Monday, 28 November 2022

Maire Tecnimont awarded €80 Million EPCM refining contract in Greece

Maire Tecnimont S.p.A. announces that its subsidiary KT – Kinetics Technology S.p.A. has been awarded an EPCm (Engineering, Procurement & Construction Management) contract by Motor Oil Hellas (MOH) for a new C3 splitter unit to be implemented inside the Corinth Refinery, in Greece. MOH is a leading oil refining company in Greece and a key market player in Southern Europe and the Mediterranean region.

The contract value is equal to €80 million and relates to the execution of a new C3 splitter unit aimed at separating the mixture of propane and propylene coming from the existing fluid catalytic cracking unit in order to produce polymer grade propylene, one of the most important building blocks for the entire chemical industry.

The contract's scope of work includes full engineering activities and supply of all materials and equipment as well as construction supervision services, while construction activities will be carried out by subcontractors directly selected by the client, under KT-Kinetics Technology’s responsibility and management. The Corinth Refinery is among the most complex refineries of its kind in Europe and processes crude oil of various characteristics to produce a full range of high-end products.

Alessandro Bernini, Maire Tecnimont Group Chief Executive Officer, commented: “This important award represents a new significant step to strengthen the business relationship with a leading player such as MOH, thanks to our technological know-how and process expertise, which will ensure the best environmentally performing standards. We are glad to support the industrial development plans envisaged by MOH, as it is set to play an increasingly strategic role in the energy transition in the Mediterranean region”.

Saturday, 5 November 2022

Eni considers the possibility of building a third bio-refinery in Livorno

Eni met with the president of Tuscany, Eugenio Giani, and the mayors of Livorno, Luca Salvetti, and Collesalvetti, Adelio Antolini, to confirm that the company is investigating the opportunity to build a new bio-refinery at Eni's industrial site in Livorno.

The feasibility study involves building three new plants for the production of hydrogenated biofuel: a biogenic feedstock pre-treatment unit, a 500,000 tonne/year Ecofining™ plant and a plant for the production of hydrogen from methane gas.

The construction of the new bio-refinery – located in an industrial area which houses fuel and lubricant production facilities – would maximise synergies from the infrastructure already available and secure the site's future as an employment and production hub.

Giuseppe Ricci, Chief Operating Officer of Eni’s Energy Evolution said: “We are working to reach an important milestone in Eni's decarbonization strategy and the path we undertook many years ago, with the transformation of the first refinery in Venice into a bio-refinery back in 2014. The coexistence of bio and traditional plants has been successfully tested with the recent production of Eni Biojet in Livorno, the first SAF (Sustainable Aviation Fuel) exclusively from waste raw materials, animal fats and used vegetable oils thanks to the synergy with Eni's bio-refinery in Gela. Our goal is to increase the availability of decarbonized and sustainable products to our customers and to meet our scope 3 emission reduction targets.”

The president of Tuscany, Eugenio Giani, said: “I wish to express my deep appreciation for Eni's decision to investigate the conversion of the Livorno refinery into a bio-refinery, focusing on a sustainable energy transition both in terms of the environment and the outlet market. The technological innovation and size of the investment, as well as the plant synergies between new and previous production activities, open up a real pathway for development that maintains the current workforce and the entire production chain. These are forward-looking choices, compatible with the area in which these projects are located, and which will also benefit from the infrastructural competitiveness generated by the modernisation of the port of Livorno with the Europa dock”.

Livorno mayor Luca Salvetti said: “During these three years in office, the identification of clear industrial and employment prospects for the Eni refinery in Stagno has seen our constant commitment alongside institutions, trade unions and the company, with the goal of giving the plant a future and certainty to its workers.

I am very pleased to see how the efforts of all parties have led to the establishment of a virtuous path that we hope will lead to the construction of a new bio-refinery, a project that combines industrial goals, environmental compatibility and stability of employment. We have been actively involved in this process, and in March of this year we sat at the table called for by the Ministry of Economic Development alongside the company's top management, President Giani, and workers' representatives. That commitment is now beginning to bear fruit and the way forward is outlined.

Work is, and will always remain, at the heart of the goals of this administration, which is ready to provide a stable and collaborative institutional partner to all those involved on this front in the future”.

Collesalvetti mayor Adelio Antolini said: “The construction of a bio-refinery inside the Eni plant in Stagno – a proposal that I and mayor Luca Salvetti first put forward in a press conference in January 2021 as a suitable solution for our territory both in terms of maintaining skilled jobs and preserving the environment – is now becoming a reality. This study is already an achievement and a commitment to future development with Eni's investment at a high level of technical innovation. A good team effort by Eni and Tuscany with the municipalities of Livorno and Collesalvetti”.

Eni is the second-largest biofuel producer in Europe with 1.1 million tonnes/year and targets to increase the share to 2 million by 2025 and to 6 million in the next decade. Its bio-refineries in Venice and Gela transform waste raw materials, residues and waste resulting from the processing of vegetable products and oils from crops that do not compete with the food chain into high-quality biofuel – biodiesel, but also bio-LPG and bio-Naphtha, also for use in the chemical industry.

From 2023, Eni will no longer process palm oil and will make available pure hydrogenated biofuel containing a 100%-biogenic component, which can reduce GHG (GreenHouse Gas) Well to Wheel by up to 90%, i.e. along the entire logistics and production chain, up to its final use.

The design of the three new plants in Livorno will be completed by 2023 and construction could take place by 2025.

The transformation plan for the Livorno refinery will be discussed with local institutions and trade unions within the framework of a participatory and inclusive industrial relations model.

Monday, 31 October 2022

Critical Milestone achieved by Engineers India Limited (EIL) for a line of Credit (LoC) Mongol Refinery Project, Mongolia

Pursuant to the relevant provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and with reference to our letter dated 13th May, 2019, this is to inform you that Mongol Refinery (MR) Project achieved a critical milestone of executing EPC contract agreement for EPC-2 (Open Art units, Utilities & Offsites, Plant Buildings) and EPC-3 (Captive Power Plants) at Ulaanbaatar, the capital city of Mongolia. The LOA has been awarded to M/s Megha Engineering (MEIL) on 28th October 2022. 

Mongol Refinery having 1.5 MMTPA crude throughput is being set up in Mongolia with the Line of Credit fund by the Government of India. This project is also part of the Development Partnership Administration initiative of the Ministry of External Affairs (MEA), Govt. of India. 

Engineers India limited (EIL) is the Project Management Consultant (PMC) for this prestigious G2G collaboration project. EIL is committed to successfully execute this project of national importance that intends to catering the energy security for Mongolia. It is worth noting that Mongolia is presently importing its total fossil fuel consumption requirement such as Diesel, Gasoline, Jet fuel, LPG etc. from its neighboring countries. Construction of this refinery shall also open numerous job opportunities and cater to the development of industries in the vicinity aiding the Mongolia’s economic growth in the years to come.

Wednesday, 24 August 2022

L&T Wins (Large*) Contract from Indian Oil Corporation

The Hydrocarbon-Onshore division of L&T’s Energy Business has secured a large contract from Indian Oil Corporation (IOCL).

IOCL is implementing the Panipat Refinery Expansion (P-25) Project to enhance refining capacity from 15 MMTPA to 25 MMTPA to meet the growth in demand of petroleum products and to increase their profitability and competitiveness in the long run.

The engineering, procurement, construction, and commissioning (EPCC) contract is for setting up a Residue Hydrocracker Unit (RHCU) for this P-25 Project. The RHCU is licensed by Axens (France) with a capacity of 2.5 MMTPA and will upgrade the Vacuum Residue (VR) to high-value commercial products (mainly diesel). The contract is awarded through international competitive bidding on a Lump Sum Turnkey (LSTK) basis.

L&T earlier bagged a significant EPCC Contract for setting up DHDT Unit (5.0 MMTPA, licensed by Shell) under the same P-25 Project of IOCL at Panipat-Refinery.

Commenting on the win, Mr. Subramanian Sarma, Whole-time Director & Sr. Executive Vice President (Energy) said, “We are very delighted to be part of this large expansion project of IOCL-Panipat. I would like to thank IOCL for having trust in our capabilities. We are fully committed to delivering the complex process units with high standards of HSE and Quality.”

The Hydrocarbon business of L&T Energy organized under Offshore, Onshore, Construction Services, Modular Fabrication and Advanced Value Engineering & Technology (AdVENT) verticals, offers integrated design-to-build solutions to domestic and international customers. With over three decades of rich experience, the business has been setting global benchmarks in all aspects of project management, corporate governance, quality, HSE and operational excellence.

Monday, 15 August 2022

Construction starts at refinery modernisation project in Lithuania

A ‘ground-breaking’ ceremony in Lithuania officially marked the beginning of the construction of the new Residue Conversion Unit at PC ORLEN Lietuva’s Ma┼żeikiai Refinery, the only crude oil refinery in the Baltic States.

PC ORLEN Lietuva awarded Petrofac the contract, worth around EUR550 million (approx. US$640 million), in October 2021. The progamme involves the modernisation and expansion of the existing refinery complex and environmental upgrades. The project plays a significant role in the economy and energy security of the region and is also the biggest Polish capital investment in Lithuania.

Government officials and representatives of local authorities joined leadership from Petrofac and PC ORLEN Lietuva on site.

Guest of honour, Dainius Kreivys, Minister of Energy of the Republic of Lithuania, said:
"Poland is an important strategic partner for us in the energy sector, and ORLEN Lietuva business in Lithuania stands as an example of such successful partnerships. The refinery ensures a stable supply of petroleum products to the entire Baltic region and stands among the most important industries for our energy security. Therefore current investments of ORLEN are meaningful and important to Lithuania because this contributes to the competitiveness of the Lithuanian economy and energy security."

Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division said:
“The ground-breaking is a key milestone in the modernisation, environmental upgrade and expansion programme at the Ma┼żeikiai Refinery. Our focus remains on safe, assured and timely delivery as we move forward in the construction phase of the new Residue Conversion Unit. We’re proud to be supporting ORLEN in transforming existing facilities to produce higher quality, more environmentally friendly fuels for a better future.”

Michal Rudnicki, General Director of PC ORLEN Lietuva, said:
“In the context of ambitious energy transformation goals to be pursued by the world in the upcoming decades, the ambition of this refinery is to become the leader of a fair and sustainable energy transition in Central Europe. We completely understand that ambitious goals can be achieved only in close cooperation with our partners and all stakeholders. Our strategy and pursuit of the upcoming decade is the sustainable utilisation of resources.”

Tuesday, 9 August 2022

BP to sell interest in bp-Husky Toledo Refinery to Cenovus

BP has reached an agreement to sell its 50% interest in the bp-Husky Toledo Refinery in Ohio to Calgary-based Cenovus, its joint venture partner in the facility.

Under the terms of the deal, Cenovus will pay $300 million for bp’s stake in the refinery, plus the value of inventory, and take over operations when the transaction closes, which is expected to occur later in 2022. bp and Cenovus will also enter into a multi-year product supply agreement.

The bp-operated refinery, which can process up to 160,000 barrels of crude oil per day, has been an important part of the region’s economy for more than 100 years, supporting jobs and safely supplying gasoline, diesel and other essential fuels and products.

“We are proud of the business we have built in Toledo, which has provided thousands of good-paying jobs and made significant contributions to Ohio’s economy and America’s energy security for decades. As our partner in Ohio, Cenovus is ideally placed to take this important business into the future.”

Dave Lawler, chairman and president, bp America

Today’s announcement follows another recent deal with Cenovus that, taken together, will help res
hape bp’s North American oil and gas portfolio for long-term profitable growth.

In June, bp entered into an agreement to sell its interest in the Sunrise oil sands project in Alberta, Canada, to Cenovus and agreed to acquire Cenovus’s interest in the Bay du Nord project offshore Newfoundland and Labrador. Following the close of that deal, also expected in 2022, bp will no longer have interests in oil sands production and will shift its focus to future potential offshore growth in Canada.

In the US, after divesting its stake in the bp-Husky Toledo Refinery, bp’s refining portfolio will reduce from three to two facilities. Going forward, bp will focus investment on its Whiting refinery in Indiana and Cherry Point refinery in Washington, which are strategically positioned to serve customers in the Midwest and Pacific Northwest.

"I am incredibly proud of the people who safely operate this refinery every day. Their unwavering dedication and expertise have helped provide a strong foundation for the future of this facility, which will continue to provide jobs in this community and energy for this region for years to come," said Des Gillen, vice president, bp-Husky Toledo Refinery.

Notes to editors

More than 580 bp refinery employees are expected to become Cenovus employees at closing later this year. The bp-Husky Toledo Refinery can process up to 160,000 barrels of crude oil each day, providing the Midwest with gasoline, diesel, jet fuel, propane, asphalt, and other products.In 2008, bp formed a joint venture (JV) when Husky Energy Inc. acquired a 50% stake in bp’s Toledo refinery. In a separate JV, bp bought a 50% share of the Husky-operated Sunrise oil sands field project in Alberta. On January 1, 2021, Cenovus combined with Husky in an all-stock transaction.bp currently operates seven refineries globally and has the net capacity to refine 0.8 million barrels/day in the US and 1.6 million barrels/day around the world.

Friday, 1 July 2022

Wood to strengthen energy security through PRL Refinery Expansion and Upgrade Project

Wood has secured a new multi-million-dollar front-end engineering design (FEED) contract by Pakistan Refinery Limited (PRL) for its planned Refinery Expansion and Upgrade Project (REUP) in Karachi.

PRL’s refinery, situated on the coastal belt of Karachi, is designed to process various imported and local crude oil. It is one of the principal manufacturers and suppliers of petroleum products to domestic markets.

As part of the REUP project, PRL aims to increase its crude processing capacity to 100,000 bpd by adding an additional 50,000 bpd crude unit and associated processing facility to its existing refinery. The project seeks to upgrade the hydroskimming refinery to a deep conversion facility which will significantly reduce the production of high sulphur fuel oil (HSFO) and produce environmentally friendly Euro-V compliant premium products such as High-Speed Diesel (HSD) and Motor Spirit (MS/Petrol). The upgraded complex will also produce propylene, a valuable feedstock for petrochemicals.

Having completed the early study and Pre-FEED work in 2021, this new award extends Wood’s involvement in PRL’s REUP project. ”We are delighted to have secured this new contract with PRL which demonstrates the strength of our decades long relationship with the client and their confidence in our extensive refining expertise” said Giuseppe Zuccaro, President of Process & Chemicals at Wood. “The REUP project plays an important role in Pakistan’s energy landscape and is a significant addition to Wood’s Process & Chemicals portfolio. We are committed to delivering a world-class FEED, and ready to support PRL in the subsequent phases of this strategic investment.”

The strategic project, with a total installed cost of over $1 billion dollars, serves a critical role in meeting the increasing energy needs of Pakistan's domestic market. The FEED component of the project, which is expected to be completed in August 2023, is being led by Wood’s Reading office in the UK with specialist support from its Salt Lake City office in the US.