Press digest from last week

07.08.2017

SNC-Lavalin moves into EPC phase of ammonia plant project

SNC-Lavalin is pleased to announce that it has received a notice to proceed from Salalah Methanol Company LLC, with  the Engineering, Procurement and Construction (EPC) phase of its anhydrous liquid ammonia plant project, located in the city of Salalah, Sultanate of Oman.

This phase follows the early works program, which was awarded earlier this year. The EPC work has been authorized by SMC while it concludes the final stages of the project’s financial arrangements. 

“We are very excited about this opportunity to pursue our work with SMC,” said Etienne Cabanes, Senior Vice President, Europe, Middle-East and North Africa, Mining & Metallurgy. “We look forward to ensuring the successful execution of this project with the utmost care for quality, safety, environment and the community in Salalah.”

“SNC-Lavalin is pleased to enter into this next phase of the Salalah ammonia project, which is of great importance for SMC and the Sultanate of Oman”, said José J. Suárez, President, Mining & Metallurgy, SNC-Lavalin. “This project demonstrates that our strong expertise is recognized by clients and major financial institutions alike, and we are committed in offering our client and the region a world-class project that they are going to be proud of.” 

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Italian Snam, Albanian Albgaz ink MoU on gas market development

Italian gas infrastructure company Snam and Albania’s gas infrastructure operator Albgaz have recently signed a memorandum of understanding (MoU) to develop collaboration opportunities, said a message published on the Snam website July 31.

The MoU is aimed at supporting the start and development of an infrastructure system that will be managed by the Albanian company. The agreement comes in relation to the gas market development that will start with the TAP pipeline crossing Albania.

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

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Anadarko advances Mozambique LNG project

Anadarko Petroleum Corp., The Woodlands, Tex., has finalized two agreements with the government of Mozambique that would allow the firm to design, build, and operate marine facilities for its LNG project in the northern part of the country.

The finalization follows the publication of Mozambican government decrees approving the agreements.

"This is a key milestone on the path to a final investment decision (FID) for our initial two-train LNG project," commented Mitch Ingram, Anadarko executive vice-president, global LNG. "It marks the completion of the core components of the legal and contractual framework with the government. We will now look ahead with our plans to begin resettlement, which will enable the construction of the LNG plant.

“In addition, we continue to make good progress with our efforts to secure long-term LNG sales and purchase agreements (SPA) with premier buyers, and we will intensify our work to put in place the necessary financing for the project,” Ingram said. “We expect to take FID once the SPAs and financing are in place."

Anadarko is developing Mozambique's first onshore LNG plant consisting of two initial LNG trains with a total capacity of 12 million tonnes/year to support Golfinho-Atum field located entirely within Offshore Area 1, where the firm and its partners have discovered 75 tcf of recoverable natural gas resources.

Anadarko operates Offshore Area 1 with 26.5% working interest. Partners are Empresa Nacional de Hidrocarbonetos EP (ENH) with 15%, Mitsui E&P Mozambique Area1 Ltd. 20%, ONGC Videsh Ltd. 16%, Bharat PetroResources Ltd. 10%, PTT Exploration & Production PLC 8.5%, and Oil India Ltd. 4%.

Eni SPA is simultaneously advancing its Coral South floating LNG (FLNG) project in Area 4 offshore Mozambique (OGJ Online, June 27, 2017). That project, which includes the installation of a 3.4 million-tpy FLNG facility fed by six subsea wells, is expected to start up in mid-2022.

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Gazprom lays foundation for first processing trains at Amur gas complex

PJSC Gazprom has started construction work on major units for subsidiary OOO Gazprom Pererabotka Blagoveshchensk's (GPB) 42 billion-cu m/year grassroots Amur natural gas processing plant in Russia’s far-east region, about 15-km outside of Svobodny on the banks of the Zeya River  (OGJ Online, Dec. 19, 2012).

Russian President Vladimir V. Putin approved and witnessed laying of foundation for the site’s first processing unit In an Aug. 3 ceremony, the government of Russia said in a release.

While construction of infrastructure and other site-preparation activities for the project began in October 2015, this latest stage of what will be a phased construction of the complex’s six 7-cu m/year production lines lays the official groundwork for Amur’s first two processing trains scheduled for startup in May 2021, said Alexei Miller, Gazprom’s chief executive officer.

An integral part of Gazprom’s implementation of its Eastern Gas Program (EGP) to integrate field developments, pipeline, and natural gas production centers in East Siberia and Russia’s Far East, the €11.5-billion Amur complex will process multicomponent gas it receives from EGP’s Irkutsk and Yakutia gas production centers via the Power of Siberia gas pipeline to support Gazprom’s commitment to supply 38 billion cu m/year of Russian natural gas into China over 30 years beginning on Dec. 20, 2019, the formal commissioning date for the Power of Siberia gas trunkline, according to Miller.

In addition to producing about 2.5 million tpy of ethane, 1 million tpy of propane, 500,000 tpy of butane, and 200,000 tpy of pentane-hexane fraction, the Amur gas processing complex also will produce as much as 60 million-cu m/year of helium based on feedstock from the Chayandinskoye field, which together with the company’s other reserves in East Siberia, forms one of the largest helium reservoirs in the world (OGJ Online, July 29, 2015).

The August foundation-laying ceremony follows GPB’s recent contract award to China Gezhouba Group Corp., to provide construction and assembly services for process equipment at Amur, as well as earlier awards to Linde AG for licensing of its proprietary cryogenic gas separation technology for all phases of the gas-processing complex, and to a consortium of Maire Tecnimont SPA subsidiary Tecnimont SPA and Sinopec Engineering (Group) Co. Ltd. subsidiary Sinopec Ningbo Engineering Corp. for all engineering, procurement, construction, commissioning, and performance testing services for the project’s utilities, infrastructure, and off-site installations (OGJ Online, July 5, 2017; Jan. 21, 2016).

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Nuberg wins $17.76mn hydrogen peroxide project in Egypt

El Nasr Co for Intermediate Chemicals (NCIC) has entrusted Nuberg the engineering and construction of hydrogen peroxide plant in Giza, Egypt, from concept to commissioning, with a contract for technology.

The US$17.76 million turnkey project will manufacture hydrogen peroxide with production capacity of 70 tons per day (50 percent H2O2) technical, chemical and food grade.

Nuberg's scope of services includes technology, process know-how, basic and detailed engineering, project management, supply and supervision of erection and construction work as well as supervision services during start-up and commissioning.

Hydrogen peroxide technology licensor for the project is EB Nuberg, a Swedish R&D firm specialising in developing technologies for specialty chemicals. EB Nuberg will offer proprietary, high-yield hydrogen peroxide technology and process design services for the establishment of facility.

The plant production process will be based on the latest, state-of-the-art auto-oxidation technology developed and improvised by EB Nuberg Sweden over the years, having most efficient process design for hydrogen peroxide in comparison to available technologies in market.

The hydrogen peroxide manufacturing process involves cyclic hydrogenation and oxidation of the working solution followed by extraction of crude H2O2 from the working solution. Thus the plant will comprise three main sections viz. hydrogenation, oxidation and extraction section.

This project comes as another milestone for Nuberg in Egypt, as it is the fourth consecutive specialty chemical turnkey project for the company. Nuberg has already got three turnkey projects in Egypt namely, caustic soda plant for Egyptian Petrochemical Company in Alexandria, calcium chloride plant for TCI Sanmar Chemical in Port Said and sulphuric acid plant for AGROCHEM in Alexandria.

Tyagi said: "We are glad that our capabilities and world-class project execution quality are being recognised internationally. Egypt is one of the most promising markets for us. We are thankful to El Nasr Co for Intermediate Chemicals for awarding this hydrogen peroxide project to Nuberg. This newly signed agreement will strengthen our strategic position in Egypt, where we are already executing number of turnkey projects."

Hydrogen peroxide is an environment-friendly chemical compound with the formula H2O2. In its pure form, it is a colourless liquid, slightly more viscous than water. It is mainly used as a bleaching agent in textile, and paper and pulp industry. It is a key raw material in the production of bleaching agents.

In addition, it is also used in other industries such as wastewater treatment, organic peroxides, medical and cosmetics. The hydrogen peroxide produced in the plant will be used in pharmaceutical, cosmetic, water, food processing, and paper and pulp industries.

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Jacobs Signs Global Enterprise Framework Agreement With Shell

Jacobs Engineering Group Inc. (NYSE: JEC) has signed a global enterprise framework agreement (EFA) renewal with Shell Oil Co. to provide concept, front-end engineering, detailed design, procurement, project management, construction management and construction services for Shell projects globally.

The agreement aligns with Shell’s ongoing efforts to transform the way its projects are delivered by improving capital and financial efficiencies.

“This agreement fosters fresh and innovative project delivery solutions to help meet our joint goal of increased capital efficiency and economic results,” said Gary Mandel, petroleum and chemicals president for Jacobs.

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