Survey shows increase in gas processing, pipeline construction

Oil & Gas Journal's semiannual Worldwide Construction Update shows an increase in natural gas processing and pipeline construction activity compared with the previous edition of the update (OGJ, Apr. 4, 2011, p. 44). Following are details from the latest survey, which is available on OGJ Online (see note below).

Refining

In October, North West Redwater Partnership (NWRP) let a contract to Fluor Corp. to provide front-end engineering and design (FEED) services for a 50,000-b/d bitumen refinery project in Alberta. Project cost is $5 billion (Can.); completion is slated for 2014 (OGJ Online, Oct. 6, 2011).

NWRP's bitumen refinery is the only project in the world to combine gasification technology with an integrated carbon dioxide management plan for economic carbon capture and storage through enhanced oil recovery.

The refinery, which will be north of Edmonton, Alta., will use oil sands bitumen to produce diesel, diluent, naphtha, and other related products. NWRP is a joint venture of North West Upgrading Inc. and Canadian Natural Resources Ltd.

Laffan Refinery Co. Ltd. let a lumpsum, front-end engineering and design contract of an undisclosed sum to Technip SA for the Laffan refinery's Phase 2 expansion. The planned expansion will double the refinery's current throughput capacity to 292,000 b/sd. The facility will be fully operational by first-quarter 2016. Qatargas, which operates the Laffan refinery, said FEED contract work is slated to be completed by first-quarter 2012. The engineering, procurement, and construction contract is expected to be awarded by third-quarter 2012.

Meanwhile, Kuwait's Oil Minister Mohammad al-Busairy said the Supreme Petroleum Council (SPC) has approved construction of the 615,000 b/d Al-Zour refinery (OGJ Online, July 1, 2011). Development of the Al-Zour refinery is expected to comprise two phases. During Phase 1, the facility will process 300,000 b/d of crude oil for the domestic market. Under Phase 2, it will process a further 315,000 b/d of oil.

Construction is under way on the 300,000-b/d refinery to be operated by state-owned Indian Oil Corp. at Paradip, Orissa, on India's eastern coast. IOC expects the project to be completed by first-quarter 2013. Last year, IOC said it expected commissioning to take place in March 2012 (OGJ, Nov. 29, 2010, Newsletter).

State Co. for Oil Projects (SCOP), part of the Iraqi Ministry of Oil, has awarded Axens IFP Group Technologies basic design and license contracts for construction of a refinery in Nassiriya, the supply company announced (OGJ Online, Oct. 5, 2011). Axens will supply the following process technologies:

• H-Oil_RC technology for the hydroconversion of 52,000 b/sd of vacuum residue. The plant will convert vacuum resid to low-sulfur distillates and produce a low-sulfur residue. H-Oil technology is employed for heavy oil residue conversion (H-Oil_RC) and for difficult distillate conversion (H-Oil_DC) applications.

• Prime-D, gas oil desulfurization hydrotreater. The 105,000-b/sd unit will produce ultralow-sulfur diesel with less than 10 ppm of sulfur.

• Prime-K, kerosene desulfurization hydrotreater with a processing capacity of 24,000 b/sd.

• Butane isomerization unit with a process capacity of 11,900 b/sd.

The refinery will have a capacity of 300,000 b/sd of domestic crude oil and deliver high-quality products mainly for the domestic market.