MIDDLE EAST INDUSTRY BRIEFS

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Researched by Industrial Info Resources (Sugar Land, Texas).

Oil & Gas

Pipeline to Carry 55% of Emirates Oil

Abu Dhabi International Petroleum Investment Company has awarded a contract to China Petroleum Corporation’s two pipeline engineering and construction units to jointly build a 360 kilometer pipeline in the UAE from Habshan oil field to the export terminal at Fujairah. The capacity of the line will be 1.5 barrels per day of crude oil – 55% of Emirates’ production. Thirty three percent of the oil will go to a planned $5 billion refinery and 66% to the export terminal.

Saipem Wins $940 Million Algerian Plant Contract

Saipem has been awarded a contract by Algeria’s Sonatrach for an oil treatment plant at Hassi Messaoud 800 kilometers southeast of Algiers. The company will lead a consortium for the EPC (engineering+procurement+construction) contract of the crude oil treatment and stabilization plant. Saipem will earn about $940 million of the total $1.27 billion project contract which covers three 100,000 bpd trains, one maintenance unit, four 50,000 cubic meter stocking units and a 45 kilometer pipeline transporting oil, water and gas. The project work will cover 37 months.

Metals and Minerals

SNC-Lavalin in JV Abu Dhabi Smelter Services Contract

Canada’s SNC –Lavalin, in a joint venture with Australia’s WorleyParsons, has been awarded the $300 million engineering, procurement and construction management services contract by Emirates Aluminum (Emal) for a new $5 billion aluminum smelter at Taweelah in Abu Dhabi. It will be the largest single-site smelter in the world with a Phase 1 capacity of 700,000 tpa rising to 1.4 million tpa in Phase 2. A 2,000 MW power plant is included in Phase 1. The SNC-L share of the contract will be about $200 million.

Power

Daewoo Bags Two 750 MW Power Plants in Libya

South Korea’s Daewoo Engineering and Construction has won 2 orders worth $787 million to build power plants for the General Electric Company of Libya. The 750 MW, $421 MW plant at Misurata will be completed in June 2010 and the 750 MW, $366 million plant at Benghazi will be completed in July 2010. Daewoo has already secured $10 billion of orders in Libya where an 8% annual growth in power demand is driving project development.

GE Riding Future Power Wave in Saudi

GE Energy has received $2 billion commitments for major power plant projects in Saudi Arabia and expects to add 6,300 MW of power to the country’s grid. To date, GE has installed 350 power generation units in Saudi Arabia representing about 7,800 MW. Consumption has been growing at 7% per annum and is estimated to require 20,000 MW of additional power generation by 2019. Currently, GE Water & Process Technologies is building a 26,400 square feet chemical manufacturing facility with a water treatment laboratory. Total project commitments across GE divisions amount to billions of dollars.

Petroleum Refining

Taylor-Dejongh Advise on $5 Billion Refinery

Bahrain may be the site for a $5 billion oil refinery with a capacity of 200-250,000 bpd. The U.S. company Taylor-Dejongh has been appointed advisers to the project. Kuwaiti Islamic investment company, Adeem Investment, is planning to raise $ 2 billion to finance the project. Other sites are being considered in North Africa, East Africa and Asia. A final decision on location will be made by the end of September.

Foster Wheeler Delayed Coker for Jubail

Foster Wheeler USA has a contract from Aramco Services and Total France for a process design package for a new delayed coker for the 400,000 bpd Jubail Industrial City export refinery in Saudi Arabia. The delayed coker, one of the largest in the world, will use FW’s selective yield delayed coking process (SYDEC) which upgrades heavy, high sulfur residue feed into high value transport fuels with minimum coke yields.

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