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NEWSSPRING 2010
Teamwork ... deliveringsuccess around the world
Chevron Oronite“The right results...the right way”14
18 A challenging turnaroundCreativity delivers the solution
52 ONGC C2-C3, IndiaKey role in innovative facility
24 ‘The Big Pour’BP Whiting Refinery Modernisation
36 The hydrogen challengeOur Terrace WallTM solution has the answer
2 FW NEWS
Managing EditorsCarolyn GreenhalghDirector, Strategic Planning &Marketing, Global E&C GroupT +44 (0)118 913 2494E [email protected]
Anne ChongManager, Public RelationsFoster Wheeler Energy LimitedT +44 (0)118 913 2106E [email protected]
Jackie HogartySenior Marketing ConsultantGlobal E&C GroupT +44 (0)118 913 2167E [email protected]
Dominic HaleCreative ManagerFoster Wheeler Energy LimitedT +44 (0)118 913 2329E [email protected]
Published by Foster WheelerShinfield ParkReadingBerkshire RG2 9FWUKwww.fwc.com
© 2010 Foster Wheeler
Produced by MMCS
UPSTREAM OIL & GAS
LNG & MIDSTREAM
REFINING
CHEMICALS & PETROCHEMICALS
PHARMACEUTICALS, BIOTECHNOLOGY& HEALTHCARE
POWER
Contents8 A key win
Singapore’s first LNG terminal
10 100 million safe hoursSHARQ 3rd Expansion Project, Saudi Arabia
12 New Saudi JVFoster Wheeler/SOFCON vision for the future
13 SABIC UK alliance extensionA strong vote of confidence
16 Leading carbon capture expertise
17 Going greener - Bioethanol blending at Shell UK
20 ADCO - another upstream success
21 Showcasing our subsea skillsFoster Wheeler Upstream on the march
26 Reficar Cartagena Refinery ExpansionMaking great progress
32 Sword of HonourA proud safety achievement
33 Biopharma win in HungaryDeveloping a partnership with our client
34 Finding the right siteHelping our clients around the world
38 Strong performance earns new awardNghi Son Refinery, Vietnam
39 Uganda’s first oil refineryRealising the vision
40 Thailand Focus - latest successes
42 PolymerLatex, MalaysiaState-of-the-art facility
44 Ground-breaking CTL in China
46 Mari El & Khabarovsk refineriesMajor wins in Russian Federation
48 Pluto LNG, AustraliaProgress & preservation
50 World’s largest 100% biomass boilerGround-breaking win, Poland
51 Coal & biomassPlanned Polish demo plant
54 ERTC Berlin
Welcome to FW NewsFoster Wheeler Global E&CGroup’s news, successes &people around the world.
3FW NEWS
22 Canaport LNG terminal, CanadaFirst LNG shipment
4 Major successes in South AfricaPlaying a key role in Sasol’s plans for Sasolburg & Secunda
28 A technology ‘flagship’in SingaporeOfficial opening of Shell’s MEG plant
Image: Copyright of Canaport LNG Limited.
Image: Courtesy of Shell Eastern Petroleum (Pte) Ltd.
Willem Louw (left), MD, Sasol Technology, and Stephen Culshaw, Chairman, FWSA, signing the Fischer-Tropsch Wax Expansion Project EPCm contract.
4 FW NEWS
“The award of this contract builds upon the relationship Foster Wheeler has
developed with Sasol on this and other projects in South Africa and internationally.
In the last two years our South African operation has grown significantly through
a targeted capacity-building programme. This enables us to provide local, full-service
project delivery to Sasol on this major investment. With our detailed understanding
of the project and our proven track record of managing and safely executing
the EPC phases of complex projects, we are confident in our ability
to deliver this project successfully and safely for Sasol.”
Steve ScottMD, Foster Wheeler South Africa
5FW NEWS
Sasol Wax Expansion Project
Our South African operation has been awarded a major EPCm contractby Sasol for its Fischer-Tropsch Wax Expansion Project at Sasolburg,South Africa. The project is expected to double Fischer-Tropsch hardwax production capacity at the site on completion in 2014.
We started work on the FEED phase in mid-2008 and since October2009 have been progressing early EPCm activities.
The project will be implemented in two phases andcompleted in 2014. It involves more than one millionFoster Wheeler manhours, and is being managedfrom our Johannesburg office with engineering ofelements of the scope being undertaken in ourSingapore office.
We are designing and erecting facilities adapted tothe confined plot spaces within the Sasolburg Onesite. For example, modular piperack design andprefabrication offsite will reduce manhours expendedwithin the operational area.
With a mixture of process buildings, open structures,greenfield and brownfield construction areas and tie-ins to the existing plant, the project executionstrategy requires a very broad and varied skill set.
There is a high level of communication with theexisting plant team to ensure ongoing operationsremain unaffected during the course of construction.
As well as quality, cost and schedule targets, weare working with Sasol to deliver a world-class HSEperformance, and the development of employmentopportunities for the local community.
Completion of the first phase of the project isscheduled for 2012.
S o u t h A f r i c a
EPCm winmajor
Growth Programmesasol Secunda
Our South African operation has been working onSasol’s Secunda Growth Programme since November 2007.
The programme comprises a number of projects toenable Sasol Synfuels to grow its fuel-producing capacity
by importing additional natural gas and increasingthe plant's capacity to process greater quantities of
feedstock for various products.
S o u t h A f r i c a
Foster Wheeler’s role is related to the offsites and utilities, where we have worked onpre-feasibility studies, conceptual engineering and basic engineering.
Our current focus is on the EPCm phase of three projects: cooling towers, a 132kV substationfor the 16th oxygen train, and 4th train landlord - polished water plant. Field work isproceeding well on all three projects, with the objective of being ready for commissioningduring the third quarter of 2010.
Recently, a milestone was reached when the main 132kV, 100MVA transformer for thesubstation was safely placed on to its foundation. The transformer, weighing some 90 tonnes,was lifted using an American 11320 Skyhorse crane rigged with a 58 metre-long boom. Due tosite space restrictions the load was lifted from its heavy-duty road trailer, which was positioned21 metres from the foundation, through the 7.5 metre-high roof of the transformer bay.
In January 2010 we celebrated the significant milestone of having worked one millionmanhours without a lost-time injury with a braai (barbecue) attended by nearly 400 people.Sasol awarded us a “Moment of Greatness” for the milestone, stating that “this achievementis proof of your commitment to working safely and sets a high standard for safety in theprojects and construction environment.”
Work is proceeding apace towards the next big milestone: completion of the large concretestructure of the cooling towers in June 2010.
Eon’s quick thinking saves a life!Our commitment to health and safety sometimes shows up in unlikely situations. A workeron one of our Secunda sites was stung by a bee, to which he is allergic. Eon Oosthuizen,our safety officer and a trained paramedic, reacted immediately and took him to theSecunda Medical Centre. On the way the patient went into anaphylactic shock which wassuccessfully treated by Sasol’s medical team. Eon’s rapid response in taking the patient tothe centre undoubtedly saved his life.
Left to right: Keith Brill, SGP project director; Eon Oosthuizen, safety officer; Carlos Domingues, construction manager;Tony Banks, construction & commissioning HSE operations manager, all FW.
7FW NEWS
Image: Courtesy of Sasol
“Foster Wheeler is a worldwideengineering company and has anexcellent reputation in the energy
sector. We are combining thestrengths of SLNG and
Foster Wheeler to take onthe complex task of managing
the EPC contract throughto completion.
Neil McGregor (below)Executive Director, SLNG terminal
LNGSingapore’s
first
8 FW NEWS
We have been awarded a contract to provide project management consultancyservices for Singapore’s first LNG terminal, to be located on the southwesternpart of Jurong Island.
Singapore LNG Corporation Pte Ltd (SLNG), established by the Energy Market Authority of Singapore,owns and oversees the development of this important project. The terminal, which will have an initialcapacity of 3.5 million tonnes per annum (mtpa), with provision for expansion to 6 mtpa, is targetedto be ready for start-up in 2013.
SLNG and Foster Wheeler will jointly manage the EPC contractor through an integrated projectmanagement team approach, which will allow SLNG to be fully involved in the management ofthe design and construction activities.
“We are delighted to have been selectedas project management consultant forthis prestigious project. Singapore’s firstLNG terminal is of major importance asit will help ensure the security ofSingapore’s energy future. We lookforward to working with SLNG, drawingupon our extensive project experience inSingapore and our considerable globaltechnical expertise in LNG.” Franco Anselmi (left)CEO, Foster Wheeler Asia Pacific
Celebratinga key win
9FW NEWS
10 FW NEWS
Common goalsThe handover to the client ended a challengingcommissioning and completion phase of the project whichsaw co-operation between interfacing teams representingthe new ethylene, ethylene glycol and polyethylene units aswell as the existing SHARQ, Aramco and Royal Commissionoperating plant and infrastructure. Undoubtedly teamworkand a common goal focus proved to be the key to successfulcompletion of this vast new development.
The U&O ProjectOur work on the U&O facilities used some 100,000 cubicmetres of concrete (including the cooling tower andbuildings), 18,000 tons of structural steelwork, 338kmof pipework, and 1,200km of cabling.
The final activity undertaken on the U&O project was thedisinvestment of the 120m high flare stack. This demanded
The SHARQ 3rd ExpansionProject in Jubail, Kingdom of
Saudi Arabia, has recently beencompleted, and achieved an
impressive 100 million manhoursLTI free. We were the overall
PMC contractor with SHARQ,and also the EPCm contractor
for the Utilities & Offsites (U&O)portion of the project.
A mega-achievementon a mega-project
100
millionsafe hours
11FW NEWS
critical hazardous construction reviews including detailedaccess and lifting studies as well as specific HSE training.The work was undertaken by an experienced and dedicatedFoster Wheeler/SHARQ management and supervisory teamusing a local civil and steelwork contractor with goodexperience and knowledge of the SHARQ facility.
This demonstrated the strong HSE culture on the project,which led to a Foster Wheeler record-breaking 42.2 millionmanhours for the U&O project without a single lost-timeincident (LTI) since the very first day of the on-site phase,contributing to the truly remarkable 100 million LTI-freemanhours achieved for the 3rd Expansion Project overall.
The U&O project earlier received the SABIC MEGA ProjectHSE Award for its safety performance during 2008. This wasthe first time SABIC had made such an award and we wereextremely honoured to have been selected as the winner.
Main image: Ian Guy (9th left), along with FW commissioning managersBrian Knutsen (8th left) and David Stitt (11th left) and members of the FW commissioning team at the boiler feedwater pump area.
Ian Guy (centre), presenting a 'Best Contractor' HSE Award to Qazi Murtaza,SBG project manager for the flare disinvestment.
“Once again we demonstratedthat a safe site and safe workingis fundamental to overallproject success.”Ian GuySenior Resident Site Manager, Foster Wheeler
Foster Wheeler forms
Saudi JVWe have formed a jointly-owned SaudiArabian company, Foster Wheeler SOFCONConsulting Engineering Company. A jointventure with SOFCON, the new entity isplanned as a regional engineering hub andwill be based in the city of Al-Khobar in theKingdom of Saudi Arabia.
Foster Wheeler SOFCON will focus onproviding full-service engineering and projectmanagement services for onshore/offshoreoil and gas, refining, petrochemicals andassociated infrastructure projects inSaudi Arabia.
“Foster Wheeler and SOFCON have a long andoutstanding record of successful co-operation inproject execution in Saudi Arabia. The formationof this new company demonstrates the ongoingcommitment of our two companies to work togetherto deliver successful projects in Saudi Arabia and to provide high-quality services and expertisefrom a local base.”
Stephen Culshaw (pictured left)Managing Director, Commercial Operations, Foster Wheeler Energy Limited
“It is our goal to make Foster Wheeler SOFCONthe leading full-service engineering and projectmanagement provider in Saudi Arabia, deliveringprofessional and competitive services in front-endengineering, detailed engineering, procurement,construction and project management. The new entitywill bring an enhanced value proposition in thedevelopment of the local economy and capabilities.”
Ala’a Fattani (pictured right)President & CEO, SOFCON
High-quality services from a regional base
12 FW NEWS
Alliance extensionSABIC UK Petrochemicals Limited
We have an alliance contractwith Saudi Basic IndustriesCorporation (SABIC) toprovide design and technicalservices for its petrochemicalsites at North Tees andWilton, both in Teesside, UK.We’ve been working at thesesites under an alliancerelationship for six yearswhich has now been extendeda further two years.
Our site-based team is supported byour local office in Middlesbrough,and can also access specialisttechnical experts from our otheroperations whenever necessary.
“The long-term relationship withFoster Wheeler has delivered
some of the most complex andchallenging capital projects
seen on the site in recent times.The schemes have beendelivered to the highest
standards of safety and qualitywhich has been recognised bysite operations and celebratedby our integrated team. As our
business environment changes,the Alliance has been shaped
into answering both our needs.”Colin Stewart
Engineering Services Director, SABIC
Seated (left to right): Steve Heath, UK purchasing manager, SABIC; Jon Nield, director,project executive, FW; Colin Stewart, engineering services director,SABIC; Frazer Mackay, divisional director, UK operations, FW.
Standing (left to right):Graham Duce, general manager, Teesside operations, FW; AdrianCollins, project manager, SABIC; Huw Jones, manager of projects,Teesside operations, FW.
We support SABICby delivering:• consultancy concept studies• process feasibility studies• detailed design• design safety• engineering support to
construction & commissioning• modification & maintenance
design
“The right results...the right way”
Singapore success
Chevron Oronite, a subsidiary of Chevron, develops and markets additivesthat improve the performance of fuel and lubricants. The Jurong Islandadditives facility in Singapore has been in production since 1998 and isChevron Oronite’s main manufacturing site in the region. According toChevron, it is also the largest plant of its kind in Asia.
After our successful completion of the FEED and cost estimate in 2007 for the plannedexpansion of the facility, adding a detergent unit and associated utilities, we were awardedthe EPCm contract for the expansion in 2008. In November 2009, we successfully handedover the project to Chevron Oronite. Since then, the plant has been operating to the fulldesign capacity. Our Singapore team worked very closely with our client’s team and theresults speak for themselves: completion on time, on budget and most importantly, safely.
We are extremely proud of the very strong incident- and injury-free culture that wasembedded in the entire work force, delivering a world-class safety performance,with no lost-time injuries. The integrated team approach also delivered animpressive record of commissioning-to-rated throughput in four days.
14 FW NEWS
“We were committed to get the right results,the right way, guided by our values. We completedincident-free, on time, within budget." Ramamoor RaghunathanProject Manager, Chevron Oronite Pte Ltd
Left to right: Douglas Motion, director of project execution, FW APAC; Ramamoor Raghunathan, project manager, ChevronOronite Pte Ltd; Vasant Malhotra, project manager, FW APAC; Goh Koon Eng, general manager, manufacturing & supply,Chevron Oronite Pte Ltd.
15FW NEWS
Our Business Solutions Group has been undertaking a study forthe Energy Technologies Institute (ETI) for its Carbon Capture
and Storage Programme. ETI is a UK-based partnershipbetween BP, Caterpillar, EDF Energy, E.ON, Rolls Royce,
Shell, and the UK Government.
ETI’s mission is to accelerate the development, demonstration and eventualcommercial deployment of energy technologies within the heat, power and
transport sectors which will increase energy efficiency, reduce greenhouse gasemissions and contribute towards meeting the UK’s energy target
to reduce greenhouse gas emissions by 80% by 2050.
One of ETI’s focus areas is the application of CO2 capture technologieswithin the power sector, and this has been the subject of our study.
We started work in April 2009, developing performance and economicbenchmarks for a series of state-of-the-art power generation schemes
comprising natural gas and coal feedstocks combined with pre-combustion, post-combustion and oxy-fuel CO2 capture technologies.
During the second phase of the study we evaluated the performanceand economics of a range of novel CO2 capture technologies, each
targeted to improve the efficiency and economics of power generationwith CO2 capture when compared with the benchmark schemes.
The results of our study will play a major part in helping ETI to determinewhich of the novel technologies it will support into further development,
demonstration and eventual deployment phases.
16 FW NEWS
expertiseProviding carbon capture
17FW NEWS
Going GREENERquickly and safely
Shell Bioethanol Blending Project, UK
Since March 1997 we have been Shell’s alliance partner at its Stanlow ManufacturingComplex in the UK. We provide basic design, EPC and project management services.Under our alliance, we have successfully completed the fast-track design, installation andcommissioning of bioethanol blending facilities at Stanlow, on time and under budget.
The new facilities supply ethanol for blending into motor gasoline inorder to meet the UK Renewable Transport Fuels Obligation target,intended to help meet the UK Government’s climate changeobjectives as well as ensuring security of energy supply,by placing an obligation on fuel suppliers to ensure
that a percentage of their road transport fuels ismade up of biofuels.
Highlights include:• Maximising the use of existing
infrastructure and facilities indelivering this project
• Over 3km of interconnectingpipeline installed within existingcongested refinery pipe tracksto connect the four projectequipment areas
• Installation of new electrical andinstrument infrastructure, includinga new fibre-optic link to the north sideof the refinery
• A new marine loading arm installed on a heavily occupied existing jetty
• A new ethanol denaturing facility and fiscal metering station, including storagetanks, dosing package and road car unloading facilities
• Refurbishment and upgrade of the main storage tank and bund for ethanol storage
• Break tanks and terminal feed pumps just prior to the refinery battery limit to supplythe road distribution terminal
Safe & successfulOur usual uncompromising approach to safety ensured that over 250,000 construction
manhours, with a peak labour force of 150, were worked by the alliance and the subcontractorswithout a single lost-time or recordable injury.
“This was an extremely
challenging project with tight
deadlines for operational start-up,
requiring a new execution approach and
very close co-operation between Shell,
Foster Wheeler and the construction
contractors. This level of co-operation and
performance could not have been achieved
without the established alliance relationships
and the commitment and drive of the
Foster Wheeler team.”Nigel Keech
Manager, Projects & ConstructionShell Stanlow
18 FW NEWS
Cle
ve
rtu
rn
around solutions
“The unusual
approach taken with the
main fractionator proved to be a
well-engineered and viable method
of shell band replacement, offering
substantial cost savings when
compared to a traditional heavy
lift/revamp method.”
John PaynePrincipal Consultant, Static Equipment
Foster Wheeler
Our UK operationwas recently involvedin the turnaround at
Petroplus’ Coryton refineryin the UK, delivering severalengineering projects safely
and on schedule.
19FW NEWS
The challengesThe turnaround involved two key challenges;the replacement of two corroded sections of shell,one a 2m-high band midway up the 5.2m-diameter,40m-tall main fractionator column, and the other, a10m-high cone section 20m up from grade on the50m-tall depropaniser column.
A cunning plan!For the main fractionator modifications it was not feasibleor economically viable to remove the top half of the column.The required lift capacity for this activity made craneavailability at short notice a significant risk. The necessarydisinvestment and additional support of a substantialamount of large-bore piping would also have added to theshutdown duration.
To mitigate these risks our team devised a method ofreplacing a band of the column’s shell without removing thevessel’s top section. To our knowledge, this had never beendone before on this scale. Several options were consideredbefore we decided to replace the shell in manageable-sizedpetal pieces, which allowed the band to be replacedincrementally in eight 45-degree sections.
The petal pieces were supplied complete with internal traysupports and downcomers to minimise site work. A skidtrack was designed and used to move the pieces aroundthe column. This allowed controlled installation into therequired position where each petal was welded into placebefore the removal of the adjacent petal piece.
In suspense!For the depropaniser tower in the alkylation unit, the complete10m-high cone section was replaced in one piece. The 90-tonneupper tower section was first lowered using lifting lugs that wespecially designed.
Due to the restricted plant space available, the upper towersection was temporarily supported in the vertical in a bespokeframe which used guy ropes from the tower’s top nozzle toa structural steel frame, weighted down in each corner bycrane weights. This frame was engineered to allow accessto replace all of the internal trays and to fully reinstate thebottom weld preparation.
The 10m-high cone section was then removed and scrappedbefore the fully-dressed new cone section was lifted andinstalled. The modified upper tower section was then reinstated.
Safe and successfulWork on both items was completed safely and ahead of schedule.Our meticulous planning, creativity in developing new solutions,and years of experience in engineering and executing complexturnarounds delivered a winning combination once again.
deliver results...
Above right: Main fractionator with one petal removed.
Above left: Solid Edge model of fractionator showing barrel of shell to be removed.
Left: John Payne (front) with Thomas Grant (left), static equipment engineer, andDaniel Darby, technology engineer, all from FW.
notherADCO
upstream successOur UK-headquartered operation has beenawarded a project management consultancycontract by the Abu Dhabi Company forOnshore Oil Operations (ADCO) for the BabField expansion and the development of theQusahwira Field in Abu Dhabi, UAE.
Our primary role as PMC will be to manage the EPC tendering andaward process and the EPC execution phase on behalf of ADCO.
“We look forward to further developing our long-standingrelationship with ADCO. We fully appreciate the importance of this multi-field infrastructure project and will bring our in-depthupstream project expertise to help to ensure the successful deliveryof this key investment with minimum disruption to the overallproduction from the Bab and SAS (Sahil, Asab and Shah) hubs.”
Umberto della SalaPresident & COO, Foster Wheeler AG
20 FW NEWS
This year’s conference, themed “10 Years and ComingOn Strong”, addressed new operational issues that areassociated with deepwater subsea operations.
The five plenary sessions covered charting a coursethrough a troubled economy, innovative technologies,reliability, flowlines and risers, and hydrateremediation and installation of a fifth well in a fielddesigned for four wells. With the upstream marketreported to be a very busy market in the near future,the general mood of the conference was upbeat.
For the first time, we had the opportunity to exhibitat this show. Houston-based subsea specialists OPEEngineering, acquired by Foster Wheeler USA inApril 2009, has participated for several years.
The conference was successful in generating namerecognition for the new Foster Wheeler Upstreamgroup, led by CEO Clive Vaughan, and in highlightingthe specific capabilities of Atlas and OPE, keyelements of Foster Wheeler’s fast-expanding globaloffshore and onshore upstream service offering.
In March 2010, around 2,800 people participated
in the 10th Annual SubseaTieback Forum and Exhibition
in Galveston, Texas.Overall, 175 companies
exhibited in thethree-day event.
Showcasing our Subsea skills
2010 Subsea Tieback Forum & Exhibition
“The conference turnout was outstanding. We were very pleased withthe number of interested clients that we met. The Foster Wheeler namegenerated a significant buzz around the conference hall and we werethrilled at the positive reaction to our rapidly increasing upstream capability.The subsea tieback industry is a key target for our upstream team.” Clive VaughanCEO, Foster Wheeler Upstream
21FW NEWS
22 FW NEWS
Celebrating operation of a new
LNGterminal We have been providing project management consultancy services for
Canaport LNG Limited, a partnership of Repsol YPF, S.A. and Irving Oil Limited,for the new LNG receiving terminal in Saint John, New Brunswick, Canada.
23FW NEWS
This terminal, for which the investment costexceeds US$1 billion, is the first LNG terminalbuilt on the east coast of North America in 30years, as well as being the first LNG receivingand regasification terminal in Canada.
The send-out capacity of the facility is 1.2 billioncubic feet per day of natural gas, enough to heatfive million homes.
Our scope of work included project management,and technical advisory services for the detailed
engineering, procurement, construction andcommissioning and start-up phases.
The facility began operations in June 2009when it received its first shipment of LNG onthe Bilbao Knutsen from Trinidad & Tobago.
Our work continues with upcoming performancetests and finalisation of the construction ofexpansion work, which includes a third160,000 m3 tank.
Image: Copyright of Canaport LNG Limited
‘The Big Pour’BP Whiting Refinery Modernisation Project
24 FW NEWS
25FW NEWS
BP’s objectives are to enable the refinery to processheavier crude and to increase its gasoline productioncapacity by 1.7 million tonnes. The WRMP includes theconstruction of a new coker, crude distillation unit, gas-oil hydro-treater, and sulphur recovery facilities and anumber of environmental improvements. We are theEPCm contractor for the Coker Pillar Project, a key partof this huge investment.
In January 2010, the WRMP team completed theproject’s largest concrete pour. The task included13 continuous hours of work, using 55 trucks for 480deliveries to pour 4,760 cubic feet of concrete. The pourformed the base mat foundation for BP’s new 102,000barrels per stream day delayed coker.
The foundation base is 66 feet wide, 280 feet long andseven feet deep. The foundation rests on 780 auger-castconcrete piles, each sunk 85 feet below the surface.This will eventually support six new coke drums, eachweighing nearly 400 tons. The entire coker structurewill be 350 feet tall. WRMP construction began in May2008 and completion is scheduled for 2012.
“We are very pleased about the concrete pour and theprogress we are making on this project. This pour wasthe culmination of months of planning, strategising andco-operation among several groups. We used just aboutall the concrete resources in this area. I’m very proudof our team’s accomplishment.”
Rob ManachProject Director, WRMP, Foster Wheeler USA
BP is making a huge investment in the Whiting RefineryModernisation Project (WRMP), the largest-ever privateinvestment in Indiana, in the US.
“This is like filling an American football field with concrete to about three feet belowthe crossbar of the end-zone goalpost. The new coker will utilise Foster Wheeler’sSYDECSM technology, and will replace the existing coker. It will bolster process safetyat the plant through increased automation, while increasing coke and naphtha output.”Jacobus NieuwenhuijzeConstruction Director, WRMP, BP
The Reficar Cartagena Refinery ExpansionProject in Colombia is progressing very well.
Reficar is a wholly-owned subsidiary ofEcopetrol S.A., Colombia's
national oil company.
Cartagena Refinery Expansion Excellent Progress
26 FW NEWS
Our Houston-headquartered US operation is the project management consultant for this project,which will expand the refinery's capacity from 80,000 barrels per day (bpd) to 165,000 bpd. Theexpansion will also improve the fuel quality to meet Colombian and international environmentalspecifications. The upgraded facility will produce ultra-low-sulphur gasoline and diesel froma heavy crude oil slate.
“The overall effort is progressing very well at this stage for such a large, complicated project. Thereare 14 new process units, and multiple licensors involved in the design of the refinery expansion.There will be significant technology transfer as the engineering and site team trains local personnelin multiple crafts and operations to maintain the complex refinery operations. We are currently ina bridging period of transition from the FEED to the EPC phase of the project. EPC contracts areexpected to be in place soon, with mechanical completion scheduled for November 2012. Our clienthas expressed confidence that there will be a continuation of the co-operation and teamwork thathas put this US$3.7 billion investment project in a position to be very successful.”
Terry ReynoldsProject Director, Foster Wheeler USA
Early worksThe Cartagena job site is already a hive of activity, withearly works underway, such as site preparation cut and fill,and construction of the new roll-on roll-off marine dockfor receipt of heavy equipment and materials used onthe project.
One particular early work activity that has garnered focusedattention is the relocation of an ‘arroyo’, a stream or in thiscase drainage ditch, that runs perpendicular across theentire job site. As the rainy season approaches this flow ofwater needs to be redirected to allow for drainage of stormwater without disruption to the ongoing project activities.
Procurement opportunities for savingsOur procurement capabilities are concentrated in providingopportunities for capital cost savings for our client. As ourUS operation is also project management consultant for the significant expansion of Ecopetrol’s Barrancabermeja
Refinery in Colombia, we are committed to co-ordinate and deliver synergies from procurement across bothprojects to achieve cost-effective procurement of equipment and materials.
Relationships between the Foster Wheeler and client teamsare very positive with high energy levels, with a strongfocus on clear roles and responsibilities and achieving asuccessful outcome for this major project.
“Above and beyond” awardReflective of that effort is the recognition of Aymeth Bediaas an “Above and Beyond” recipient for the month of March2010. As our procurement co-ordinator, Aymeth worksclosely with Reficar management on the long-lead andcritical equipment negotiations, and was nominated by the client as a direct result of her diligent efforts. Aymeth(pictured above, left) and the Foster Wheeler team are both extremely proud of this recognition.
Above left: “Above and beyond” award winner, Aymeth Bedia, procurement co-ordinator; and Chris Brown, SVP operations, both FWUSA.Above right: Cameron Mason, VP BDM, CB&I; John Redmond, EVP, CB&I; Federico Maya, VP, Ecopetrol; Javier Genaro Gutiérrez, president, Ecopetrol; Masoud Deidehban,executive project director, CB&I; Orlando Cabrales, president, Reficar; Pedro Rosales, EVP, Ecopetrol; Carlos Bustillo, project director, Reficar; Terry Reynolds.
27FW NEWS
28 FW NEWS
Celebrations for aground-breaking plantShell’s mono-ethylene glycol plant
S I N G A P O R E
29FW NEWS
The official opening of Shell’s mono-ethylene glycol (MEG) plant on11 December 2009, attended by Mr Lim Hng Kiang, Singapore’s Ministerfor Trade and Industry, was an important milestone in the run-up to the2010 completion of the Shell Eastern Petrochemical Complex.
We were the EPCm contractor for the MEG facility on Jurong Island,Singapore, and for the related modifications at Shell’s Pulau Bukomrefinery under the Bukom Refinery Modifications sub-project. We alsodeveloped the FEED for both of these elements.
Image: Courtesy of Shell Eastern Petroleum (Pte) Ltd.
30 FW NEWS
A technology ‘flagship’Successfully commissioned and in production inNovember 2009, the 750,000 tonnes per annumplant is one of the largest MEG plants in the worldand, as the largest MEG plant using Shell’s OMEGAtechnology, it is a flagship project for Shell.
Shell Chemicals advises that the plant has thehighest yield of MEG from ethylene whilst reducingCO2 emissions, waste products and steamrequirements. The plant design incorporates thelatest technological developments to reduce itsoverall carbon footprint.
MEG is a vital ingredient for polyester fibres andfilms, resins and engine coolants. End productsrange from clothing, packaging, kitchenware andanti-freeze, with the market for such productsexpanding, particularly in the Asia Pacific region.The annual output from the MEG plant is sufficientto manufacture 6.7 billion shirts, just about onefor every human on the planet!
Shell’s mono-ethylene glycol plant
“The project teamwholeheartedly adopteda ‘yes, we can’ attitude,which helped enormously inidentifying and overcomingthe many challenges facedin designing and deliveringa world-scale plant usingnew technology, in a veryshort schedule.”Ed Dziewulski (pictured)MEG Project Manager, Foster Wheeler
S I N G A P O R E
31FW NEWS
World-class HSEThe HSE performance on this project is a major successstory. Foster Wheeler and the contractors it managedachieved more than 13.5 million manhours without a lost-time injury. This was a challenging project, with a diversemulti-cultural workforce, mainly from the Southeast Asianregion. The project was benchmarked with the lowest totalrecordable case frequency of 0.68 within Shell projectsworld-wide, and represents a pacesetting performance.
The project team recognised early the importance of high-standard welfare facilities for the workforce and the projectwas one of the first to introduce a camp facility on JurongIsland with language schools, site HSE training and internetcommunications, all of which contributed to the strong HSEculture at site.
SHARP HSE AwardWe at Foster Wheeler are very proud that our world-classHSE performance was recognised with the presentation of aSHARP (Safety and Health Award Recognition for Projects)Award presented by the Workplace Safety & Health Councilin collaboration with Singapore’s Ministry of Manpower.
Our thanks must also go to the Shell team for its continuoussupport in establishing and maintaining a very positive HSEenvironment for the project.
A challenging scheduleThe heated marketplace gave us a seriously compressed and challenging time line to construct and commission theMEG plant. In fact, at the start the probabilistic model ofsuccess was only 10%!
The early procurement of long-lead equipment, includingtwo 1,375-tonne reactors and columns, was pivotal tothe success of the pre-dressing and heavy lift programme,which was itself instrumental in the success of the project.
Not for the first time, our project team embarked on acampaign of mentoring and accelerating the keyinstallation contractors.
A typical milestone was to install, chemically clean andcommission 65km of large diameter piping in 50 weeks,and simultaneously complete 5,000 electrical andinstrumentation loops. These targets could only beachieved by a strong leadership team and experiencedFoster Wheeler and Shell project teams working togethertowards the same goals.
Major successes included the completion of the substation,cooling tower, control room, main structures and heavy liftschedules on time and the final push to complete themechanical, piping and electrical and instrumentation works.
How clean is your project?MEG has five major compressors which need to be workingin stable, harmonious conditions to produce on-specificationproduct. The main process gas loops needed stringentcleanliness to achieve a flawless start-up.
The size and volume of the systems required co-ordinatedefforts by the construction and commissioning teams tocomplete the work in a very narrow window, with piping of88-inch diameter and up to 2km in length requiring eitherchemical- or water-blasting levels of cleanliness.
The ‘cleanliness and tightness’ part of Shell’s ‘Flawless* Start-Up’ initiative provided real benefits during commissioning andminimised trips due to leaks and blockages.
Early commissioningAlthough the MEG plant was complete by November 2009,the commissioning process actually started back in early2006 when the commissioning manager and senior engineerjoined the project to start the planning and preparationactivities. Very soon after this the commissioning team joinedup with Shell operations personnel in what would become acombined effort to meet the challenging completion schedule.
The Foster Wheeler commissioning team, including eight Shell operations assignees, became a multi-national force with personnel from Foster Wheeler’s offices in the UK andIndia as well as client personnel from the USA, India, China,Malaysia and the Philippines. The team was supported bynearly two hundred personnel from the mechanical, electricaland instrumentation contractors.
Tremendous achievementThe teamwork, positive attitude and meticulous planningpaid off. Through everyone’s efforts we have built a ground-breaking plant, safely, and to a very challenging schedule.This has been an outstanding achievement by a high-performing Foster Wheeler and Shell team.
‘Yes, we can’ has become ‘Yes, we did!’
* ‘Flawless’ is a Shell trademark.
32 FW NEWS
SwordIn November 2009,
Foster Wheeler was presentedwith a British Safety Council
(BSC) Sword of Honour, one of40 organisations worldwide to have
attained the prestigious award.
The Sword of Honour scheme, now in itsthirtieth year, recognises organisations that haveimplemented safety systems that are among thebest in the world. Only organisations that achieve
the maximum rating of five stars in the BSC’s FiveStar Health and Safety Management System (HSMS)
Audit are eligible to apply. The Foster Wheeler-led JVexecuting the EPC of a significant portion of ExxonMobil Asia
Pacific Pte Ltd’s second petrochemical complex in Singapore achieveda Five Star HSMS Audit rating with a world-class score of 98.4%.
Applicants for the Sword of Honour have to prove that theyhave a culture of aiming for best safety practice throughout
the organisation. The application, which covers key areas of safety activity, is independently adjudicated and the
competition this year was intense. The award of theSword of Honour to the Foster Wheeler-led JV is based
on its demonstration of continuous improvement inits safety management system, over and above its
achievement of a five-star rating.
“I send my congratulations to all of thoseorganisations being presented with a Sword
of Honour by the British Safety Council.These awards recognise the crucial
success that they and their employeeshave achieved in their pursuit of
excellence in the management ofhealth, safety and environmental
matters.”
Gordon BrownUK’s Prime Minister
of Honour
Kedrion is a biopharmaceutical company specialising in the development,manufacture and distribution of plasma-derived medicinal products.
An existing plasma fractionation plant will be upgraded and expanded in line withGood Manufacturing Practice, including the installation of a new production line.During the upgrading works, the existing line will remain in operation. The plantis expected to be completed in the first quarter of 2011.
“We are very pleased to assign the execution of such an important project toFoster Wheeler. The strong co-operation between Foster Wheeler and KedrionGroup has been developing as a real partnership, aimed to get the target.”
Rodolfo FranceschiniGlobal Operations Director, Kedrion Group
We have been awarded an EPCm and commissioning/qualificationsupervision contract by Kedrion Group and its Hungarian-controlledHuman Bioplazma LLC for the upgrading and expansion of a bulkplasma fractionation manufacturing facility at Gödöllö in Hungary.
Biopharma winHungary
33FW NEWS
34 FW NEWS
A key activity during many of the feasibility studies we undertakeis the assessment of potential greenfield sites. Recently, we haveassessed greenfield sites in locations including Vietnam, China,
Brunei, India, Nigeria, Uganda and Morocco.
Helping our clientsfind the right site
Greenfield site assessments
35FW NEWS
For more information, please contact us at [email protected]
Main picture: Assessing a potential island site in a Far East location.
Our assessments gather as much data and
information as possible about existing infrastructure
and future requirements for the construction and
operation of the proposed facility.
Site visits typically comprise a combination of tours around the site and region,
taking photographs, and meetings with the port authorities, government, and
environmental, industry and commerce ministry personnel, discussing socio-
economic issues relating to the potential site or sites. Our visit team typically
includes experts in HSE, construction and logistics, plant layout and cost estimating.
We request and analyse key information such as site location co-ordinates, maps,
details of other industry in the region, hydrographic/admiralty charts, port details,
meteorological data, transport infrastructure data, information about local towns
and villages, water and power availability and any regional development plans.
The report we deliver to our clients generally includes an analysis of costs, such as
land preparation, road and rail upgrades, and housing associated with the locations
evaluated. It provides observations on the proposed plot area, its infrastructure and
surrounding areas, assesses the site’s ‘fitness for purpose’, and complements other
market research and optimised process configuration studies that we also provide
for our clients.
Mike Whitling, one of our experts in this specialistarea, outlined how we approach this activity.
36 FW NEWS
Factors including more stringent product specifications for cleaner fuels, reduced demand for high-sulphur fuel oil and the
economic advantages of processing heavier, sourer crudes continue to drive increasing demand for hydrogen in refineries.
Steam reformer furnace manufactured by Foster Wheeler for a plant in West Africa.The heater, 750 tons weight, was delivered completely assembled.
Our Terrace WallTM solutionOur reformers have been in operation
for many years with a very widerange of feedstocks and have beenused for hydrogen, methanol, and
ammonia production.
Our proprietary Terrace WallTM steamreformer heater has a specially
designed radiant section with burnerterraces along lateral walls, and
burners that fire upwards against therefractory. The catalyst tubes are
arranged as a single row of verticaltubes, heated from both sides and
aligned along the centre of theradiant cell. The catalyst tubes areflanged at the top in order to allow
catalyst loading and unloading.
hydrogen challengeMeeting the
37FW NEWS
A particular feature is the mechanical arrangement of theTerrace WallTM radiant section which enables it to be deliveredto the site as a small number of fully assembled modules,complete with catalyst tubes, pigtails, burners and refractory.This permits the entire radiant section to be erected in amatter of days rather than weeks, resulting in significantsavings in site construction cost and schedule.
Further, the compactness of the Terrace WallTM heaterarrangement means that, where appropriate, the entirereformer can be fully pre-assembled, complete with allexternal piping, instruments, platforms and ladders.
Other advantages include:• Single train unit production up to 150,000 Nm3/hr
of hydrogen• Can operate in natural draft mode• Outlet temperature up to 920°C• Heat fluxes about 100,000 watts/m2
• Very compact design, reducing the plot area requirement• Minimum number of low-NOx burners• Operating cost saving (reduced number of rotating
machines)• Very simple and reliable design, giving investment and
maintenance cost savings• High feedstock flexibility • Uniform heat flux distribution giving long reformer tube life• Sloped walls with two firing levels enabling control of flux
density along the catalyst tube• Positive reformer furnace firing control
Our technology offers several advantages over competing technologies:• High flexibility to handle a full range of feedstock from
natural gas to heavy naphtha• Uniform heat flux distribution giving long reformer tube life• Sloped walls with two firing levels enabling control of flux
density along the catalyst tube• High reliability• Positive reformer furnace firing control• Low maintenance requirement
Special benefitsThe specific advantages of sloping walls include avoiding tube hot spots and prolonging tube life.
The inclined terrace walls are uniformly heated vertically by the rising flow of hot gases, with each terrace capable ofbeing independently heated to provide the particular heat fluxdesired in its zone. The operator can match the vertical heatflux to the process heat demand within the catalyst tubes.Controlled delivery of heat to the reformer catalyst tubes helpscontrol hotspots which can reduce the design life of the tubes.
The incline of the wall also localises the effectiveness of theterrace to that portion of the heat-absorbing surface directlyopposed to it. Actual experience has shown that the TerraceWallTM design accomplishes this to a far greater extent thanany flat wall construction, and is distinctly better than down-fired designs.
Flame impingement on catalyst tubes is practically impossiblein the Terrace WallTM design.
Continuous developmentRecent developments to further enhance the design andperformance of the Terrace WallTM reformer include:
• Selective catalytic reduction in convection section• Ulra-low-NOx burners• Increased catalyst tube length, which reduces tube numbers
Our experience and expertise in optimising and revampingexisting hydrogen systems can help our customers find thelowest-cost route to meeting their hydrogen needs. If a newhydrogen plant is required, it is important that it is right-sizedin line with our clients’ business objectives and with current,and potentially future, requirements.
For more information, please contact us at [email protected]
Schematic of our twin-cell, Terrace WallTM reformer.
“Recognising its performance inpreparing the FEED, NSRP ispleased to award Foster Wheelerthis contract for additional technicaland commercial services.”Fumitaka HosakaProject Director, NSRP LLC
We recently completed, on schedule, the FEED for this newcomplex, which will be Vietnam’s second refinery. We willnow support NSRP in the preparation of the EPC enquirypackages, bid clarifications and bid evaluation, and provideall necessary technical and commercial support leading toaward of the EPC contract.
We have supported refining development in Vietnam,a country with extensive oil and gas reserves, since thebeginning. We previously prepared a high quality FEED forVietnam’s first refinery at Dung Quat, now in operation.
Excellent performanceearns NEW AWARDNghi Son Refinery & Petrochemicals Complex
Vietnam
We have been awarded a furthercontract by Nghi Son (NSRP), for
the provision of technical andcommercial services for the planned
Nghi Son Refinery andPetrochemicals complex in
Vietnam. NSRP is a JV companycomprising PetroVietnam and
its international partners.
38 FW NEWS
“Thirty-five companiesexpressed interest in
undertaking this study.Out of these, six were
shortlisted to submit theirproposals and the proposal
from Foster Wheeler wasconsidered the best.”
Fredrik Kabagambe-KaliisaEnergy & Mineral Development Permanent Secretary
for the Ugandan Government
The Government of the Republic of Uganda has awarded us afeasibility study for the integrated development of an oil field andassociated oil refinery in Uganda.
The study, which is scheduled for completion in mid-2010, will determine andquantify the benefits of refinery development to the Ugandan economy and theentire East African region, and evaluate and determine the appropriate location,cost and configuration for the planned 150,000 barrels per day refinery, whichwill process Ugandan crude. Our study, which we are executing in Reading, UK,also includes an assessment of options for the development of the oilfield, crudetransportation, and an evaluation of the relative economics of developing the newrefinery versus alternative options, including pipelines, for exporting the crude oil.
The project will see our Business Solutions Group and our Upstream expertsworking together to develop a concept covering the whole project from well tofinished product, clearly demonstrating our ability to undertake complex multi-discipline projects that cross the boundaries of traditional business lines.
“Our proven track record in objectively evaluating a wide range of optionsfor upstream oil and gas field development and for attaining the optimumconfiguration for grassroots refineries, together with our expertise in projectsin remote locations, means we are ideally positioned to help the Ugandansachieve a viable, realistic plan for implementing this important project.”
Umberto della SalaPresident & COO, Foster Wheeler AG
Uganda’s first oil refineryRealising the vision
39FW NEWS
Ten million safe hours!ExxonMobil Sriracha Umbrella Projects
We recently celebrated the outstanding achievement of ten millionmanhours without a lost-time incident on the Sriracha Umbrella Projects
(SUP) contract at ExxonMobil’s refinery in Thailand.
SUP has been running continuously for more than 15 years and stands testamentto our hard work to create a safe working atmosphere within the team, together
with the application of a robust behavioural-based safety programme.
Over the years, our team has executed a wide variety of projects in terms of scope, type, size and schedule. Our success lies in our flexibility
and in our responsive approach to a challenging range of projects.
A strong vote ofconfidence
Bangchak RefineryIn 2009, we were awarded the FEED for Phase II
of the Product Quality Improvement Project for BangchakPetroleum Public Company Limited at its refinery
near Bangkok.
This project was launched to meet Euro IV fuel qualityspecifications, which come into force in Thailand
at the start of 2012.
“This award continues our long-standing relationship withthe Bangchak refinery. This started with the clean fuels
project, which was completed in 2000. This latest award is astrong vote of confidence from our client in the quality of our
design and project management.”
Graham PopeGeneral Manager, Thailand Operations
Foster Wheeler
Having recently celebrated40 years of success in
Thailand in 2009, we are verypleased to highlight more
successes in Thailand.
40 FW NEWS
foTHAILAND
IRPC twin awardsWe are delighted that Integrated Refinery &Petrochemical Complex Public Co., Ltd. (IRPC),has awarded us two projects at its integratedpetrochemical and refining complex at Rayong.
• A PMC contract for a combined heat and power projectcomprising six gas turbine generators, six heat recoverysteam generators, a demineralisation plant, a 115 kVsubstation and common facilities
• A contract for the FEED, ITB preparation andrecommendation for EPC award for a 100,000 tonnesper year propylene unit to increase feedstock supply tothe existing polypropylene plant
Extending a thrivingrelationshipPTTAR Clean Fuel
Continuing our successful working relationship with PTTAromatics and Refining Public Company Limited (PTTAR),
we were recently appointed PMC for the EPC phase of a clean fuel project at its refinery in Map Ta Phut, due for completion
at the end of 2011.
We have already provided PMC services for the FEED stage andmanaged the procurement of long-lead equipment, EPC bidding
activities and contractor selection.
The project will enable PTTAR to produce low-sulphur diesel productsthat meet Euro IV requirements.
The new facility, which comprises a deep hydrodesulphurisation unit and upgradedoffsite and utility systems, will have a capacity of 85,000 barrels
per day of diesel fuel with a maximum sulphur content of 50 ppm.
41FW NEWS
focusBANGKOK
CHONBURI
RAYONG
SRIRACHA
MAP TA PHUT
PTTAR
Esso Thailand
Bangchak Petroleum
IRPC
42 FW NEWS
“We are pleasantly surprisedhow smoothly the start-upwent. Now we can switch
production from our Europeanplants to the new capacity in
Malaysia obtaining true local supplierstatus. It’s time now to lever this
excellent plant with thedynamic market growth.”
Lars WallsteinDirector, Business Unit Specialties
PolymerLatex
43FW NEWS
successfulSafe
We were awarded an EPCmcontract in January 2008to build a new acrylonitrile-butadiene latex plant forPolymerLatex in Malaysia.
State-of-the-art facilityThe official opening of the RM250 million (US$74 million)state-of-the-art facility in Pasir Gudang took place in October2009. Equipped with the latest global-scale technology, allproduction lines of this new 100,000 tonnes per annum planthave started up and are now producing products for use inmedical and examination gloves.
Tailor-made teamAs usual, our bespoke solution for our client was both innovativein design and executed safely, successfully blending all of theskills, experience and local knowledge we have in our AsiaPacific operation.
• Our Singaporean operation provided overall projectmanagement and also played a key role in securing materialsand equipment from China
• The Thailand team undertook engineering and procurement• The Malaysian operation handled construction management
Safety achievementsOverall, more than one million manhours were worked on sitewith no lost-time incidents.
Well done to the project team!Left to right: Henry Ling, project manager, FW APAC; Werner Schaffrin, director ofengineering, PolymerLatex; Douglas Motion, director of project execution, FW APAC;Winfried Kraemer, project sponsor, PolymerLatex.
COAL-TO-44 FW NEWS
“We have developed a strong working relationship withShenhua Ningxia and Sasol during the feasibility study and hopeto continue our involvement in this ground-breaking project as itmoves into the next phase. We are very proud to be helping our
clients turn their CTL vision into reality to help China meetits growing need for transport fuels.”
Sheni JiwaProject Manager, Foster Wheeler
45FW NEWS
-LIQUIDSGround-breaking project forShenhua Ningxia and Sasol
The planned facility, for Shenhua Ningxia Coal Industry Groupand Sasol Synfuels International, will convert coal intoselected fuel products such as diesel, naphtha and liquefiedpetroleum gas. The facility will combine three key processes:
1. Gasification of coal to synthesis gas 2. Conversion of synthesis gas into liquid fuels using
Sasol’s proprietary technology 3. Refining the converted products into valuable
fuel products
World’s largest CTL facilitiesThe planned CTL facility will include the world’s largest coalgasification plant. Our extensive study reflects the huge scaleof the planned plant. Our breadth of experience in coal andgas conversion technologies, syngas, and refining, togetherwith a proven ability to integrate complex utility facilities werekey factors in winning this work.
We have been co-ordinating the work of several licensorsto optimise the process design configuration, as well asdeveloping the integrated utilities and offsites infrastructure.
Part of our work has involved studying the need to fabricatevirtually all the major equipment local to the site due tologistical constraints. The project has other challenges suchas the need to use some of the largest heavy lift cranes inthe world.
A team effortOur team is working on this project in Reading, UK and inour Shanghai office. We are also working closely with ourChinese partner, Wuhuan Engineering Company.
During 2009 we supported Shenhua Ningxia and Sasol intheir application for Chinese Government approval, whichwas submitted at the end of the year. We are now in the finalstages of the study, preparing our final report package andproject cost estimate.
For the last year our Reading-based Business Solutions Grouphas been working with our Chinese partner on a feasibilitystudy for a 90,000 barrels per day coal-to-liquids (CTL) plant inthe Ningxia Hui Autonomous Region, the coal-rich western partof the People’s Republic of China.
46 FW NEWS
This expansion project at the Mari El Refinery in theRepublic of Mari El, part of the Russian Federation,is a major investment. Based on a staged investmentapproach, the objective of the expansion of thishydroskimming refinery is to increase throughput to4.3 million tons of crude oil, maximise production ofautomotive diesel to meet Western countries’ fuelquality specifications and to cease production offuel oil for export.
Our FEED contract covers the first stage of this project,which comprises a new crude distillation unit/high vacuumunit complex, a naphtha stabilisation section, a new dieselhydrodesulphurisation unit, related auxiliary units, includinghydrogen production, an amine washing section, an amineregeneration unit, a sour water stripper and a sulphurrecovery unit. The hydrogen production is based on ourown Foster Wheeler Terrace WallTM hydrogen technology.
The expansion also includes a power plant designed tocover refinery steam and power consumption.
We have already completed the basis of design phase forthe entire refinery expansion. When released by the client,we will execute the subsequent stages, which foresee theaddition of a hydrocracker, a hydrogen plant, a solventdeasphalting plant, and a large power plant to burn theasphalt and export electric power to the public network, as well as the expansion of auxiliary and utility units.
We will provide project management services up tocommercial operation of the expanded refinery.
MAJOR EXPANSION WIN
Last November, the FEED contract signing ceremony for the Mari El Refinery Expansiontook place. The FEED contract will be undertaken by our Milan office in co-operation
with our Moscow operation and a Russian design institute, to deliver a finalFEED package in compliance with the project expansion targets.
47FW NEWS
We have been awarded a further extension to our contract to provide projectmanagement and technical consultancy services for the hydroprocessing complexat the Khabarovsk refinery in Russia, owned by OJSC ‘Oil Company Alliance’(OCA). The objective of this project is to increase the capacity of the existingrefinery by 50%.
We are now providing our services through the engineering and procurement phase, currently due forcompletion in July 2011. During this time we will continue to provide consultancy services to the clientacross all of the EPC contractor’s engineering disciplines as well as supporting planning, contract strategyand procurement activities.
Our contract with OCA has been in place since 2007. We have previously completed the FEED for theentire hydroprocessing complex, and the basic design for the hydrogen production facility, which usesFoster Wheeler technology.
Extending ourinvolvement
“Our relationship with OCAhas developed since 2007
and has strengthened withevery challenge that
the project has faced.We are delighted that
our involvement hasbeen extended.”
Frazer MackayDivisional Director, UK Operations
Foster Wheeler
KHABAROVSKHydroprocessing Complex
48 FW NEWS
The Pluto LNG Project at Karratha in Western Australia is
developing at a remarkable rate. We are part of the joint venture
executing the EPCm phase of this project for Woodside. The facility
will have an expected annual production capacity of up to 4.3mtpa.
PLUTOLNG
49FW NEWS
Taking care of the turtlesAs with all the projects we manage, there’s a strong
environmental focus at Pluto.
A key requirement of the regulatory authorities
responsible for approval of the Pluto LNG facility is the
sensitive management of fauna, including minimisation of
any impact on marine turtles.
We aim to ensure that all on-site staff are very aware of
our environmental commitments, through environmental
induction sessions.
We have also restricted access to the beach and have
developed a lighting plan for use during construction as
turtles are distracted from nesting if the lighting is too
bright. For night-time activities we ensure that the
lighting towers do not shine on to the beach.
So far this season the turtles seem to be doing well.
On Holden Beach turtle tracks and nests have been
observed and we have also identified one hundred
and one hatchling tracks heading towards the water
from the nests.
Image: Courtesy of David Pozarri, FWW Environmental Team, Pluto LNG Project.Turtle hatchling on beach near Pluto.
Thailand’s safe success The LNG plant has been designed to be constructed in
modular form and so there was a very strong focus on
progress at the Laem Chabang module yard in Thailand,
where the 264 modules have been assembled. The
workforce at the yard, with three large workshops
feeding fabricated pipe and steel for assembly, peaked
at about 12,000 people.
Marshalling all of the materials and then fabricating the
modules was a tough challenge, but one to which we’ve
risen, shipping all 264 modules to Australia by the end of
April 2010 in line with the plan.
We were proud that the assembly yards worked a
hugely impressive 36 million manhours without a single
lost-time injury (LTI), and the workshops completed a
further 11 million manhours without an LTI.
Meanwhile .... in KarrathaThrough 2009, the focus in Karratha was the civil work
while installing modules and beginning their hook-up.
The start of 2010 saw the ramping up of mechanical and
electrical and instrument (E&I) contractors introducing
over 200 people per week on to site. This will be the
main focus for the rest of the year
Completion of the main operational buildings such
as the central control room, substations and the field
auxiliary rooms which contain control systems, was
achieved during the first quarter of 2010 allowing
the E&I contractors to have full access to carry out
their work.
In line with the full modularisation of this project, the
central control room was constructed off-site in small
modular sections, reducing the requirement for
resources and time on site.
In fact, in March of this year, the Karratha site achieved
five million manhours without an LTI.
The process train team are right into mechanical
construction work with the installation and alignment
of the main compressors, installation of the airfins and
the hook-up of the large process modules.
Sharks & dolphins!Down at the jetty, all of the piling and structures for
the jetty are completed and the superstructure modules
are in place, with extensive hook-up work in progress.
People working in the jetty area have even been treated
to views of hammerhead sharks and dolphins!
100%
In fact, our GPG colleagues are celebrating the award to design, supply and erect the world’s largest 100% biomass boiler.
The contract was awarded by GDF SUEZ, one of the leading energyproviders in the world, for the design, supply and erection of a 190 MWe(gross megawatt electric) 100% biomass-fired circulating fluidised-bed(CFB) boiler island for the Polaniec Power Station in Poland.
We will design and supply the steam generator and auxiliary equipment,including the biomass yard, and will carry out the civil works, erection andcommissioning of the boiler island. Once complete, this will be the world'slargest biomass boiler burning wood residues and up to 20% agro biomass.
“This boiler demonstrates the capability of our state-of-the-art 'AdvancedBio CFB' concept that allows the co-firing of high alkaline agro biomasseswith wood-based biomass in utility-size power production. Our CFB product technology provides solutions for effective CO2 reduction in power generation through large scale 100% biomass utilisation which is an important part of Poland's energy future.”
Gary NedelkaCEO, Global Power Group
World’s largest
biomass boiler
Ground-breaking win in Poland
We have world-leading biomass expertisein both our Global Power Group (GPG)and in our Global E&C Group.
51FW NEWS
The plant, to be built in Kedzierzyn in Poland, isexpected to produce 300 MWe of electric power and500,000 tonnes per year of methanol from domesticcoal and biomass gasification.
Our study included a technical review of gasificationtechnologies, a comparison of two alternative plantconfigurations, detailed engineering activities for theselected configuration, and a preliminary financialanalysis of the whole project.
Efficient coal-based polygenerationThe polygeneration plant will gasify coal and biomass toproduce syngas that is shifted to increase the hydrogencontent and cleaned to remove sulphur and othercontaminants. Carbon dioxide is also captured to producea de-carbonised, hydrogen-rich fuel for power generationand a suitable feedstock for the chemical synthesis ofmethanol. The captured carbon dioxide is then transportedto the selected storage location for geological sequestration.
EU support for CCSCarbon capture and storage (CCS) is seen as one of thekey technologies for cutting CO2 emissions from coalpower plants. In close co-operation with industries andMember States, the European Union (EU) presentlysupports the development of CCS in coal-fired powerplants. The aim is to make emissions reduction in powergeneration using CCS commercially feasible by 2020. Ourclients hope that this planned project will be supported bythe EU as a demonstration plant under its New EntranceReserve 300 Programme.
“We expect tough competition within the EU among theeligible CCS demonstration plants. We have selectedFoster Wheeler for its recognised reputation to deliverhigh quality engineering services in clean coal withcarbon capture and storage applications.”
View our brochures on Coal-to-Products, Carbon Capture & Storage or Gasification at www.fwc.com/publications
CLEAN POWER
Planned demonstration project for Poland
We recently completed a technical and economic feasibility study fora polygeneration plant with carbon capture for Poludniowy KoncernEnergetyczny (PKE) S.A. and ZAK S.A.
with carbon capture
˛
Jan KurpPresident of the ManagementBoard of PKE S.A.
Krzysztof JałosinskiPresident of the ManagementBoard of ZAK S.A.
´
52 FW NEWS
“I am very appreciative of the measures
taken by Foster Wheeler to ensure a safe
working environment, while also assisting
ONGC at every stage of execution of the
important project.”
V K RameshExecutive Director & Plant ManagerONGC
Above left: Demethaniser, deethaniser and depropaniser distillation columns.Above: Malcolm Hubbard, retiring resident construction manager, FW.Left: A presentation by Shri P V Satyaprakash (right), deputy general manager, ONGC,to Pramod Kumar, new resident construction manager, FW.
53FW NEWS
Rich LNGThe facility, when commissioned, will process LNG fromthe adjacent Petronet LNG import terminal to extractethane, propane and butane before returning the leanLNG to the terminal for vaporisation and dispatch to thegas distribution grid. The products will form the feedstockfor the adjacent OPaL petrochemicals complex that iscurrently being constructed for an ONGC-led JV. Whencomplete the petrochemicals complex will produceethylene and high- and low-density polypropylene.
Our key roleWe have played a key role in this overall development.As well as our current role, we were previously projectmanagement contractor for the import terminal, whichwas completed in 2004 and which will now provide therich LNG to the C2-C3 plant. We are also the projectmanagement consultant for the site infrastructure for the OPaL cracker.
Early revenue streamThe OPaL facility is not planned for completion until2012 and consequently is not in a position to receivethe feedstock that will be available later this year.
As an interim measure, ONGC is currently constructing a road tanker loading facility to export the propane andbutane products and a pipeline along the pipeline corridorto OPaL to transport ethane to a nearby facility.
The road tanker loading facility is located within the C2-C3 plant plot area and will be commissioned later this year. It will enable the C2-C3 plant to be fullycommissioned and the plant performance demonstrated.The temporary export facilities will allow ONGC to realisean early return on its investment pending the completionof the adjacent OPaL petrochemicals complex.
Safety firstThroughout construction of the C2-C3 plant, ONGC, ourteam, and the EPC contractor have all worked closelytogether to ensure safe working on site.
Maintaining safe working in this remote location has beenchallenging, as much of the local labour force had littleexperience of working in an industrial environment. Theproject has expended over 12.5 million constructionmanhours. The efforts of all the people involved in theproject were recognised when the EPC contractor, alongwith ONGC, received a prestigious National Safety Councilof India Award for meritorious safety performance.
Next stepsOur team is currently supervising the construction of theroad tanker loading station and other finishing activities atsite. Later this year, we will assign a team to site to assistwith commissioning and plant performance testing.
A development hubThe C2-C3 plant will be the first process plant to beconstructed and commissioned within the new SpecialEnterprise Zone.
Since we started work on site in 2006 there has been adramatic improvement in the national road system andthe overall industrial development.
ONGC is playing a major role in the industrialisation ofthis region. We are very proud to be supporting ONGCand being able to play a part in this rapidly developingsector of the Indian economy.
plantONGC’s C2-C3
Since 2005, we have been working as project management
consultant for ONGC’s innovative C2-C3 plant, which is in the
final stages of completion at Dahej, a rapidly growing industrial
area in the Indian state of Gujarat.
54 FW NEWS
Brandenburg Gate, built in 1788-1791, was atthe centre of celebrations in November 2009.
55FW NEWS
SUCCESSFUL EVENTON A LANDMARK DATE!
The European Refining
Technology Conference
(ERTC) is the largest
refining event in Europe.
The 2009 conference
was held in Berlin in
November, coinciding
with the celebrations
marking the 20th
anniversary of
the fall of the
Berlin Wall.
Two of our experts presented at this key event. Mike Stockle,chief engineer of refining technology, presented a paper onDealing with Dieselisation.
Mike presented an overview of the various options, bothcurrent and in development, available to improve dieselmake from a refinery. He provided indicative overall massbalances for a number of scenarios to demonstrate thepotential benefits of these schemes for increasing diesel-to-gasoline ratio. He addressed the importance of crudeselection, optimising cut-points, improving diesel recoveryfrom the vacuum distillation unit, modifying FCC yields, the addition of residue upgrading, and technologies forconverting LPG and gasoline to diesel and convertinggasoline to petrochemicals.
Mike Green, principal process consultant, made apresentation on Energy Management in Design. Hehighlighted the way in which Foster Wheeler and AspenTechwork together to offer clients a value-adding combination:the modelling and systems capabilities of AspenTech withthe ‘real-world’ engineering and cost estimating expertise ofFoster Wheeler, providing clients with robust, constructibleand economic solutions to solve energy management needs.
As in previous years, we hosted a hospitality suite, offeringour clients a congenial and relaxing place to sit and chatwith our experts from the US, UK, Italy and France. It wasvery gratifying that our suite was so popular, especiallycompeting with the fireworks and celebrations in the city!
TEAMWORKWorking collaboratively towards common goals
