Sonangol, Eni let contract for Luanda refinery upgrades

As part of its earlier cooperation agreement with state-owned Sonangol EP, Eni SPA has let a contract to a subsidiary of Maire Tecnimont SPA for an upgrading project involving installation of two new processing units as well as other utilities and offsites at Sonangol’s 65,000-b/d refinery in Luanda, Angola.

As part of its earlier cooperation agreement with state-owned Sonangol EP, Eni SPA has let a contract to a subsidiary of Maire Tecnimont SPA for an upgrading project involving installation of two new processing units as well as other utilities and offsites at Sonangol’s 65,000-b/d refinery in Luanda, Angola.

As part of the $200-million contract, KT-Kinetics Technology will provide engineering, procurement, and construction services for a naphtha hydrotreater, including a naphtha splitter, and a catalytic reforming unit, Maire Tecnimont said.

Scope of work on the project also will include some unidentified utilities and offsites, as well as necessary tie-ins for integration with the existing refinery, the service provider said.

Scheduled for start-up and testing in about 2 years from the start date of the project, the new units will enable the refinery to quadruple the gasoline production to 1,100 tonnes/day from 280 tonnes/day, as well as improve product quality while minimizing the site’s global environmental footprint.

The proposed project plays a crucial role in Angola’s national target to reduce fuel imports and reach independence in its fuel supply, which currently is produced by the Luanda refinery, the country’s sole facility, Maire Technimont said.

The proposed project joins other initiatives in the country’s plan to reduce volumes and costs associated with imported fuel, including Sonangol’s recently signed agreements with the United Shine consortium for construction of a new 60,000-b/d refinery in Cabinda as well as proposals for construction of new refineries in Luanda and Lobito (OGJ Online, June 4, 2019).

Sonangol-Eni partnership

Sonangol first signed an agreement with Eni for technical and financial assistance with Angola’s refining sector in June 2018 (OGJ Online, Nov. 14, 2018).

The cooperative agreement specifically seeks Eni’s help in optimizing the Luanda refinery via installation of a platforming unit as well as provision of technical assistance aimed at improving reliability of the production processes, production quality, and increasing gasoline production capacity.

Financing under the agreement with Eni was to be made in two modalities, including an estimated $60 million that will include planning and organization of the refinery’s general maintenance turnaround and as much as $120 million that would cover installation of a unit to increase gasoline production at the site, Sonangol said.

The June 2018 agreement between Sonangol and Eni follows a memorandum of understanding between the companies signed in November 2017 establishing principles by which the parties would jointly assess new investment opportunities in the refining, renewable energy, exploration, and natural gas sectors.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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