ERC’s $3.7B Refinery to Come Online Next September
Operations at the Egyptian Refining Company’s (ERC) new refinery will begin next September, the Chairman of ERC, Ahmed Heikal, said, according to Bloomberg.
Construction at the site should be finished in June, he said, allowing operations to begin in September. Heikal added that the plant should be operating at 98% of its capacity by the end of 2018.
The refining facility was originally set to begin operations in the second quarter of 2018, but has experienced several delays, Bloomberg reports.
The plant has a projected production capacity of up to 4.2 million tons of liquid oil products, sufficient to meet approximately 14% of Egypt’s domestic demand, according to Heikal. In addition to butane and naphtha, the plant will have the capacity to process 522,000 tons of gasoline, 600,000 tons of jet fuel, and 2.3 million tons of diesel.
ERC has contracted to sell the refinery’s output to the Egyptian General Petroleum Corporation (EGPC). The liquid oil products will be sold at a 1% discount to international prices, Heikal told Bloomberg. It is expected to save the government approximately $300 million per year.
The project is a $3.7 billion public-private venture. Qalaa Holdings holds a 19% stake in the plant. It has received approximately $2.35 billion in foreign financing, according to Bloomberg.
EGPC is a partial-stakeholder in ERC, owning approximately 24% of the company, the news agency reports.
Saipem awarded new Onshore E&C contracts in Saudi Arabia and Mexico and additional works of existing contracts in Saudi Arabia and Kazakhstan for a total value of approximately 1 billion USD
Saipem has been awarded a new contract in Onshore E&C. Activities involve engineering, procurement, construction and commissioning for the “Hawiyah Gas Plant (HGP) Expansion Project” located in the south-east of the Arabian Peninsula, which is part of the development plans to meet the country’s energy needs.
The contract was awarded by Saudi Arabian Oil Company (SAUDI ARAMCO).
The scope of work includes, among the main activities, the construction of two natural gas treatment units, gas dispatch units and associated utility systems.
The other contracts involve engineering, procurement, construction and commissioning and the start up of a unit for the “General Lazaro Cardenas” refinery in Minatitlan, in eastern Mexico, of five units of the “Francesco I” refinery located in Madero and a unit of the "Miguel Hidalgo" refinery located in Tula de Hallende.
The contracts were awarded by Pemex Transformación Industrial, a subsidiary of the national oil company Petroleos Mexicanos (PEMEX).
Saipem was also awarded additional works regarding previously acquired projects in the Onshore E&C sector in Saudi Arabia and Kazakhstan.
The total value of these new awards is approximately 1 billion USD.
Kvaerner awarded construction contract for Yme support structure
Kvaerner has been awarded a contract with Repsol Norge AS for the construction of a permanent caisson support structure for the Yme new development project.
The Yme was under development by Talisman for a number of years but ended up being an ill-fated affair.
However Spanish firm Repsol hopes to learn from the mistakes of its predecessor with a new development in the Norwegian field.
The contract with Kvaerner, with a value of around NOK 70 million, is a construction contract.
Kvaerner’s scope includes procurement of materials and construction of the Yme support structure which is 38 metres tall and weighs 1,300 tonnes.
Planning, procurement and method work will start immediately, while the fabrication in Verdal starts in January 2018.
Delivery of the Caisson Permanent Support is planned for June 2018.
Constructing the support structure will engage around 60-70 people at Kvaerner’s yard in Verdal in the building period.
“For the yard in Verdal this is an important contract, which in terms of capacity fits well with the construction of the drilling and process platform jackets for Johan Sverdrup and the four blisters for Njord, which will be delivered next year”, says Sturla Magnus, executive vice president in Kvaerner responsible for structural solutions and the yard in Verdal
Ministry to Launch Operation Tender for Power Plants
The Egyptian Electricity Holding Company (EEHC) plans to launch a limited tender in December for the maintenance and operation of the new power plants being constructed by Siemens, Daily News Egypt reports.
The power plants are located in the New Administrative Capital, Beni Suef, and El Brulus.
Four companies submitted offers earlier this year. In order to determine the best offer, EEHC decided to offer a limited tender for the four companies, sources at the Ministry of Electricity and Renewable Energy stated.
The companies are: the Orascom-ADERA Energy consortium, Siemens, the Elsewedy-EDF consortium, and Steiaj.
EEHC has formed a committee that aims to study the offers submitted by the four firms within 20-30 days. The ministry plans to sign the contract with the winning firm in early 2018.
The three power plants are projected to add 14,400 megawatts (MW) to the national electricity grid by May 2018.