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Upgrade planned at US refinery
MARKET PROSPECTS 000 metric tons per year) and monoethylene glycol (550 000 metric tons per year). The products will be mainly for export, with some also sold in the domestic market. The investment required is estimated at around US$3 billion, with commissioning of the units scheduled within five years.
Dow to expand in Italy
T
he Dow Chemical Co has announced plans to expand its facilities at Correggio, Italy, in a move that will position the site as Dow’s global research and development centre for polyurethane systems formulation and application technology. The company also plans to increase production capacity of the Dow Building Solutions plant that manufactures Styrafoam brand insulation products by 30%, and to optimize the site’s formulated polyurethane systems manufacturing plant, targeting improvements in productivity and logistics. The expansion of the Correggio facility, which is subject to appropriate government and regulatory approvals, is a US$20 million investment and is scheduled for completion in 2009.
Huntsman invests in polyurethanes
pound and the company’s third-best-selling active substance worldwide, with sales of 229 million in fiscal 2006. The new facility will consist of a building 45 metres high and two ancillary plants. Construction is expected to take 12–14 months.
OIL & GAS
Subsea contract for Aker Kvaerner
S
tatoilHydro, on behalf of the Morvin license group, has awarded Aker Kvaerner a contract for the engineering, procurement and construction (EPC) of a complete subsea production system for StatoilHydro’s Morvin field in the Norwegian Sea. The contract is worth approximately NKr1 billion. The subsea production system for the Morvin field will consist of two four-slot manifolds, three horizontal subsea trees, production control system, steel tube umbilicals, tie-in system and intervention tools. The technology is designed to handle pressures up to 15000 psi and temperatures as high as 170°C. The Morvin field lies on the Halten terrace in the Norwegian Sea. It is located approximately 20 km west of the Åsgard B platform, some 200 km west of mid-Norway. Final delivery for the project is May 2009. Manufacturing will be conducted at Tranby, Moss and Egersund, Norway; Aberdeen, UK; Batam, Indonesia; and Port Klang, Malaysia.
H
untsman Corp will expand capacity at its Osnabrück, Germany TPU facility by investing in a new line to produce specialist high performance TPU grades. The new line is expected to come on stream during the second half of 2008.
Bayer invests in new plant
B
ayer CropScience is building a new plant for the production of MPE (methane phosphonous acid n-butyl ester) at the Knapsack Chemical Park near Cologne, Germany. MPE is an intermediate in the production of glufosinate-ammonium, Bayer CropScience’s best-selling herbicidal com-
January 2008
KBR to build Canadian gasification unit
K
BR has been awarded a C$225 million contract for the construction and fabrication of a gasification unit by Lurgi AG, an Air Liquide subsidiary. Lurgi is the engineering, procurement and construction contractor to North West Upgrading. KBR’s scope of work will include the fabrication of nearly 100 modules. The project, located near Edmonton, Alberta, is slated to begin in 2008, with field construction services for the Gasifer unit planned to start in summer 2008, and module fabrication expected to start in mid 2009. Mechanical completion of the Gasifer unit is planned for the first half of 2011.
Petrofac wins Algerian gas contract
P
etrofac has been awarded a US$600 million lump-sum engineering, procurement and construction contract by In Salah Gas (ISG), an association between Sonatrach (35%), BP (33%) and Statoil (32%) to develop and market gas from the District 3 region in the central Sahara area of Algeria. Petrofac’s scope of work includes the design and installation of additional field compression facilities at each of the three northern fields of REG, TEG and Krechba, in order to maintain plateau production rates of 9 billion cubic metres per year beyond 2009. Scheduled for phased completion during 2009 and 2010, the objective of the project is to maintain gas production at plateau levels by reducing the pressure at the wellheads and compressing the gas to the required inlet pressure to the existing facilities. The facilities at TEG and REG will be almost identical with two trains of single stage compression at each site, using gas turbines to drive the compressors. The Krechba facility will consist of a single train of compression driven by an electric motor with additional power requirements being met by installing a third gas turbine generator. The project will also include tie-ins to the existing facilities at all three locations.
HYDROCARBON PROCESSING
Upgrade planned at US refinery
B
P is moving into the Canadian oil sands by acquiring a half-share in the Sunrise field in Alberta operated by Husky Energy. At the same time Husky will acquire a half share in BP’s Toledo oil refinery in Ohio, US, between them forming an integrated North American oil sands business. Toledo Refinery’s crude distillation capacity is currently 155 000 bpd of which 60 000 bpd capacity is currently heavy oil. The refinery is located in one of the largest energy consumption regions of the US and, subject to necessary approvals and permits, will be expanded to process 170 000 bpd of heavy oil and bitumen by 2015. It will be operated by BP as a US refining LLC.
Pump Industry Analyst
3
Dow to expand in Italy
T
he Dow Chemical Co has announced plans to expand its facilities at Correggio, Italy, in a move that will position the site as Dow’s global research and development centre for polyurethane systems formulation and application technology. The company also plans to increase production capacity of the Dow Building Solutions plant that manufactures Styrafoam brand insulation products by 30%, and to optimize the site’s formulated polyurethane systems manufacturing plant, targeting improvements in productivity and logistics. The expansion of the Correggio facility, which is subject to appropriate government and regulatory approvals, is a US$20 million investment and is scheduled for completion in 2009.
Huntsman invests in polyurethanes
pound and the company’s third-best-selling active substance worldwide, with sales of 229 million in fiscal 2006. The new facility will consist of a building 45 metres high and two ancillary plants. Construction is expected to take 12–14 months.
OIL & GAS
Subsea contract for Aker Kvaerner
S
tatoilHydro, on behalf of the Morvin license group, has awarded Aker Kvaerner a contract for the engineering, procurement and construction (EPC) of a complete subsea production system for StatoilHydro’s Morvin field in the Norwegian Sea. The contract is worth approximately NKr1 billion. The subsea production system for the Morvin field will consist of two four-slot manifolds, three horizontal subsea trees, production control system, steel tube umbilicals, tie-in system and intervention tools. The technology is designed to handle pressures up to 15000 psi and temperatures as high as 170°C. The Morvin field lies on the Halten terrace in the Norwegian Sea. It is located approximately 20 km west of the Åsgard B platform, some 200 km west of mid-Norway. Final delivery for the project is May 2009. Manufacturing will be conducted at Tranby, Moss and Egersund, Norway; Aberdeen, UK; Batam, Indonesia; and Port Klang, Malaysia.
H
untsman Corp will expand capacity at its Osnabrück, Germany TPU facility by investing in a new line to produce specialist high performance TPU grades. The new line is expected to come on stream during the second half of 2008.
Bayer invests in new plant
B
ayer CropScience is building a new plant for the production of MPE (methane phosphonous acid n-butyl ester) at the Knapsack Chemical Park near Cologne, Germany. MPE is an intermediate in the production of glufosinate-ammonium, Bayer CropScience’s best-selling herbicidal com-
January 2008
KBR to build Canadian gasification unit
K
BR has been awarded a C$225 million contract for the construction and fabrication of a gasification unit by Lurgi AG, an Air Liquide subsidiary. Lurgi is the engineering, procurement and construction contractor to North West Upgrading. KBR’s scope of work will include the fabrication of nearly 100 modules. The project, located near Edmonton, Alberta, is slated to begin in 2008, with field construction services for the Gasifer unit planned to start in summer 2008, and module fabrication expected to start in mid 2009. Mechanical completion of the Gasifer unit is planned for the first half of 2011.
Petrofac wins Algerian gas contract
P
etrofac has been awarded a US$600 million lump-sum engineering, procurement and construction contract by In Salah Gas (ISG), an association between Sonatrach (35%), BP (33%) and Statoil (32%) to develop and market gas from the District 3 region in the central Sahara area of Algeria. Petrofac’s scope of work includes the design and installation of additional field compression facilities at each of the three northern fields of REG, TEG and Krechba, in order to maintain plateau production rates of 9 billion cubic metres per year beyond 2009. Scheduled for phased completion during 2009 and 2010, the objective of the project is to maintain gas production at plateau levels by reducing the pressure at the wellheads and compressing the gas to the required inlet pressure to the existing facilities. The facilities at TEG and REG will be almost identical with two trains of single stage compression at each site, using gas turbines to drive the compressors. The Krechba facility will consist of a single train of compression driven by an electric motor with additional power requirements being met by installing a third gas turbine generator. The project will also include tie-ins to the existing facilities at all three locations.
HYDROCARBON PROCESSING
Upgrade planned at US refinery
B
P is moving into the Canadian oil sands by acquiring a half-share in the Sunrise field in Alberta operated by Husky Energy. At the same time Husky will acquire a half share in BP’s Toledo oil refinery in Ohio, US, between them forming an integrated North American oil sands business. Toledo Refinery’s crude distillation capacity is currently 155 000 bpd of which 60 000 bpd capacity is currently heavy oil. The refinery is located in one of the largest energy consumption regions of the US and, subject to necessary approvals and permits, will be expanded to process 170 000 bpd of heavy oil and bitumen by 2015. It will be operated by BP as a US refining LLC.
Pump Industry Analyst
3