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Middle East

06.01.2011  |  Meche, Helen,  Hydrocarbon Processing Staff, Houston, TX

Keywords: [construction] [natural gas] [licensing] [EPC] [polyolefin] [refinery] [FEED] [LPG] [styrene]

GS Engineering & Construction Corp. has signed a $556 million deal to build a gas storage facility in Kuwait. Under the deal with the state-run Kuwait National Petroleum Co., GS Engineering will complete construction of 10 storage tanks for butane and propane gases in Kuwait within 36 months.


Merichem Co. has a licensing and equipment-supply agreement with a leading supplier of direct reduced iron (DRI) facilities to install a LO-CAT hydrogen sulfide treatment system at a new grassroots facility in the Mideast. The 1.43 metric-tpd LO-CAT unit, provided through the Merichem Gas Technologies business unit, will be integrated into the overall DRI processing facility, with a proposed startup date during the fourth quarter of 2012. The LO-CAT unit will be treating 70,000 Nm3/hr of natural gas with a H2S removal efficiency of 99.9%, far exceeding current environmental standards. This will be the seventh LO-CAT unit to be installed in a DRI facility worldwide.


Saudi Organometallic Chemicals Co. (SOCC), a joint venture equally owned by SABIC affiliate Saudi Specialty Chemical Co. (Specialty Chem) and Albemarle Netherlands B.V. (a wholly owned subsidiary of Albemarle Corp.), have selected Samsung Engineering to provide engineering, procurement and construction services for the SOCC aluminum alkyls manufacturing facility in Jubail, Saudi Arabia.

Samsung will immediately begin the detailed engineering in Seoul, Korea. The manufacturing facility will be constructed in Jubail Industrial City, Saudi Arabia, at the Specialty Chem site, with a mechanical completion date projected for the third quarter of 2012. The SOCC facility will initially manufacture 6,000 metric tpy of tri-ethyl aluminum, the key co-catalyst used in polyolefin production.


Shoaibi Group has signed a joint-venture agreement with Prosernat of France to form Prosernat Saudi Arabia Ltd., (PNSA). Under the joint venture, PNSA will offer a full range of services for natural gas treatment as well as CO2 capture, including process technologies, studies, procurement, construction, commissioning, startup, operation and maintenance for field gas separation, oil desalting and gas treatment facilities, including gas dehydration, gas sweetening, NGL recovery, sulfur recovery and modular units in the Kingdom of Saudi Arabia.


International Petroleum Investment Co. (IPIC) is proceeding with the implementation of a 200,000-bpd refinery at Fujairah, UAE, at an estimated cost of
$3 billion.

The Fujairah Refinery project, a strategic initiative of the government, will be located near the new Abu Dhabi crude-oil pipeline Main Oil Terminal and the UAE deepwater export terminals in Fujairah. It will be designed to process UAE crudes such as Murban, Upper Zakum and Dubai. A number of financing options—including, but not limited to, project financing—are under consideration.

The project management consultancy (PMC) contract for the front-end engineering and design (FEED) phase of the Fujairah Refinery was awarded to Shaw Stone & Webster in April 2011. The project is now in pre-FEED, with project completion anticipated to occur by mid 2016.


A subsidiary of Foster Wheeler AG’s Global Engineering and Construction Group has a contract with Bahrain National Gas Co. (BANAGAS) to undertake a feasibility study for the modifications and expansion of the BANAGAS liquefied petroleum gas (LPG) facilities in Bahrain. The expansion will allow the plant to increase its gas throughput, which is planned to reach 285 million scfd of associated gas and 18 million scfd of refinery offgas by 2014.

Foster Wheeler will develop options for modifications to, and expansion of, the existing facilities in line with the new throughput objectives. Foster Wheeler will then undertake a techno-economic evaluation to select the preferred option(s) for implementation. The study is scheduled for completion in the third quarter of 2011.


The Shaw Group Inc. has a contract to provide front-end engineering and design (FEED) for the replacement of two liquid storage tanks for Abu Dhabi Gas Liquefaction Co. (ADGAS). The tanks are part of the ADGAS liquefied natural gas (LNG) and liquefied petroleum gas (LPG) facilities on Das Island, the center of storage and export operations for oil and gas extracted from the offshore fields of Abu Dhabi, UAE. The tanks hold paraffinic naphtha, a byproduct of the island’s processing facilities. ADGAS is a subsidiary of Abu Dhabi National Oil Co. (ADNOC).

The FEED work will help ADGAS increase the capacity of the tanks and loading systems to match modern naphtha tanker capacities.


Badger Licensing LLC has a contract to provide proprietary technology and basic engineering for a 300,000 metric-tpy ethylbenzene/styrene monomer (EBSM) plant for Egyptian Polystyrene Production Co. (EStyrenics). The plant will be located within the El Dekila port site in Alexandria, Egypt. The contract covers technology licensing and the front-end engineering design (FEED) package, along with operations training and commissioning support.

“Badger’s technology and engineering services will provide the foundation for this EBSM plant, representing the second phase of a larger styrenics complex that will support economic growth and job creation in Egypt through the development of the country’s petrochemical master plan,” said Mohamed Hafez, chairman and chief executive officer of Egyptian Polystyrene Production Co. “The construction of the first phase of the styrenics complex, including a 200,000 metric-tpy polystyrene unit, is nearing completion.”


Saudi International Petrochemical Co. (Sipchem) has signed a joint-venture agreement with Hanwha Chemical Corp. to build a polymers compounding plant to produce special resin grades to be used to manufacture wire and cable products. The plant will be built at Sipchem’s site in Jubail Industrial City, Kingdom of Saudi Arabia, with an estimated cost of around $60 million, and is expected to start production during the second quarter of 2013. This plant comes as a part of Sipchem’s third-phase expansion program.

The new Wire & Cable Polymers Compounding Co. will be owned 50% by Sipchem and 50% by Hanwha Chemical. The products will be marketed by the new company in the Middle East and Europe. The major feedstock for the plant, low-density polyethylene (LDPE) and ethylene vinyl acetate (EVA), will be sourced from the International Polymers Co., one of Sipchem’s affiliates.


Saudi Basic Industries Corp. (SABIC), Asahi Kasei Chemicals Corp. and Mitsubishi Corp. have signed a strategic joint-venture (JV) agreement to form a limited liability company, Saudi Japanese Acrylonitrile Co., in Saudi Arabia. The company will build a plant for manufacturing acrylonitrile (AN) and sodium cyanide (NaCN), with subsequent sales and distribution to be carried out by the partners. The agreed plan is to establish world-scale plants with capacities of 200,000 metric tpy of AN and 40,000 metric tpy of NaCN at one of the SABIC affiliates’ sites in Jubail Industrial City, Saudi Arabia.

Under the agreement, the three partners will now begin formulating the basic engineering design and perform advance work on a detailed business plan. The partners are targeting the development of a globally competitive project with best-in-class industrial performance. The project will also focus on carrying out all necessary details for the JV incorporation and project evaluation, implementation and execution activities with final decision on capital expenditure during 2012.  HP



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