Press digest from last week

09.10.2017

Burckhardt Compression provides turn-key solution for LDPE plant overhaul

The petrochemical company Versalis adopted a single-source supplier concept and awarded Burckhardt Compression a contract to overhaul the Process Gas and Hyper Compressors in its two LDPE lines in Dunkerque, France. A dedicated engineering team executed the turn-key solution project after only three months’ preparation time.

Based on its positive experiences working with Burckhardt Compression on other projects, Versalis entrusted Burckhardt Compression with this turn-key project. These major overhauls usually take place every 4-5 years in which a shutdown is required. Considering the project volume involved in overhauling two Booster/Primary and two Hyper/Secondary Compressors, the project timeline was ambitious. Burckhardt Compression operated as single-source supplier, providing all equipment and dealing with sub-suppliers. Versalis also attaches great importance to health and safety standards and protection of the environment and Burckhardt Compression performed all work to its utmost satisfaction in this regard.

The project scope included a major revamp of all compressors, inspections, replacement and refurbishment of parts, transportation logistics, and coordination of sub-suppliers. Relying on its extensive network, Burckhardt Compression was also able to quickly resolve unplanned events. A major benefit was Burckhardt Compression’s ability to make many decisions directly onsite. In addition to its very good performance of the overhaul, Burckhardt Compression’s well trained and qualified employees are capable of providing local parts and maintenance services, which ensures very short response and delivery times. The success of this project was supported by the close relationship between Versalis staff and Burckhardt Compression’s team.

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France's Suez to build waste-to-energy facility in Belgrade

France's Suez has said it signed an agreement to invest 300 million euro ($352.1 million) in the construction of a waste-to-energy facility in Belgrade in consortium with I - Environment Investments Limited, a subsidiary of Japan's Itochu.

The project will allow the Belgrade city government to close and remediate the Vinca landfill and generate over 80 MW of renewable heat and electricity, Suez said in a statement on Friday. 

The waste-to-energy facility will be built by a 50/50 joint-venture of Suez and Itochu and will have an installed power production capacity of 25 MW and heat production capacity of 56 MW, processing 340,000 tonnes of waste annually, the French company said.

In addition, a dedicated facility will process 200,000 tonnes of construction and demolition waste per year. A new waste disposal designed in accordance with European standards will dispose of residual waste pending the development of the recycling policy currently rolled out by city authorities, Suez noted.

Following completion of the construction, managed by French industrial engineering contractor and equipment manufacturer CNIM and Serbian civil engineering group Energoprojekt [BEL:ENHL], and planned in 2021, the facilities will be operated by Suez for a 25-year term under a Public-Private Partnership (PPP) agreement.

"The Belgrade Waste PPP is a landmark and pathfinder project for a region which has huge investment needs in infrastructure, in particular in the environment sector. We are convinced that Public-Private Partnerships are among the best solutions to combine technical, financial and contractual performance and we are proud that the City of Belgrade selected us to bring the model to this part of Europe," the senior executive vice-president of Suez, Marie-Ange Debon, said in the statement.

Belgrade city government said in July that a consortium of Suez and Itochu was the only bidder in a tender for a public-private partnership for the processing of urban waste in Vinca. The tender was organised with the support of International Finance Corporation (IFC).

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Gazprom Neft plans revamp of Omsk refinery coker

PJSC Gazprom Neft will invest more than 5.2 billion rubles on a project to upgrade and modernize the existing 767,000-tonne/year delayed coking unit (DCU) at its 21.4 million-tonne/year Omsk refinery in Western Siberia as part of its ongoing modernization program to reduce environmental impacts and improve processing capacities, conversion rates, energy efficiency, and production qualities at the site (OGJ Online, Dec. 9, 2013).

Alongside increasing overall DCU efficiency as well its ability to further process heavy oil residues, the overhaul project specifically will equip the coker with new technology to enable production of 38,700 tpy of raw needle coke, a highly structured, low-metal, low-sulfur carboniferous raw material used in the metallurgical, nuclear, chemical, and space industries, Gazprom Neft said.

The project—for which Gazprom Neft has selected JSC Giprogazoochistka, Moscow, to deliver engineering design—will include the following:

• Complete replacement of three aging coke drums with new bimetallic steel drums manufactured by JSC Volgograndneftemash, Volgograd, that will be equipped with a sliding (opening-closing) valve system.

• Construction of an additional storage facility for needle coke production.

• Installation of a new column for treatment of secondary raw materials.

• Construction of a new explosion-proof control room.

• Installation of automatic gas-analysis resources, fire safety equipment, and an automated steam-supply system.

The project also will reduce environmental impacts from operations at the site by 75% as a result of deeper treatment of coker gas, Gazprom Neft said.

Once completed, the revamped DCU will become Russia’s first plant capable of producing needle coke, which will be sent to a petroleum coke calcination facility for further processing into finished product for production of graphite electrodes.

The modernized DCU, however, will continue to produce anode coke alongside needle coke, according to the operator.

Gazprom Neft, which will begin installation of large-size equipment for the DCU revamp in 2018, did not disclose a definitive timeframe for when it will commission the modernized coker.

As part of its second-phase Omsk modernization works, the operator recently completed installation of major equipment for a new 2 million-tpy advanced oil refining complex (AORC) as well as began construction of a grassroots 2 million-tpy DCU at the site.

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KBR awarded engineering and project management services contract for Sonatrach, Statoil and BP joint project in Algeria

KBR, Inc. has been awarded an engineering and project management services contract by JVGAS – a joint venture of Sonatrach, Statoil and BP – for the provision of engineering, procurement and construction management services in Algeria. 

Under the terms of the contract KBR will provide detail design engineering, procurement services as well as construction management at the major gas developments at In Salah Gas and In Amenas. This work, which is expected to be performed over 48 months, will be a KBR collaboration with engineering and the procurement services being performed from the UK and Chennai offices in partnership with the local, in-country, engineering office.

"KBR is proud of its long history in Algeria where we have been working for over 45 years," said Jay Ibrahim, KBR President, EMEA "This project will demonstrate KBR's ability to utilize its global resources to provide the full spectrum of engineering project services on one of the largest projects in the country."

Revenue associated with this project will be booked into backlog of unfilled orders for KBR's Engineering & Construction Business as task orders are confirmed.

KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 34,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses.

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Egypt to Sign Final Deal For Russian Industrial Zone by End 2017

Egypt and Russia will sign the final deal for the construction of the Russian industrial zone in the Suez Canal area before the end of 2017, Amwal Al Ghad reports.

The announcement was made by Egypt’s Minister of Trade, Tarek Qabi, during his meeting with Russia’s Deputy Industry and Trade Minister, Georgy Kalamanov, on October 3.

The industrial zone agreement, signed between Cairo and Moscow in February 2016, was designed to offer favorable treatment and benefit Russian resident companies, such as carmakers, petrochemical enterprises, energy, and medical companies.

Tarek Qabi further commented that the zone will cover an area of 5 million square meters in the east of Port Said. Cost of construction reach as much as $190 million, while investments amount to $7 billion, he added.

Russian minister Georgy Kalamanov stated to the media in July that the agreement is expected to pave Russia’s way to the fast-growing African markets.

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Gazprom to launch expansion of Serbian gas storage facility in 2018

Serbia's government said on October 4, 2017, that it expects Russia's Gazprom to launch works for expansion of Banatski Dvor underground natural gas storage facility next year.

The technical design of the project will be prepared by the end of this year, Serbia's energy minister Aleksandar Antic said following a meeting with Gazprom president Alexey Miller in Moscow, according to a government press release.

In June, Gazprom signed a MoU with state-run gas distributor Srbijagas for the expansion of Banatski Dvor storage capacity to 750 million cubic metres from 450 million cubic metres.

Serbia's president Aleksandar Vucic said in July the country plans to increase the capacity of Banatski Dvor to 1 billion cubic metres in the long term.

Gazprom’s gas exports to Serbia rose by 31.7% on the year in the 1st 9 months of 2017, according to the press release.

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