Global Project News: May 2013

KBR has won a contract with Pacific NorthWest LNG Ltd, a subsidiary of PETRONAS and Japan Petroleum Exploration Co. Ltd, to execute front-end engineering and design (FEED) and early detailed engineering work for a world-scale LNG export facility at Lelu Island near Prince Rupert, British Columbia. KBR is partnered with JGC Corp. for the project to process shale gas produced from BC’s North Montney region into LNG for export. The contract involves a two-train LNG plant with a capacity of 12,000ktpa and associated utilities, storage, loading, ship berthing and personnel accommodation facilities.

BP and partners Total, Petrobras and Petrogal have been named winning bidders for eight deepwater blocks offshore Brazil in the Brazilian National Petroleum Agency’s (ANP’s) 11th bid round.

Jacobs Engineering Group Inc. has renewed a frame agreement with Borealis for work at its facilities in Stenungsund, Sweden. Under a five-year frame deal, Jacobs is providing engineering, procurement, project management and construction management services on a variety of projects, each of which is expected to have a total installed cost varying in range up to $11m. Sweden's only polyethylene (PE) producer, Borealis’ Stenungsund facilities include a PE plant, a cracker for ethylene and propylene production, and an innovation center focused on R&D for infrastructure markets.

KBR is to provide turnaround services for a Gulf Coast chemical company's pyrolysis gasoline (pygas) unit. As general contractor it is to perform regulatory maintenance, mechanical fixed equipment, piping systems, electrical and instrumentation services for the pygas unit, as well as all aspects of event management, project controls and subcontractor management. The work is expected to increase the operating unit efficiency.

Spanish poultry processing firm, Procavi SL has installed GE membrane bioreactor (MBR) technology at a wastewater treatment plant. The LEAPmbr technology – the first such installation in Spain – is helping to improve water quality and double the water treatment capacity. The previous wastewater treatment plant was producing 600 m3/day, while today it can process two times that amount—1,200 m3/day. (More details)

Foster Wheeler has been awarded a contract by OJSC Gazpromneft Moscow Refinery to provide FEED documentation in accordance with Russian norms, for a major investment, termed the Combined Oil Refinery Unit (CORU) Project, at the Moscow Refinery. The project is part of the implementation of Gazpromneft’s OJSC Moscow Refinery Revamping and Upgrading Program, under which the refinery will be expanded up to 2020 to process an additional six million tons of crude oil per year and produce transportation fuels to Euro-V standards.

Maersk Oil Qatar A/S has awarded WorleyParsons Qatar a four-year 'general design contract' to conduct engineering design modifications and material definition for works associated with the Al Shaheen offshore oil production facilities operated by Maersk Oil in Qatar. The Al Shaheen field is is operated under a production sharing agreement on behalf of Qatar Petroleum. The contract, which includes brownfield design engineering services ranging from front-end engineering to detailed design, is worth around $90 million.

WorleyParsons has signed a $93m an engineering, procurement and construction management contract with the Alderon Iron Ore Corp and Kami Mine Ltd Partnership for the development of the Kami Iron Ore project in Canada. Production is scheduled to commence in Q4 2015.

Dow Chemical Co. has awarded Fluor Corp. a contract to execute a significant portion of its US Gulf Coast investments. Fluor’s scope includes the engineering, procurement and construction (EPC) of a propane dehydrogenation unit, an ethane cracker, and associated power, utilities and infrastructure facility upgrades to support each unit. The facilities will be constructed in Dow's Oyster Creek facility in Freeport, Texas.


BP Remediation Management (BP) has awarded two framework agreements to WorleyParsons for the provision of consulting services across BP’s operating business lines outside of North America. The work will be primarily associated with supporting BP projects over a three-year term across upstream, refining and marketing, alternative energy, shipping, and remediation management businesses. The BP Lighthouse contract includes business resilience and spill response planning. The BP Atlas contract was awarded to WorleyParsons and its JV partner Golder Associates and encompasses remediation engineering, decommissioning, waste management and environmental services.

Saudi Electricity Company (SEC) has awarded WorleyParsons an integrated EPCM services contract for two of its new greenfield combined cycle gas turbine based power plants, Power Plant 13 and Power Plant 14. Each of these two power plants will be capable of generating 1650 megawatts under reference site conditions.

TMO Renewables
, a UK developer of second generation biofuels technology, and Usina Santa Maria Ltda are to form a JV to build the first commercial production plant in Brazil to convert sugar cane waste (bagasse) to cellulosic bioethanol. TMO is to build, own and operate a 10-million-litre second generation ethanol pilot plant. This will be followed by the construction of full-scale industrial plant, alongside a sugar mill owned by Usina Santa Maria at Cerquilho, São Paulo state. The facility is due to go into production in 2014.

Abu Dhabi National Oil Co. (ADNOC) has chosen Shell to participate in a 30-year JV to develop and operate the major Bab sour gas reservoirs in Abu Dhabi. Shell beat off competition from Total for the technically challenging contract, reportedly worth up to £6.5 billion. It will hold a 40% stake in the JV, with ADNOC holding 60%. The two companies will now enter a period of commercial and technical work leading to the development of the sour gas reservoirs, 150km south-west of the city of Abu Dhabi.

Global nylon producer INVISTA has awarded KBR a contract by to provide construction services for their next-generation manufacturing technology production facility located in Orange, Texas. KBR is to provide pre-construction and multi-discipline construction services for mechanical, equipment settings, structural steel, electrical and instrumentation.

Pacific Gas and Electric Co. has awarded Fluor Corp. an extension of a 2010 operations and maintenance contract for work at PG&E’s Diablo Canyon Power Plant Units 1 & 2 in Avila Beach, California. At Diablo Canyon, which produces 18GW-hours annually, Fluor will continue to provide ongoing maintenance, modification and outage services for PG&E's two nuclear generating units. The work encompasses mechanical, electrical and civil tasks during non-outage and outage periods.

National Instruments has partnered with Prolucid LocalGrid Technologies Inc. to build a next-generation energy management system for Toronto Hydro-Electric System Ltd. Funded by nearly $2.5 million in grants from Canada’s ecoENERGY Innovation Initiative and Ontario’s Smart Grid Fund, the project takes advantage of distributed intelligence technology to manage renewable energy generated by the community onto the power grid.

Qatar Petroleum (QP) has signed a JV agreement with Total, Idemitsu, Cosmo, Marubeni and Mitsui for the new Laffan Refinery 2 (LR2) Project. The new LR2 condensate refinery is similar to the first Laffan Refinery (LR1), which started operations in 2009, with a similar processing capacity of 146,000 barrels per day. Construction of the new $1.5 billion project is expected to be completed in the second half of 2016.

Metso has won a major order for process optimisation services from Klabin, a Brazilian packaging paper and board producer. The contract covers the supply of its Process Optimization Business Solution which involves working with Klabin to increase production efficiency at the company's Otacílio Costa and Correia Pinto mills.

Emerson Process Management’s Smart Wireless technology is helping RWE Gas Storageraise the capacity of its Dolní Dunajovice underground gas storage facility in the Czech Republic. Installation of five Smart Wireless networks and more than 100 wireless measurement devices has increased visibility into the process, enabling the plant to improve control and run closer to its capacity. Automating data collection has also eliminated manual rounds at the plant, improving operator efficiency and safety. (Details)

Yokogawa Electric Corp. is to supply the integrated automation and safety system for the new liquefaction trains at Cheniere’s LNG facility in Sabine Pass, Louisiana. The plant is being developed by its Cheniere subsidiary Sabine Pass Liquefaction LLC (SPL). SPL is the first company with US Dept of Energy approval to export LNG to non-Free Trade Agreement countries. The development of liquefaction services at the Sabine Pass LNG receiving terminal in Cameron Parish, LA, will transform the terminal into a bi-directional facility capable of liquefying and exporting natural gas and importing and re-gasifying foreign-sourced LNG.

Santos, one of Australia’s largest domestic gas producers, has selected Jacobs Engineering Group be a member of its panel of contractors for services to its Eastern Australia Business Unit (EABU). As a member of the panel, Jacobs is providing engineering, design and project management services to Santos for a range of brownfield, environmental and water, flow-line and greenfield projects (excluding major strategic projects) for its oil and gas assets throughout the central and east coast regions of Australia

Jacobs Engineering Group Inc. has been awarded a contract from Sanofi Pasteur to provide detail engineering services for the expansion and refurbishment of its Flu Vaccine Facility in Ocoyoacac, Mexico. This is the second phase of the Aguila Project; the first phase was executed in 2010 by Jacobs’ offices in Lyon, France and Mexico City, Mexico. Jacobs is executing this detail engineering phase of the project from its Mexico operations. The overall goal of the project is to increase plant production capacity.

CB&I has been awarded a contract valued in excess of US$80 million by JKC Australia LNG Pty Ltd. The scope of work includes the engineering, procurement, construction and pre-commissioning for non-cryogenic storage tanks for the Ichthys Project LNG facilities in Darwin, Northern Territory, Australia. Project completion is scheduled for 2015.

ABB has been appointed the main electrical contractor (MEC) for a new semi-submersible central processing facility (CPF) at the Ichthys oil and gas field in the Timor Sea off Western Australia. The order is valued at $15 million. ABB was awarded the MEC contract by the engineering, procurement and construction (EPC) contractor for the central processing facility, Samsung Heavy Industries. When completed in 2016 the CPF will be the largest offshore production facility in the world.

Total E&P Canada Ltd has awarded a significant change order to expand WorleyParsons’ scope of services for the Total Joslyn North Mine Extraction Project. The additional work scope includes the Design Validation and Engineering Design Specification (EDS) phases of the project with estimated revenue of $50 million. (Details)

Brazil's packaging paper producer Klabin has extended its partnership with Metso: awarding the Finnish group a contract to supply its 'process optimization business solution'. Metso is also to work with Klabin to increase production efficiency at the company's Otacílio Costa and Correia Pinto mills. The contract scope represents the largest contract for Metso in South America and the second largest global order. 

Linde Group has been awarded a contract to build a natural gas terminal in the town of Emden in northern Germany. The deal is worth around EUR 260 million. The contract was awarded by Norwegian state-owned company Gassco AS on behalf of Gassled JV. Norway is one of Germany's most important energy suppliers. The new natural gas terminal will replace the 1977 Norsea Gas Terminal, which is currently being operated by Gassco. The terminal will distribute natural gas from Norwegian-owned gas fields in the North Sea to Germany.

CB&I has been awarded a contract valued in excess of $180 million for the engineering, procurement, construction and commissioning work for LNG storage tanks on a project in Asia. Project completion is scheduled for 2015.

Foster Wheeler has been awarded a contract by GS E&C for the design and supply of one circulating fluidized-bed (CFB) steam generator for the Dangjin 4 Biomass Power Plant Project for GS EPS, a subsidiary of GS Group. The plant will be located in Dangjin, a city in South Chungcheong Province, South Korea. It will design and supply the 105 MWe CFB steam generator and auxiliary equipment for the boiler island, including a Foster Wheeler baghouse for flue gas cleaning. The steam generator will be designed to burn palm kernel shells with co-firing of coal, and wood pellets as back-up fuel, while meeting applicable environmental regulatory requirements.

Jacobs Engineering Group Inc. has been awarded a contract by Jiangsu Sailboat Petrochemical Co., Ltd. for the design of a sulfuric acid regeneration plant in Lianyungang, Jiangsu, China. Jacobs is providing the process design package, detailed design for critical equipment, design and supply of Jacobs' proprietary Chemetics equipment, as well as technical advisory services for construction and commissioning of the plant. The regeneration plant is expected to treat spent acid from a new methyl methacrylate (MMA) and Acrylonitrile (AN) production facility, and is the first regeneration plant in mainland China to use a combination of Jacobs’ proprietary SAR (Sulfuric Acid Regeneration) and SAC (Sulfuric Acid Concentration) technologies in an effort to reduce overall energy requirements for the facility.

Jacobs Engineering Group Inc. has been selected by the Shell Company of Australia Ltd. for its Clyde Terminal Conversion Project in Sydney, Australia. Under the terms of the contract, Jacobs is initially providing a Basic Design and Engineering Package (BDEP) to convert the Clyde Refinery and associated satellite Gore Bay Terminal into a competitive product import terminal. Subject to subsequent approval, Jacobs is also expected to provide Engineering, Procurement and Construction Management (EPCm) services in the delivery phase of the project. (Details)

Enomondo Srl is using Emerson Process Management’s Smart Wireless technology to monitor a complex fuel pre-treatment operation, an incineration process, and a new boiler at its biomass power plant in Faenza, Italy. The partnership between Caviro Distillerie and Herambiente has been able to optimise control of the process: contributing to an estimated 5% increase in overall operational efficiency. The availability of diagnostic data also improved predictive maintenance procedures. (Details)