Mongstad refinery upgrade due study

Statoil has let a contract to Foster Wheeler AG’s Global Engineering & Construction Group to study feasibility of an upgrade of the 203,000-b/cd Mongstad refinery.

Foster Wheeler said the upgrade is expected to include installation of a vacuum distillation unit and new diesel hydrotreaters.

The project aims to address crude-quality flexibility requirements and to increase production of diesel, including ultralow-sulfur diesel.

A study of technologies and costs is due by yearend.

The refinery is owned by Mongstad Refining, in which Statoil holds 79% interest and Shell the rest.

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