Alliance Oil Selects Contractors for Expansion of Khabarovsk Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Alliance Oil Company (Khabarovsk, Russia) (AOC) has selected Foster Wheeler Energy Limited (Reading, Britain), a subsidiary of Foster Wheeler Limited (NASDAQ: FWLT) (Clinton, New Jersey), to perform project management contractor services for an $800 million expansion of the Khabarovsk oil refinery. In addition, AOC has chosen Initec Tecnicas Reunidas (Madrid, Spain) to perform engineering, procurement and construction services for the project. AOC is also investing $200 million to revamp the refinery. Construction is expected to begin by summer 2008, and the new units are scheduled to start up by 2011.

The purpose of the expansion is to increase output of light products and meet Euro V fuel specifications. The expansion project will include a 1.1 million-ton-per annum (TPA) distillate hydrotreater, visbreaker, hydrogen plant, hydrocracker, and sulfur recovery complex to include amine regeneration and sour water stripping. The new units will utilize technologies from Foster Wheeler, Technip KTI, and Shell Global Solutions. The revamp portion will include increasing capacity of reformer and tying in new units to the existing units.

The Khabarovsk oil refinery began production in August 1935 with a capacity of 400,000 TPA. The refinery is the oldest and biggest producer of motor and boiler fuels in the Far East. The Khabarovsk refinery is currently processing about 4.7 million TPA (about 89,000 barrels per day) and produces diesel, gasoline, marine and furnace fuel oil, and several refined byproducts. In May 2000, the AOC took ownership of the refinery and several related companies dealing with petroleum products supply.

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