EUROPE INDUSTRIAL BRIEFS

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Researched by Industrial Info Resources

CHEMICALS

Europe’s Import/Export Acid Swing

Europe will become a net importer of terephtalic acid (TPA) from this until 2011 when it will return to becoming a net exporter. CMAI report s that fast-growing PET bottle resin capacity in Central Europe, the CIS and Baltic States and the Americas has caused the switch. With all planned capacity up to mid 2007 has been commissioned but another 9 million tons of effective capacity remains to be added before 2010. The upsurge in project approval has caused project implementation to slow with fears of over capacity. With at least another 3 million tons to be added 2010/12 operating rates could still recover in 2012.

MHI Builds Major Polish Chemical Plant

Mitsubishi Heavy Industries (MHI) has been contracted by Poland’s to build a large-scale chemical plant for the country’s leading oil refining and petrochemical company, PKN Orlen. Under the $ 435 million contract MHI will build a purified terephthalic acid plant at Wlocawak for production supply to the polyester filament and PET bottle markets. Construction will start in the second half of 2008 and the 600,000 tpa plant will be operational in October 2010.

Celanese OKs Ticona German Move

The Celanese board has approved the relocation of engineering polymer producing subsidiary Ticona from its current location in Kelsterbach in Germany southwest of Frankfurt to the Huchst Industrial Park. The move avoids expansion problems caused by Frankfurt Airport (Fraport) runway extensions and Fraport will pay Ticona $ 900 million. Building new state-of-the-art acetals facility on the Huchst site across the Main River will mean that staff and the supply chain remain intact, despite offers of cheap land and tax breaks elsewhere. The new plant will be the largest of its type in the world.

LNG

Ship-to-ship LNG transfer Project

A new ship-to ship LNG transfer installation and high-pressure discharge connection will be built in Zeebrugge, Belgium by Exmar, a local shipping company. Handling transshipment of LNG between carriers will increase Belgium’s gas supply options and strengthen the country’s position as a supply and gas transit center. Exmar is working on the project with Jan de Nul, Jacobs Engineering, ERM Benelux and Ecolas NV. It is designed for the simultaneous berthing of two carriers capable of regasifying on board and injecting gas directly into the national distribution grid. Exmar and its US partner Excelerate Energy developed the LNGRV concept.

Kellogg Upgrades Statoil Karsto Gas Facility

M W Kellogg, a KBR subsidiary has been awarded a $175 million EPC contract to upgrade and develop the Satoil gas treatment facility at Karsto Island north of Stavanger, Norway. The company undertook three previous major upgrading and expansion projects at the facility. Completion is scheduled for 2012 after work starts in second half 2008. Civil engineering detail design sub contractor is Norway’s Norconsult.

POWER

Galp Moves on Portugal’s Power Sector

Galp Energia, Portugal’s major oil company will challenge the former power monopoly EDP-Energias de Portugal in the domestic power market. Looking for new sources of revenue the new unit will trade as Galp Power and its new license allows for trade in the wholesale power market and the direct sale of electricity to customers. Galp currently will still earn about 90% of its revenue from refining and gasoline and petroleum product sales.

PETROLEUM REFINING

Foster Wheeler Bags Coker Contract

Foster Wheeler has won the EPC (engineering+procurement +construction) contract awarded by Petroleos del Norte for the construction of a 36,000 bpd delayed coking complex for Petronor’s 220,000 bpd Somorrostro refinery in Bilbao, northern Spain. Foster Wheeler Iberia executed the front-end design (FEED) and the contract covers coke handling, storage facilities and a gas concentration unit.

Technip to Build Polish Hydrocracker

Poland’s Grupa Lotos has awarded Technip the $ 637 million lump sum contract for the 45,000 bpd mild hydrocracking unit for the Gdansk refinery. The contract covers the EPC and is based on Shell’s OLC technology. Expected to go on stream in late 2010 it will increase throughput by 75% to 10.5 million tons per annum (tpa).

METALS & MINERALS

Mechel Invests $2.7 Billion to Up Production

The Russian steel and mining company, Mechel, is planning to invest $2.7 billion between 2007 and 2011 to upgrade its steel and mining divisions. The program will increase output of rolled steel by 26%, crude steel by 12%, coal by 47% and nickel by 66% compared to 2006 production. The spending on steel will be $1.5 billion and on mining $1.2 billion.

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