We have taken a look at the top Refining projects that will have a significant impact on the industry in 2018. In making the selection the SupplHi Market Analyst team has picked the projects that are either currently under development or have been recently awarded. In addition, we’ve picked projects based on location (growing and developing geographies) and size (large projects with significant CAPEX).
The project in Tangshan, Hebei province, was initially supposed to be developed by state-owned giant Sinopec, but in September 2017 China’s National Development and Reform Commission (NDRC) granted Risun Coal Chemicals approval to carry out the development. The refinery is expected to be completed in 2020 and will have a capacity to process 260,000 Bpd of crude. Production will consist of 810,000 tonnes per year of gasoline, 2.5 MTPA of jet fuel and 3,37 MTPA of diesel. It is unclear which contractors are interested in bidding for the project, but it is likely that in the end Chinese ones, such as Sinopec Engineering and Wison, will be selected.
Hassi Messaoud Refinery – Algeria – $2.5 Billion – by Sonatrach
State-owned Sonatrach has delayed the project several times already, however it launched the tendering phase in November 2017 by inviting companies to bid for the $2.5 Billion work. The scope of work includes facilities for atmospheric distillation, Liquefied Petroleum Gas separation, hydrocrackers, desulphurisation, bitumen production, utilities, blending, effluents treatment, control room and laboratories. The refinery is expected to be completed in 2020 and have a production of 5 MTPA of oil products. Companies interested in the project are not yet known, however, firms like Amec Foster Wheeler, KBR, TechnipFMC and China Petroleum engineering and Construction (CPECC) that have been and are involved in similar projects in the country with Sonatrach could be among the likely contenders.
Dung Quat Refinery Expansion – Vietnam – $1.8 Billion – by PetroVietnam
The project aims at increasing capacity at Vietnam’s first refinery by 2 MTPA whilst also improving the quality of its products to comply with Euro-V standards. The development, expected to be operational in 2021, includes the construction of new Diesel hydrotreater unit, Gasoline hydrotreater unit, Naphtha hydrotreater unit, Alkylation unit, Solvent deasphalting unit, Sulfur removal unit and Hydrogen unit. Names have yet to surface in the EPC race, but JGC and TechnipFMC are the two main international contractors who have already taken part in similar work in Vietnam. The project might face some delays due to a lack of capital.
Zarqa Refinery Expansion – Jordan – $1.6 Billion – by Jordan Petroleum Refinery Company (JPRC)
JPRC, the only refiner in Jordan, is planning to expand its 100,000 Bpd refinery in Zarqa, 35 kilometres east of Amman, to 220,000 Bpd and to upgrade the quality of its production to meet Euro-V specifications. The project made significant steps over 2017 with the award of two crucial contracts to Honeywell UOP and KBR. The agreement with Honeywell UOP covers managing licensor services, technology licensing, FEED services and basic engineering design as well as technology licensing for crude and vacuum distillation units. KBR will instead provide basic engineering for a residue hydroprocessing unit. No rumours have emerged regarding possible bidders for an EPC contract, however companies with an expertise in the refining sector in the region include TechnipFMC, Tecnicas Reunidas, Samsung Engineeringand GS E&C.
Ruwais Refinery Development – U.A.E. – $400 Million – by Abu Dhabi Oil Refining Company (TAKREER)
State-owned TAKREER is planning further work at its Ruwais Refinery this year. It has set aside a $140 Million budget for a new Sulphur recovery unit and a LPG recovery unit to be completed in 2022 and $260 Million for a Waste Heat Recovery Unit that should be operational in 2020. Nothing is yet known as to contractors vying to participate in the project, but refining EPC contractors with expertise in the region, such as TechnipFMC, Tecnicas Reunidas, Samsung Engineering and GS E&C, and technology leaders like Honeywell UOP and KBR will probably show interest.
This analysis of top Refining projects is an extract from SupplHi’s Market Compass tool, which tracks the Oil&Gas market, allowing users to follow clients, projects and anticipate trends.
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