Expansion Project Proceeds at Polish Gdansk Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--Grupa LOTOS SA's (WAR:LTS) (Gdansk, Poland) 120,000-barrel-per-day (BBL/d) refinery in Gdansk is undergoing a major expansion project.

Gdansk refinery will complete "10+ Programme" in 2010. Grupa LOTOS is boosting the Gdansk refinery's annual throughput by 75%, from 120,000 BBL/d to 210,000 BBL/d. The installation of an atmospheric and vacuum distillation system at the facility will ensure this outcome.

Grupa LOTOS is also adding the following systems to the refinery: a hydrocracking unit; a hydrodesulfurization unit for diesel oils; and a processing heavy vacuum remnants unit, called ROSE (Residuum Oil Supercritical Extraction).

Auxiliary systems also are being added to the Gdansk Refinery through the 10+ Programme. The auxiliary systems include a hydrogen plant, an amine-sulfur complex, and storage tanks with a total capacity exceeding 200,000 cubic meters.

All major contracts for design, equipment, and associated contractors with the expansion were signed in 2007. In addition to project management, Technip (OTC:TKPPY) (Paris, France) is performing engineering and procurement services for the new 180-ton-per-hour solvent deasphalting unit. Technip is also providing the engineering, procurement, and construction (EPC) services for the 45,000-barrel-per-stream-day mild hydrocracking unit, based on Shell Technology.

Lurgi S.A. (Frankfurt, Germany) is constructing and delivering installations to the crude distillation unit. Separately, ABB Limited (NYSE:ABB) (Zurich, Switzerland) has won an EPC contract for the diesel desulfurization unit licensed from Chevron Lummus Global. The unit will help Grupa LOTOS comply with the European Union mandate that diesel oil should contain less than 10 parts per million of sulfur. Other contractors working on the expansion include KTI, Fluor Corporation (NYSE:FLR) (Irving, Texas), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, The Netherlands), KBR, Incorporated (NYSE:KBR) (Houston, Texas), Kellogg Company (NYSE:K) (Battle Creek, Michigan), and Uhde.

The Gdansk Refinery Expansion is expected to support 1,200 to 1,500 jobs during construction. The completion date is set for the fourth quarter of 2010.

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