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.

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.

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 Mažeikiai 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 Mažeikiai 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.”

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 reshape 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.

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.

New award for Diesel Hydrotreating and Hydrogen Recovery Unit by consortium with a Brazilian Affiliate Company

Toyo Engineering Corporation (TOYO, President Haruo Nagamatsu), together with its Brazilian affiliate TOYO-SETAL Empreendimentos Ltda. (TSE*1), has been awarded a contract by Petróleo Brasileiro S.A. (PETROBRAS, Head Office: Rio de Janeiro) for the construction of a new Diesel Oil Hydrotreating Unit and Hydrogen Recovery Unit at the Replan Refinery*2 (REPLAN).
As part of PETROBRAS' 2022-2026 strategic plan, this project will boost production of S-10 diesel*3 (ultra-low sulfur diesel) by 63,000 bpd and all diesel produced at the refinery will be low sulfur. The consortium of TOYO and TSE will undertake the entire EPC work from detailed engineering, procurement of equipment and materials, construction work, and commissioning, with completion scheduled for 2025.

PETROBRAS plans to invest US$ 6.1 billion over the next five years to increase capacity at existing refineries and reduce greenhouse gas emissions. Starting with this project, TOYO is aiming to win more awards for future projects and contribute to the creation of an environmentally friendly society.

*1 TSE: A wholly owned subsidiary of TS Participações S.A. (TSPI), a Brazilian corporation established in May 2012 by TOYO and SOG - Oleo e Gas (SOG), a major Brazilian engineering company, each with a 50% of shares. TSE is an operating company that mainly performs EPC for onshore facilities, and TSPI is an equity method affiliate of TOYO.
*2 Replan Refinery: The largest refinery in Brazil, established in May 1972. Processing capacity is 434,000 bpd.
*3 S-10 diesel: Diesel oil with low environmental impact in which the sulfur content of diesel oil is reduced to less than 10 ppm through desulfurization treatment. It has been introduced in Brazil since 2013.

Linde Engineering to Extend Slovnaft’s Polypropylene Capacity in Slovakia

Linde Engineering today announced it has been selected by Slovnaft, a member of the MOL Group, a leading integrated Central Eastern European oil and gas corporation, to conduct a complex large-scale revamp of a polypropylene (PP3) plant in Bratislava, Slovakia.

The revamp will extend the plant’s capacity by 18 percent to 300 kilotons of polypropylene per year, and the storage facility will be expanded from the current 45 to 61 silos in total. The revamped plant has been designed to offer a higher degree of operational flexibility by producing multiple product grades and utilizing intermediate storage to ensure just-in-time production. Furthermore, the project will incorporate environmental measures to capture waste gas streams in compliance with local regulations.

“The revamp will enable Slovnaft to meet rising demands from the polyolefin processing industry. The project is challenging given its complexity: Interdependency with other process facilities allows only a narrow time frame for a shutdown. With our proven expertise and best-in-class services, we will be able to complete all installation works, including construction, commissioning and testing,” said Juergen Nowicki, CEO Linde Engineering.

Several studies performed by Linde Engineering between 2016 and 2020 laid the foundation for Slovnaft’s investment decision. “One of the goals of our updated 2030+ strategy is to reduce the production of fossil fuels and strengthen the production of basic plastics. Linde Engineering is our reliable partner. Less than 20 years ago, the company built the PP3 polypropylene production unit in Slovnaft and now it will renovate and modernize it,” said Gabriel Szabó, Executive Vice President of Downstream at MOL Group.