Last updateTue, 02 Jan 2018 3am

KBR awarded FEED Contract for Petrokemya Butadiene Unit Expansion Project in Saudi Arabia

KBR has announced that it has been awarded a front-end engineering design (FEED) contract by Saudi Basic Industries Corporation (SABIC) for the debottlenecking and expansion of its Petrokemya Butadiene Extraction Plant in Al Jubail, Saudi Arabia.

Arabian Petrochemical Company (Petrokemya), a wholly-owned affiliate of SABIC, is one of the largest manufacturing sites in Al Jubail. The site has an installed capacity of approximately 5.15 million metric tons per year of petrochemicals including olefins, PVC/VCM, polystyrene and polyethylene plants in addition to utilities and steam generation.

The butadiene extraction plant was built in 1993 with a capacity of 123 kilotons per year. Petrokemya plans to significantly expand the capacity of the plant. This expansion is part of Petrokemya and SABIC’s vision and strategic business plan with a view of growing market demands in the downstream petrochemical market.

“KBR is delighted to further strengthen our more than 20-year relationship with SABIC and our commitment to the Kingdom of Saudi Arabia through this strategic project,” said Stuart Bradie, KBR’s President and Chief Executive Officer. “This contract award for the Petrokemya Butadiene Debottleneck Project demonstrates KBR’s world-class petrochemical execution and delivery capabilities within the Kingdom of Saudi Arabia.”

Yokogawa wins Control System Order for Rabigh 2 Combined Cycle Power Plant Saudi Arabia

Yokogawa Electric Corporation announces that its subsidiary, Yokogawa Electric Korea Co., Ltd., has won an order from Samsung C&T Corporation to supply control systems for the Rabigh 2 combined cycle power plant*, which is being built in Rabigh on Saudi Arabia's Red Sea coast.

This power plant will have three 700 MW combined cycle power units with gas turbines, giving it a total capacity of 2,100 MW. The plant is being built for Al Mourjan For Electricity Production Company, whose shareholders are the Saudi Electricity Company (50%) and a consortium (50%) consisting of Samsung C&T Corporation and ACWA Power International, an independent power producer. The plant is scheduled to start operation in June 2017.

For this project, Yokogawa will deliver a CENTUMR VP integrated production control system for the monitoring and operation of all plant facilities, including the gas turbines, exhaust-heat-recovery boilers, and steam turbines, and for the control of the exhaust-heat-recovery boilers. The company will be responsible for engineering, and will also provide support for installation, commissioning, and operator training. This system is scheduled to be delivered by the middle of next year.

The winning of this control system order can be attributed to Yokogawa's solid track record in providing control systems to the power industry, including over 100 systems for combined cycle power plants, and to the strong engineering capabilities of Yokogawa Electric Korea. An additional contributing factor was our excellent customer support network in Saudi Arabia.

Combined cycle power plants generate power more efficiently and emit fewer greenhouse gases than conventional thermal power plants that use only gas or steam turbines. Power utilities all over the world are planning to construct plants of this type at sites that have ready access to natural gas. Encouraged by its success in winning this order, Yokogawa plans to expand its control business in the power sector, including the combined cycle power plant segment.

Foster Wheeler awarded Contract for Heat Recovery Steam Generators in Saudi Arabia

Foster Wheeler AG has announced that a subsidiary of its Global Power Group has been awarded a contract by Al-Toukhi Company for the design and supply of four heat recovery steam generators (HRSGs). The units will be installed at Saudi Electricity Company’s (SEC) Hail Power Plant in the central region of the Kingdom of Saudi Arabia.

Foster Wheeler has received a full notice to proceed on this contract. The terms of the agreement were not disclosed and the contract value will be included in the company’s third-quarter 2014 bookings.

Foster Wheeler will design and supply the vertical design HRSGs and provide advisory services for erection and start-up of the units. The Hail 2 project includes the conversion to combined cycle of four existing Siemens SGT-2000 combustion turbines, firing Arabian light oil, by adding one steam turbine and four HRSGs. With this conversion the power output of the plant will be increased by 147 MW, without increasing the fuel consumption.

“Foster Wheeler is pleased to supply these HRSGs for SEC’s Hail 2 project featuring our improved state-of-the-art design for vertical HRSGs,” said Byron Roth, Chief Executive Officer of Foster Wheeler’s Environmental and Industrial Group. “With over 80 years of HRSG experience, we are confident our HRSG solutions best meet the project goals of our customers.”

Technip wins contract for new refinery units in the Kingdom of Bahrain

Technip has been awarded by The Bahrain Petroleum Company (BAPCO) a significant contract on a reimbursable basis to develop the Front-End Engineering Design (FEED) of the refinery located in the Kingdom of Bahrain.

The FEED contract covers four main work packages that include units aimed at processing the “bottom of the barrel” components to high value products, and all associated offsites and utilities to provide seamless integration with existing refinery facilities earmarked for retention post this major modernization.

The project aims at enhancing the refinery configuration, by increasing the throughput from 267,000 to 360,000 barrel per day as well as improving the product slate and profitability.

Technip’s operating center in Rome, Italy, in cooperation with Technip’s operating center in Abu Dhabi, United Arab Emirates, will execute the contract, scheduled to be completed at the end of 2015.

Saudi Aramco plans to invest $40B a year for the next decade

Reuters: Saudi Aramco, the world's biggest oil producer, plans to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production, Chief Executive Khalid Al-Falih said on Monday.

State-owned Aramco sees more capital going into offshore projects and expects rising costs across the oil sector to underpin oil prices, Al-Falih told a conference. Oil prices fell to a 14-month low of $101.07 last week as global demand growth weakens, even as production ramp ups in several places create a glut of oil.

"To meet forecast demand growth and offset (global output)decline, our industry will need to add close to 40 million barrels per day of new capacity in the next two decades," Al-Falih said.

"Although our investments will span the value chain, the bulk will be in upstream, and increasingly from offshore, with the aim of maintaining our maximum sustained oil production capacity at twelve million barrels per day, while also doubling our gas production."

Al-Falih said that the Organization of the Petroleum Exporting Countries or the International Energy Agency should not try to control oil prices but fundamental problems within the industry, like rising costs, increasing technical challenges and the falling size of finds would support the price.

"I share ... the belief that this is a market driven business, it's not OPEC, the IEA, and consumers that should be in the business of trying to control the market," Al-Falih said. "OPEC will take the price as it comes."

"To tap these increasingly expensive oil resources, oil prices will need to be healthy enough to attract needed investments ... (and) long-term prices will be underpinned by more expensive marginal barrels."