Petrofac To Build Gas Receiving Terminal In Turkey
Petrofac has been awarded an Engineering, Procurement and Construction (EPC) contract, valued at approximately 340 million euros, with South Stream Transport B.V., a wholly owned subsidiary of GAZPROM, for the development of onshore pipelines and a gas receiving terminal near Kıyıköy in Turkey.
Through its EPCm business, Petrofac has been undertaking early works since April, which includes FEED verification, detailed design and procurement for the project which is associated with the offshore section of the TurkStream Gas Pipeline.
Under the contract, Petrofac will provide engineering, procurement and construction for the receiving terminal, which will be ready for commercial operations in December 2019. When completed, the facility will receive 31.5 billion cubic metres of gas annually from the TurkStream pipeline originating from the compressor station in Anapa, Russia.
Commenting on the award, Roberto Bertocco, Managing Director, EPCm for Petrofac Engineering and Production Services said: "We're delighted to be working with South Stream Transport to help open up a vital gas export channel to Turkey and Southeast Europe.
"We have been working collaboratively and successfully with our client's team for the past five months to establish the project. We now look forward to progressing to the next phase where our focus is on achieving safe and effective delivery in line with South Stream Transport's goals and expectations."
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Petrofac Awarded Contract On Sakhalin Island
Petrofac has been awarded a contract worth more than US$700 million by Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) for its onshore processing facility (OPF) on Sakhalin Island. The project comprises a lump-sum engineering, procurement and offshore fabrication component, as well as a reimbursable element for construction and site services.
The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings, a temporary beach landing facility, refurbishment of the existing camp, temporary site facilities for Sakhalin Energy and Petrofac, as well as brownfield tie-ins to the existing OPF. With early engineering work already underway, the project will support Sakhalin Energy in maintaining its sustainable LNG capacity.
Sunder Kalyanam, Group Managing Director for Petrofac’s Engineering & Construction Growth business said: “We have been executing projects in Russia since the 1990s and this marks our tenth in the country. Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre (STTC), established in 2008, has been helping meet increased local demand for competent personnel specialising in the oil and gas industry. From STTC we are able to supply a wide range of technical support services including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance as well as technical manpower support. We look forward to working with Sakhalin Energy to deliver this strategically important project.”
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Petronet to develop Sri Lankan LNG terminal
A joint venture of Petronet LNG Ltd. along with Japanese and Sri Lankan companies will develop an LNG terminal in Sri Lanka to supply the island nation’s power, manufacturing, and transport segments. The terminal’s capacity is still being determined. Petronet expects construction to take 2 years after all formal agreements have been signed.
The proposed terminal site is on Sri Lanka’s west coast near the capital city of Colombo. Most of the country’s power is currently generated by burning liquid fuels, with 82% of total primary energy consumption met by petroleum products and biomass.
The Sri Lankan and Indian governments on Sept. 1 signed a letter of intent regarding the project.
Infrastructure expansion will boost oil rig traffic
South African ports are projected to receive an injection of almost R44.4-billion over the coming five years from State-owned logistics operator Transnet, which will increase the number of oil rigs docking for maintenance and repairs in South Africa, says defence and security solutions supplier Saab Grintek Defence sub-Saharan Africa maritime marketing executive Hein van den Ende.
Although the development of South African ports will bring with it enormous opportunity and a much-needed boost to the economy, he warns that the protection of these assets will present a unique challenge that needs to be managed carefully.
“This investment is expected to push cargo capacity at the country’s nine major ports up from 255-million tonnes a year to 314-million tonnes a year by 2022 and 543-million tonnes a year by 2046, with a particular emphasis on containerised and liquid bulk cargo.”
Egypt to Invest $6.8B in Petrochemical Project
The Egyptian Ministry of Petroleum and Mineral Resources will invest $6.8 billion in an integrated production complex for petrochemicals, the Minister of Petroleum, Tarek El Molla, stated, according to Amwal Al Ghad.
The funds will be disbursed over a period of up to five years.
The complex will use around four million tons of Naphtha to produce 2.7 million tons of petrochemical products, such as p-xylene, gasoline, styrene, polypropylene, polyethylene, and ammonia, El Molla noted.
Production from the facilities will more than cover local market demand for petrochemical products and the raw materials necessary for petrochemical projects, El Molla said, projecting that the surplus could be exported.
The complex will cover over three million square meters and will be located close to the Ain El Sokhna Port.
Rosneft, Chinese CEFC Ink Strategic Deal
Russia’s largest state oil major, Rosneft, along with CEFC China Energy Company, sealed a strategic cooperation deal for the joint development of oil and gas projects in Siberia at this year’s BRICS summit, the Russian company said in a press release.
In addition to joint upstream project development, the deal covers cooperation in other segments of the industry, including oil refining, petrochemicals production, and crude oil and oil product trade. No details about the value of the deal were disclosed.
CEFC China Energy is the largest private energy business in China and has been investing heavily both at home and abroad, including projects in Central Asia, Eastern Europe, and the Middle East. At home, the company has been buying and building oil storage capacity. CEFC has even been entrusted with storing part of China’s strategic petroleum reserve.
Besides its energy business, CEFC is also active in financial services and online insurance.
Earlier this month, Reuters said in an exclusive report that the Chinese company was in early talks to acquire a stake in Rosneft. Three sources close to the talks said these were preliminary, and it was unclear whether CEFC would buy existing stock or newly issued shares in the state giant.
Essar Oil to invest $250 mn to expand refining capacity in UK
Essar Oil (UK) Ltd, which owns and operates UK's Stanlow Refinery, today said it will invest $250 million in expanding the refining capacity and is targeting 400 petrol pumps in Britain in 5-years.
Essar Oil (UK) Ltd, which owns and operates UK’s Stanlow Refinery, today said it will invest $250 million in expanding the refining capacity and is targeting 400 petrol pumps in Britain in 5-years. The investment in revamp of certain units of the refinery would help cut down on crude oil processing cost, improve product slate and lead to marginal increase in capacity, chief executive S Thangapandian said. Refinery capacity would increase from 9.09 million tonnes per annum to 9.7 million tonnes by March 2018, he said. Chief Financial Officer P Sampath said the revamp would add $1 to refining margin, translating into $70-75 million revenue. “The project will deliver enhanced yields of high value products, reduce crude costs and drive revenue growth,” Thangapandian said.