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UPM-Kymmene to build a new paper machine in China
29/01/2003
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January 2003
The project is owned by Companhia Vale do Rio Doce (CVRD), which is the largest diversified mining company in the Americas. Aker Kvaerner is currently acting as owner’s engineer for the development of the Sossego Copper Sulphide project, owned by a subsidiary of CVRD. The scope of the study included crushing, leaching, agglomeration, and solvent extraction–electrowinning facilities for processing 6–7 million tonnes per year of ore; and infrastructure necessary to support the projected operations. CVRD intends to develop between four and six copper deposits in Brazil in the next few years.
POWER GENERATION ICA FLUOR DANIEL TO BUILD 498 MW MEXICAN POWER PLANT Iberdrola Energia SA has awarded a contract to ICA Fluor Daniel for the construction of a combinedcycle power plant in Gomez Palacios, Durango, Mexico. The US$250 million La Laguna II plant, scheduled for completion in April 2005, will have a capacity of 498 MW and will provide electricity to the booming northern industrial zone of Mexico, as well as stabilizing the electrical grid in the area. Power generated will be sold to the Federal Electricity Commission, under its programme to develop independent power producers. The contract is a 30month, lump-sum, turnkey project that involves engineering, procurement, construction and start-up services. ICA Fluor Daniel is the industrial engineering company jointly owned by Fluor Corp and Empresas ICA Sociedad Controladora.
Filtration Industry Analyst
FW TO SUPPLY MWe TURNKEY BOILER PLANT IN POLAND Foster Wheeler Energia Oy and its Polish subsidiary, Foster Wheeler Energia Polska Sp zoo, have signed a contract with Poland’s Poludniowy Koncern Energetyczny (PKE) to supply a boiler island to a 460 MWe power plant at Lagisza in southern Poland. The contract is valued at approximately US$145.8 million. The new unit will be built alongside PKE’s existing 840 MWe power station at Lagisza, northeast of Katowice in Upper Silesia, and is part of an ongoing programme by PKE to replace outdated capacity with modern, highefficiency, environmentally friendly technologies. Operating seven other power stations in southern and western Poland, PKE is the country’s largest electricity utility, with 5056 MW of installed generating capacity.
SIEMENS POSTS POWER PLANT ORDERS WORTH 1.3 BILLION The Siemens Power Generation Group (PG) has secured 1.3 billion in power plant orders from Germany, Spain, Morocco and Mexico. The German utility GEW RheinEnergie AG has contracted PG to construct a 250 million combined heat and power plant in Cologne. In northern Spain, Siemens will build a 550 million 760 MW combined-cycle power plant. Siemens will construct a 384 MW combined-cycle plant, valued at over 400 million, near Tangiers, Morocco. The group also secured an 180 million order in Mexico for the construction of two simple-cycle power plants.
CHEMICALS SNC-LAVALIN TO BUILD AMMONIA PLANT IN AUSTRALIA SNC-Lavalin (SA) Inc has signed a contract worth more than US$300 million with Burrup Fertilisers Pty Ltd for the engineering, procurement and construction of an anhydrous ammonia production plant on the Burrup Peninsula in Karratha, Western Australia. The project includes an ammonia plant, with a production capacity of 2200 tonnes of ammonia per day, as well as utilities and associated facilities to support production. The ammonia plant technology will be supplied by Kellogg Brown and Root. Project management and engineering coordination will be based at SNC-Lavalin’s Perth, Australia office. Engineering work will start in January 2003, with construction completed within 30 months.
TECHNIPCOFLEXIP WINS CHINESE CONTRACT Technip-Coflexip is to build an integrated production facility for polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF) for BASF in the newly developed Shanghai Chemical Industry Park at Caojing, Shanghai, China. Technip-Coflexip’s scope of work covers engineering, procurement services as well as construction management. Engineering and procurement will be performed in TechnipCoflexip’s engineering centres in Kuala Lumpur and Shanghai. This project is a whollyowned investment of BASF
and will use BASF’s newly developed proprietary technology to convert butane directly to THF and subsequently to PolyTHF. With an annual capacity of 60 000 metric tons of PolyTHF and 80 000 metric tons of THF, it will be the largest PolyTHF production facility worldwide. The plants are scheduled for completion in the second half of 2004.
SUMITOMO, SHELL STUDY ETHYLENE PLANT PROPOSAL Sumitomo Chemical Co Ltd and Shell Chemicals Ltd are to jointly conduct a feasibility study for the possible construction of a new worldscale ethylene plant in Singapore. The envisaged ethylene plant will be located on Bukom Island, Singapore, with an ethylene production capacity of 1 million tonnes per year. If the feasibility study results in a decision to proceed, the plant is expected to start up in 2007, depending on supply and demand.
PULP & PAPER UPM-KYMMENE TO BUILD A NEW PAPER MACHINE IN CHINA UPM-Kymmene Corp will build a new fine paper machine at its Changshu mill and will also significantly increase the mill’s capacity to produce coated fine papers. The Changshu mill began operations in 1999, and in 2000 UPM-Kymmene became the sole owner of the mill. The new machine is scheduled to start-up during the first quarter in 2005. The main raw material of the mill is tropical hardwood pulp.
3
MARKET PROSPECTS
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Filtration Industry Analyst
After the 470 million investments, the annual production capacity of the mill will be 800 000 tons of fine paper. The initial plan is to produce approximately 200 000 tons of coated paper annually.
MARKET PROSPECTS
METSO TO SUPPLY 35M PAPER MACHINE TO CHINA Metso Paper is supplying a fine paper machine to Sun Paper’s Yanzhou mill in Shandong, China. The machine is scheduled to start up in September 2004, and will produce mainly offset paper. The total value of the order is close to 35 million. The current order is the fourth paper or board machine order that Sun Paper has placed with Metso in the past two years. This latest order will be delivered in cooperation with Metso’s Chinese joint venture, Valmet-Xian.
OIL & GAS KNOC AWARDS ENGINEERING SERVICES CONTRACT Joint venture services partners AMEC and Fluor Daniel will participate in South Korea’s first offshore gas development following the signing of an initial £6 million two-year services contract with the Korean National Oil Co (KNOC). AMEC and Fluor Daniel will support production, operations and maintenance activities on the new Donghae-1 field development – located 60 km off the coast of South Korea in the East Sea. The Donghae-1 project will be supported by an integrated AMEC Fluor Daniel team of experts based in Seoul
4
January 2003
and Ulsan with remote engineering assistance provided by AMEC’s global support unit in Aberdeen, Scotland and its operational centres in Jakarta and Manila.
HHI SECURES ANGOLAN FPSO CONTRACT Hyundai Heavy Industries’ Offshore & Engineering Division will supply an FPSO (floating, production, storage and offloading) unit worth US$750 million to ExxonMobil. The Kizomba FPSO B Project is to fabricate a superlarge offshore facility, which will be installed offshore of Angola in western Africa. The Hyundai division already won the same type of Kizomba A FPSO project in 2001. The Kizomba B FPSO Project will be installed by June 2005 and will be delivered to ExxonMobil after one month of test-run.
CONTRACTS AWARDED FOR COLOMBIAN REFINERY Empresa Colombiana de Petroleos (Ecopetrol) has awarded Technip-Coflexip and Euronext the contract for basic design and project management for the Cartagena Refinery Development project. The overall development project, worth about US$630 million, aims at increasing refinery capacity from 75 000 to 140 000 BPSD.
BP TO REINVEST IN UK REFINERY UNIT BP is to reinstate the fluidized catalytic cracking unit (FCCU) at its Grangemouth, UK refinery at a cost of US$41 million.
The FCCU has been shut down since June 2000, following the outbreak of a fire. Work is now getting under way to prepare the unit for resumption of operations in March 2004. The project is one of the largest taking place in any BP refinery across the world this year.
PETROCHEMICALS SHAW, JGC SIGN CHINESE EPC CONTRACT Joint venture partners Stone & Webster Inc and JGC Corp have won an engineering, procurement and construction contract with China National Offshore Oil Co and Shell Petrochemicals Co Ltd for the Lower Olefins Plant which forms the centrepiece of the Nanhai Petrochemical Complex. The complex is the largest joint venture project undertaken in China to date. The Lower Olefins Plant is an 800 000 metric tons per annum capacity ethylene plant to be located in Huizhou, Guangdong Province, China. JGC and Stone & Webster will jointly execute the engineering, procurement and construction of the plant. Project completion is targeted for September 2005.
The new LNG train will be built adjacent to the existing Oman LNG Complex at Qalhat, where two identical LNG trains, each with a capacity of 3.3 million tons per year, have been operating since early 2000. The new LNG train is aiming for an improved production capacity and is expected to be on stream by the end of 2005.
EDISON UNIT WINS US$220M CONTRACT Tecnimont, the engineering and construction company of the Edison Group, has been awarded an EPC contract, worth US$220 million, by a joint venture between CNOOC (China National Offshore Oil Corporation) Petrochemicals Investment Ltd and Shell Nanhai BV. The contract is part of the Nanhai Petrochemical Project, already under construction at Daya Bay Economic and Technical Development Zone, Huizhou City, China. Tecnimont’s scope of work includes three units producing 250 000 tons/year of low density polyethylene, 240 000 tons/year of polypropylene and 200 000 tons/year of linear low and high density polyethylene. The three plants are set to be completed in 2005.
ALUMINIUM CHIYODA SECURES OMAN LNG TRAIN EPC CONTRACT
ALCOA APPROVES ICELAND SMELTER
Chiyoda-Foster Wheeler and Co has won a contract in Oman for the detailed engineering, procurement and construction (EPC) of a liquefied natural gas (LNG) train at Qalhat, near Sur, Oman, with an additional LNG storage facilities as an option.
Alcoa is to build a US$1.1 billion 322 000 metric ton aluminium facility in Fjaroaal, Iceland. Scheduled to begin production in 2007, the Fjaroaal facility, is being designed to be the most environmentally friendly aluminium production plant in the world.
11:32
Page 3
January 2003
The project is owned by Companhia Vale do Rio Doce (CVRD), which is the largest diversified mining company in the Americas. Aker Kvaerner is currently acting as owner’s engineer for the development of the Sossego Copper Sulphide project, owned by a subsidiary of CVRD. The scope of the study included crushing, leaching, agglomeration, and solvent extraction–electrowinning facilities for processing 6–7 million tonnes per year of ore; and infrastructure necessary to support the projected operations. CVRD intends to develop between four and six copper deposits in Brazil in the next few years.
POWER GENERATION ICA FLUOR DANIEL TO BUILD 498 MW MEXICAN POWER PLANT Iberdrola Energia SA has awarded a contract to ICA Fluor Daniel for the construction of a combinedcycle power plant in Gomez Palacios, Durango, Mexico. The US$250 million La Laguna II plant, scheduled for completion in April 2005, will have a capacity of 498 MW and will provide electricity to the booming northern industrial zone of Mexico, as well as stabilizing the electrical grid in the area. Power generated will be sold to the Federal Electricity Commission, under its programme to develop independent power producers. The contract is a 30month, lump-sum, turnkey project that involves engineering, procurement, construction and start-up services. ICA Fluor Daniel is the industrial engineering company jointly owned by Fluor Corp and Empresas ICA Sociedad Controladora.
Filtration Industry Analyst
FW TO SUPPLY MWe TURNKEY BOILER PLANT IN POLAND Foster Wheeler Energia Oy and its Polish subsidiary, Foster Wheeler Energia Polska Sp zoo, have signed a contract with Poland’s Poludniowy Koncern Energetyczny (PKE) to supply a boiler island to a 460 MWe power plant at Lagisza in southern Poland. The contract is valued at approximately US$145.8 million. The new unit will be built alongside PKE’s existing 840 MWe power station at Lagisza, northeast of Katowice in Upper Silesia, and is part of an ongoing programme by PKE to replace outdated capacity with modern, highefficiency, environmentally friendly technologies. Operating seven other power stations in southern and western Poland, PKE is the country’s largest electricity utility, with 5056 MW of installed generating capacity.
SIEMENS POSTS POWER PLANT ORDERS WORTH 1.3 BILLION The Siemens Power Generation Group (PG) has secured 1.3 billion in power plant orders from Germany, Spain, Morocco and Mexico. The German utility GEW RheinEnergie AG has contracted PG to construct a 250 million combined heat and power plant in Cologne. In northern Spain, Siemens will build a 550 million 760 MW combined-cycle power plant. Siemens will construct a 384 MW combined-cycle plant, valued at over 400 million, near Tangiers, Morocco. The group also secured an 180 million order in Mexico for the construction of two simple-cycle power plants.
CHEMICALS SNC-LAVALIN TO BUILD AMMONIA PLANT IN AUSTRALIA SNC-Lavalin (SA) Inc has signed a contract worth more than US$300 million with Burrup Fertilisers Pty Ltd for the engineering, procurement and construction of an anhydrous ammonia production plant on the Burrup Peninsula in Karratha, Western Australia. The project includes an ammonia plant, with a production capacity of 2200 tonnes of ammonia per day, as well as utilities and associated facilities to support production. The ammonia plant technology will be supplied by Kellogg Brown and Root. Project management and engineering coordination will be based at SNC-Lavalin’s Perth, Australia office. Engineering work will start in January 2003, with construction completed within 30 months.
TECHNIPCOFLEXIP WINS CHINESE CONTRACT Technip-Coflexip is to build an integrated production facility for polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF) for BASF in the newly developed Shanghai Chemical Industry Park at Caojing, Shanghai, China. Technip-Coflexip’s scope of work covers engineering, procurement services as well as construction management. Engineering and procurement will be performed in TechnipCoflexip’s engineering centres in Kuala Lumpur and Shanghai. This project is a whollyowned investment of BASF
and will use BASF’s newly developed proprietary technology to convert butane directly to THF and subsequently to PolyTHF. With an annual capacity of 60 000 metric tons of PolyTHF and 80 000 metric tons of THF, it will be the largest PolyTHF production facility worldwide. The plants are scheduled for completion in the second half of 2004.
SUMITOMO, SHELL STUDY ETHYLENE PLANT PROPOSAL Sumitomo Chemical Co Ltd and Shell Chemicals Ltd are to jointly conduct a feasibility study for the possible construction of a new worldscale ethylene plant in Singapore. The envisaged ethylene plant will be located on Bukom Island, Singapore, with an ethylene production capacity of 1 million tonnes per year. If the feasibility study results in a decision to proceed, the plant is expected to start up in 2007, depending on supply and demand.
PULP & PAPER UPM-KYMMENE TO BUILD A NEW PAPER MACHINE IN CHINA UPM-Kymmene Corp will build a new fine paper machine at its Changshu mill and will also significantly increase the mill’s capacity to produce coated fine papers. The Changshu mill began operations in 1999, and in 2000 UPM-Kymmene became the sole owner of the mill. The new machine is scheduled to start-up during the first quarter in 2005. The main raw material of the mill is tropical hardwood pulp.
3
MARKET PROSPECTS
JanFIA.qxd
JanFIA.qxd
29/01/2003
11:32
Page 4
Filtration Industry Analyst
After the 470 million investments, the annual production capacity of the mill will be 800 000 tons of fine paper. The initial plan is to produce approximately 200 000 tons of coated paper annually.
MARKET PROSPECTS
METSO TO SUPPLY 35M PAPER MACHINE TO CHINA Metso Paper is supplying a fine paper machine to Sun Paper’s Yanzhou mill in Shandong, China. The machine is scheduled to start up in September 2004, and will produce mainly offset paper. The total value of the order is close to 35 million. The current order is the fourth paper or board machine order that Sun Paper has placed with Metso in the past two years. This latest order will be delivered in cooperation with Metso’s Chinese joint venture, Valmet-Xian.
OIL & GAS KNOC AWARDS ENGINEERING SERVICES CONTRACT Joint venture services partners AMEC and Fluor Daniel will participate in South Korea’s first offshore gas development following the signing of an initial £6 million two-year services contract with the Korean National Oil Co (KNOC). AMEC and Fluor Daniel will support production, operations and maintenance activities on the new Donghae-1 field development – located 60 km off the coast of South Korea in the East Sea. The Donghae-1 project will be supported by an integrated AMEC Fluor Daniel team of experts based in Seoul
4
January 2003
and Ulsan with remote engineering assistance provided by AMEC’s global support unit in Aberdeen, Scotland and its operational centres in Jakarta and Manila.
HHI SECURES ANGOLAN FPSO CONTRACT Hyundai Heavy Industries’ Offshore & Engineering Division will supply an FPSO (floating, production, storage and offloading) unit worth US$750 million to ExxonMobil. The Kizomba FPSO B Project is to fabricate a superlarge offshore facility, which will be installed offshore of Angola in western Africa. The Hyundai division already won the same type of Kizomba A FPSO project in 2001. The Kizomba B FPSO Project will be installed by June 2005 and will be delivered to ExxonMobil after one month of test-run.
CONTRACTS AWARDED FOR COLOMBIAN REFINERY Empresa Colombiana de Petroleos (Ecopetrol) has awarded Technip-Coflexip and Euronext the contract for basic design and project management for the Cartagena Refinery Development project. The overall development project, worth about US$630 million, aims at increasing refinery capacity from 75 000 to 140 000 BPSD.
BP TO REINVEST IN UK REFINERY UNIT BP is to reinstate the fluidized catalytic cracking unit (FCCU) at its Grangemouth, UK refinery at a cost of US$41 million.
The FCCU has been shut down since June 2000, following the outbreak of a fire. Work is now getting under way to prepare the unit for resumption of operations in March 2004. The project is one of the largest taking place in any BP refinery across the world this year.
PETROCHEMICALS SHAW, JGC SIGN CHINESE EPC CONTRACT Joint venture partners Stone & Webster Inc and JGC Corp have won an engineering, procurement and construction contract with China National Offshore Oil Co and Shell Petrochemicals Co Ltd for the Lower Olefins Plant which forms the centrepiece of the Nanhai Petrochemical Complex. The complex is the largest joint venture project undertaken in China to date. The Lower Olefins Plant is an 800 000 metric tons per annum capacity ethylene plant to be located in Huizhou, Guangdong Province, China. JGC and Stone & Webster will jointly execute the engineering, procurement and construction of the plant. Project completion is targeted for September 2005.
The new LNG train will be built adjacent to the existing Oman LNG Complex at Qalhat, where two identical LNG trains, each with a capacity of 3.3 million tons per year, have been operating since early 2000. The new LNG train is aiming for an improved production capacity and is expected to be on stream by the end of 2005.
EDISON UNIT WINS US$220M CONTRACT Tecnimont, the engineering and construction company of the Edison Group, has been awarded an EPC contract, worth US$220 million, by a joint venture between CNOOC (China National Offshore Oil Corporation) Petrochemicals Investment Ltd and Shell Nanhai BV. The contract is part of the Nanhai Petrochemical Project, already under construction at Daya Bay Economic and Technical Development Zone, Huizhou City, China. Tecnimont’s scope of work includes three units producing 250 000 tons/year of low density polyethylene, 240 000 tons/year of polypropylene and 200 000 tons/year of linear low and high density polyethylene. The three plants are set to be completed in 2005.
ALUMINIUM CHIYODA SECURES OMAN LNG TRAIN EPC CONTRACT
ALCOA APPROVES ICELAND SMELTER
Chiyoda-Foster Wheeler and Co has won a contract in Oman for the detailed engineering, procurement and construction (EPC) of a liquefied natural gas (LNG) train at Qalhat, near Sur, Oman, with an additional LNG storage facilities as an option.
Alcoa is to build a US$1.1 billion 322 000 metric ton aluminium facility in Fjaroaal, Iceland. Scheduled to begin production in 2007, the Fjaroaal facility, is being designed to be the most environmentally friendly aluminium production plant in the world.