Shell Begins Additions at Port Dickson Refinery in Malaysia

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Researched by Industrial Info Resources (Sugar Land, Texas)--Last month, Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), along with Fluor Corporation (NYSE:FLR) (Irving, Texas), began construction on two additions at Shell's Port Dickson refinery in Malaysia. Fluor was awarded an engineering and construction contract by Shell last autumn, as a follow-up to its previous front-end engineering and design work.

Fluor will concentrate its efforts on the construction of a new gas oil desulfurization unit that will not only allow the Port Dickson refinery to meet Euro specifications, but also will increase the refinery's desulfurization capacity by 40,000 barrels-per-day (BBL/d). The $100 million unit, scheduled to go into operation in 2013, will also increase sulfur production by reducing sulfur content from 500 parts per million to 50 parts per million in gas oil.

Shell is also adding a new hydrogen unit to provide support to the aforementioned desulfurization unit. The $30 million steam methane reforming unit will have a capacity of 30 million standard cubic feet per day and is scheduled to begin operations at the same time as the desulfurization unit.

The Port Dickson Refinery, located near Kuala Lumpur, has a capacity of 125,000 BBL/d and produces gasoline, liquefied petroleum gas, sulfur and other products. Most of the refinery's products are consumed within Malaysia, although some are exported. Malaysia has six refineries that have a total combined capacity of more than 500,000 BBL/d. Shell's Port Dickson refinery is one of the largest.

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