ethylene pipe from Ras Laffan to Messaieed has yet to be awarded but will not affect the global schedule of the project, according to company officials. All plants of Q-Chem II, Qatofin, Ras Laffan Olefins Company are scheduled to go on stream in the last quarter of 2008 with commercial production expected early 2009. The project is also intended to combine the interests of the existing petrochemical investors in Qatar to create one of the world’s largest ethane crackers, maximizing the economies of scale and developing synergies with other petrochemical ventures at Mesaieed Industrial City. At present Qapco produces 525 000 tonnes per year of ethylene and 400 000 tonnes per year of polyethylene and Qatofin would produce an additional 600 000 tonnes of ethylene and 450 000 tonnes of LLDPE per annum.
FOSTER WHEELER WINS MOMBASA REFINERY UPGRADE Foster Wheeler Energy Limited has been awarded a contract by Kenya Petroleum Refineries Ltd (KPRL) to prepare the basis of design (BOD) for the proposed upgrade of the Mombasa Refinery in Kenya. The shareholders of KPRL are the Government of Kenya (50%), Shell (17.1%), BP (17.1%) and Chevron (15.8%). The contract value was not
3
MARKET PROSPECTS
December 2005