Cepsa awards Técnicas Reunidas the EPCM contract for its second-generation biofuels plant in Huelva

Cepsa has awarded Técnicas Reunidas the contract for the detailed engineering of the largest second-generation (2G) biofuels plant in southern Europe, which Cepsa will start up together with Bio-Oils, with an investment of up to 1 billion euros, at the La Rábida Energy Park in Huelva.

The new plant, which will use agricultural waste and used cooking oils as feedstock, will have two pretreatment units and a flexible production capacity of 500,000 tons of renewable diesel and SAF (sustainable aviation fuel) for use in air, sea, and land transport.

Técnicas Reunidas will develop the facility’s engineering, procurement management, and construction management support. Specifically, the scope of the work awarded to Técnicas Reunidas includes the renewable fuels unit (RFU), the amine regeneration unit (ARU), the acid water unit (SWS), and the service generation units, the interconnections, the storage tank farm, and the ship and tanker loading and unloading facilities. 

Técnicas Reunidas will assign a team of more than 180 expert professionals and will dedicate some 500,000 hours of highly qualified personnel to carry out all phases of the engineering and procurement services for equipment and materials for the project, with support for construction management at Cepsa’s request. 

Emilia Arias, Technology Director of Técnicas Reunidas, emphasized that “with this contract, Técnicas Reunidas strengthens its position in the field of the circular economy. These services will contribute to the definition of this emblematic plant, with high technological content. This project is part of the strategy implemented by Técnicas Reunidas to increase the number of service contracts.”

José Manuel Martínez, Cepsa’s Technology Director, said: “We have entrusted this project to Técnicas Reunidas, experts in the engineering of large industrial projects such as the one we will undertake in Huelva, which will be the largest 2G biofuel plant in southern Europe. At this facility, which will feature the latest available technology, we will flexibly produce 500,000 tons of renewable diesel and SAF to decarbonize aviation, maritime, and land transport.”

The sustainable fuels developed in this new plant will reduce 1.5 million tons of CO2 per year, equivalent to 30% of emissions in the province of Huelva. The use of biofuels can reduce CO2 emissions by up to 90% compared to traditional fuels, making them a key element in enabling a fair energy transition and promoting the decarbonization of transportation, especially in sectors where electrification is complex, such as heavy road, air, and maritime transportation.

Source: Técnicas Reunidas

L&T Construction Wins EPC Orders for its Power Transmission & Distribution Business

The Power Transmission & Distribution (PT&D) Business of Larsen & Toubro (L&T) Construction has recently secured EPC orders in India and overseas.

Under the umbrella of the Reforms-based Results-linked Distribution Sector Scheme (RDSS), distribution utilities in the country have taken up various modernization measures to improve operational efficiency and financial sustainability. To significantly reduce the Aggregate Technical & Commercial (AT&C) losses at pan-India level is an important objective of the scheme towards which, the discoms undertake several distribution infrastructure improvements such as segregating feeders, reconductoring, cabling, augmenting line networks and elements, geo-tagging of assets, etc.

The Business has secured orders to develop distribution infrastructure in two discom circles of western Rajasthan.

The Business has also bagged a power supply system order for the second phase of Chennai Metro. The scope includes Design, Supply, Installation and Commissioning of Receiving Substations (RSS), Auxiliary Substations (ASS) and SCADA system for the northern sections of Corridors 3 & 5. The 110kV Gas Insulated Receiving Substations get incoming supply from the Grid and feed power supply to the traction and station requirements. 33kV Auxiliary Substations interconnected through 33kV cable system feed the auxiliary loads of metro stations such as lighting, ventilation, lifts etc. Related Control & Protection systems are also included in the scope.

Further, In the overseas market, the PT&D Business has won an order to supply, construct, test, and commission a 132kV substation in the United Arab Emirates.

Source: Larsen & Toubro

Técnicas Reunidas and FCC in consortium with Entrade GMBH wins the EPC contract to develop a large regasification terminal in Germany

Hanseatic Energy Hub GmbH is developing an import terminal that will contribute to secure Germany’s supply of LNG and green gases while preparing for the market ramp-up of hydrogen. The German company has awarded the design and development of an emission free regasification terminal to a consortium led by Técnicas Reunidas and made up of the Spanish company FCC and Entrade GMBH. 

This is an EPC (Engineering, Procurement and Construction) contract for the execution of a new storage and regasification terminal for liquified gases in the river port of Stade, which is part of the metropolitan region of Hamburg (Germany). 

The land on which the facility will be built belongs to the large chemical company Dow Chemicals, which is participating in the project as one of the development partners. The terminal will utilize Dow’s industrial waste heat and therefore will be able to regasify the gases without additional CO2 emissions.

The new terminal will have a capacity of 13.3 Bm3 nominal per year and will involve a total investment of close to 1,000 million euros, of which approximately 500 million euros will correspond to the scope of Técnicas Reunidas and the other 500 million euros to FCC and Entrade GMBH.

The project has been divided into two phases, a first stage of preliminary works and engineering with a duration of 5 months; and a second stage, that constitutes the main contract, which is subject to HEH Final Investment Decision scheduled for summer 2023.

Técnicas Reunidas will design the regasification terminal and the two storage tanks, each with a capacity of 240,000 cubic meters, and will undertake all the equipment and materials supply work for the project. The project is part of Técnicas Reunidas’ long experience and know-how in the design and development of this type of plants, aimed at optimizing performance and minimizing environmental impact.

FCC has extensive experience in the construction of Liquefied Natural Gas (LNG) tanks and will build the tanks. In addition, it will carry out all site preparation and civil works activities for the plant. The company has designed, built and commissioned several LNG storage plants in Spain, Finland and Chile. Specifically, in Spain, it has executed 8 LNG facilities with a capacity to supply 1.53 million homes thanks to the storage of 1.1 Mm3 LNG.

Entrade GMBH, a subsidiary of ENKA, one of the strongest engineering and construction companies in the world and with work in progress near Stade, will be in charge of the electromechanical assembly activities.

The complete execution of the plant is estimated to take place around 2027 

This terminal is an important element of Germany’s current energy policy, as one of its main objectives is to diversify its natural gas supply with liquefied natural gas (LNG) and green gases while preparing for the market ramp-up of hydrogen.

Hanseatic Energy Hub has stressed that “the hub is a future-flexible modular system for the green energy transition that utilizes the diverse opportunities of the Stade energy region. The terminal, port, industrial park and connecting infrastructure are designed so that a conversion can take place in a modular way”.

Source: Técnicas Reunidas

Valmec Kent JV appointed as the FEED Contractor for the Hunter Valley Hydrogen Hub Project

Valmec Kent JV (VKJV) have been contracted by Origin Energy to deliver FEED for the Hunter Valley Hydrogen Hub (HVHH) Project. The Hunter Valley Hydrogen Hub project is to develop an integrated group of production and distribution assets required to establish a hydrogen hub.

VKJV has the right expertise and experience to deliver the HVHH project through Kent’s technical engineering competency combined with Valmec’s practical construction experience.

Joe McCormick, EVP of Operations APAC from Kent, said: “We are very excited to be awarded this significantly important project that is aligned with our purpose to bring our world the energy it needs in the most responsible way ever imagined. We look forward to working closely with Origin to successfully deliver the Hunter Valley Hydrogen Hub project.”

Steve Dropulich, Managing Director of Valmec, said: “This project is a great opportunity for Valmec and Kent to bring together their collective strengths including significant technical and local expertise to confidently deliver the FEED for this project. We look forward to working collaboratively to make this project a reality and help Origin Energy in helping power a cleaner future for Australia.

Kent, a leading engineering company in conventional and renewable energy including Hydrogen (H2) technologies, along with Valmec, a leading multi-discipline services group providing full asset lifecycle solutions, have been appointed as the FEED contractors for the Origin Energy led Hunter Valley Hydrogen Hub project in Newcastle, Australia.

The Valmec Kent JV provides a compelling delivery solution for Origin Energy’s needs. Both organisations have the right mix of technical engineering competency combined with practical construction experience. Valmec and Kent’s combined organisations’ experience covers all phases of project delivery, concept selection through EPC execution, in hydrogen and gas facilities, pipelines, terminals, and water treatment – all relevant to the scope of the Hunter Valley Hydrogen Hub.

It is intended that the project will be executed across 2 stages: Stage 1 being a FEED and Stage 2 being project execution through EPC.

Subject to the Client’s Final Investment Decision (FID) following FEED, Stage 2 is scheduled to commence in late 2023 with overall project completion planned for late 2025.

Source: Kent

Qatarenergy Selects Sinopec As North Field East (NFE) Expansion Partner

QatarEnergy has announced the signing of a definitive partnership agreement with China Petrochemical Corporation (Sinopec) for the North Field East (NFE) expansion project, the largest project in the history of the LNG industry. The agreement was signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Dr. MA Yong-sheng, the Chairman of Sinopec in a special signing ceremony held today at QatarEnergy’s headquarters and attended by senior executives from both companies.

The agreement marks the entry of Sinopec as a shareholder in one of the NFE joint venture companies that own the NFE project, one of the most critical projects in the global LNG industry. Pursuant to the terms of the agreement, QatarEnergy will transfer to Sinopec a 5% interest in the equivalent of one NFE train with a capacity of 8 million tons per annum (MTPA). This agreement will not affect the participating interests of any of the other shareholders.

Speaking at the signing ceremony, His Excellency Al-Kaabi said: “The People’s Republic of China is a major driver of the global energy markets as well as being one of the most important gas markets in the world and is a key market for Qatari energy products. Today’s event underscores QatarEnergy’s commitment to deepening its relationships with key LNG consumers while prioritizing long-term strategic partnerships and alignment with world-class partners from China, represented by Sinopec here today.” Noting the November 2022 agreement to supply Sinopec with 4 MTPA of LNG from the NFE project, His Excellency Minister Al-Kaabi said: “That agreement was not only the first NFE LNG supply agreement to be announced, but also the longest LNG supply agreement in the history of the industry.

Sinopec will join Qatar’s LNG family becoming the first Asian shareholder in the NFE project.”Minister Al-Kaabi concluded his remarks by saying: “We are pleased to enter into this milestone agreement with Sinopec, marking yet another landmark in the excellent bilateral relations between the People’s Republic of China and the State of Qatar. I would like to thank the working teams in QatarEnergy and Sinopec for their dedicated work to reach this important agreement. We are always indebted to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani, and to his continued guidance and support of the energy sector.”On his part, Dr. Ma Yongsheng, the Chairman of Sinopec, congratulated both parties on signing the NFE project partnership agreement and said: “The meeting between Chinese President Xi Jinping and Qatar’s Amir His Highness Sheikh Tamim bin Hamad Al Thani during the first China-Arab Summit and China-GCC Summit in 2022, comprehensively outlined the development blueprint of the strategic partnership between the two countries and guided the China-Qatar energy cooperation.

The signing of this agreement today is a concrete move to carry forward what has been agreed between the two heads of state and deepen the partnership between Sinopec and QatarEnergy. It is another milestone after the signing of the long-term LNG SPA from the NFE project in November 2022, marking the integrated cooperation achieved by both companies on the NFE project.”Dr. Ma further added that “China-Qatar energy cooperation features a natural complementarity. QatarEnergy is a leading LNG producer in the world and one of the most important partners of Sinopec.

The cooperation with QatarEnergy will help Sinopec further optimize China’s energy consumption structure and enhance the security, stability, and reliability of clean energy supply. I hope that the two companies will continue to explore new LNG cooperation opportunities based on the solid foundation we have laid together and will further expand cooperation areas to achieve mutual benefit and win-win results.”This agreement is the first of its kind after last year’s series of partnership announcements in the $28.75 billion NFE project, which will raise Qatar’s LNG export capacity from the current 77 MTPA to 110 MTPA.

Source: QatarEnergy

L&T Wins L-EPC Order for its Hydrocarbon Business

The Hydrocarbon Business (L&T Energy Hydrocarbon – LTEH) of Larsen & Toubro (L&T) has recently secured an order under its AdVENT (Advanced Value Engineering and Technology) business vertical.

The order is for license plus engineering, procurement and construction (L – EPC) of a Technical Ammonium Nitrate (TAN) plant along with Weak Nitric Acid (WNA) plant at Gadepan, Kota, Rajasthan from Chambal Fertilisers and Chemicals Limited (CFCL), a leading fertilizer company in India.

The TAN and WNA plants, having capacities of approximately 240,000 Metric Tons (MT) p.a. and 2,10,000 MT p.a. respectively, will be built under a technology license from CASALE S.A., a privately owned Swiss Company headquartered in Lugano, Switzerland.

Organised under Offshore, Onshore, Construction Services, Modular Fabrication and AdVENT & Asset Management verticals, LTEH offers integrated design-to-build solutions across the hydrocarbon sector to domestic and international customers. With over three decades of rich experience, the Business has been setting global benchmarks in all aspects of project management, corporate governance, quality, HSE and operational excellence.

Source: Larsen and Toubro

Technip Energies Awarded a Significant Contract for the Electric-Driven Xi’An LNG Project in China

Technip Energies has been awarded a significant contract by Shaanxi LNG Reserves & Logistics Co. Ltd. for the 3 million normal cubic meters per day Xi’An LNG Emergency Reserve & Peak Regulation Project in China.

The contract covers the Process Design Package (PDP), Front-End Engineering and Design (FEED), and supply of key equipment of a single 0.8 MTPA LNG train. It also covers technical services for construction, commissioning, start-up and performance testing.

The plant will utilize AP-SMR™ liquefaction technology which is well suited for mid-scale LNG and will be all-electric motor-driven with the aim of reducing emissions. It will be the largest liquefaction unit in the world using a single electric motor-driven mixed refrigerant compressor, hence being a reference in terms of low-carbon LNG production.

Loic Chapuis, SVP Gas & Low-carbon Energies of Technip Energies, commented: “We are pleased to have been one more time entrusted by Shaanxi Yanchang Petroleum Group and Shaanxi Gas Group following the successful Yangling LNG project awarded in 2012. This award strengthens our positioning in the mid-scale LNG market in China. By being all-electric motor-driven, this LNG plant will be a reference for low-carbon LNGin the industry and we are committed to bringing our leadership in LNG and best-in-class execution to support our client in this important project.”

Source: Technip Energies

KBR Awarded Front End Engineering Design Contract for Equinor Bay du Nord FPSO Project

KBR announced that its Canadian entity, KBR Industrial Canada Co., has received a Letter of Intent (LOI) from Equinor Canada for the front-end engineering design (FEED) of the topside facilities of the new Bay Du Nord floating production, storage, and offloading facility (FPSO) to be located offshore Newfoundland, Canada.

The agreement also includes an option for continuation of detailed design and procurement management services through to final completion of the FPSO. The FEED scope comes on the back of the pre-FEED engineering carried out by KBR in 2022 and will further mature the engineering and execution planning, working towards a final investment decision with first production expected to be in the late 2020s.

During the FEED engineering, KBR will continue to help Equinor develop one of the lowest carbon emitting FPSO’s in the world, using an onboard combined cycle power system and the latest technology to minimize the number of crew onboard and maximize digital solutions. All these elements will produce energy safely and securely while minimizing carbon emissions.

KBR will execute the work scope jointly with Canadian sub-contractor Hatch Ltd., an employee-owned multidisciplinary engineering, project management, and professional services firm with a local office in St. John’s, Canada, and will provide Equinor with an integrated team across Canada and London.

The Bay du Nord FPSO is a deep-water facility utilizing industry leading technology and digital solutions to ensure safe and reliable production. This award builds upon KBR’s unrivalled knowledge and expertise in this arena.

“We are excited to be a part of this significant project with Equinor,” said Jay Ibrahim, president of KBR’s Sustainable Technology Solutions business. “This win is indicative of KBR’s strategic commitment to work with clients not only to secure energy supply for the world but to do it in a safe, responsible, and sustainable way. KBR adds maximum value to clients such as Equinor, by drawing on our extensive global engineering expertise and applying the latest technology and processes to deliver extraordinary outcomes.”

Source: KBR

Saipem has been awarded new offshore EPCI contracts and competitive FEED contracts worth 650 million USD

Saipem has been awarded three new offshore contracts and two competitive FEED contracts totalling approximately 650 million USD.

The first contract has been assigned by Azule Energy for the Agogo Full Field Development project, a deepwater greenfield development, approximately 180 kilometres offshore Angola, about 20 kilometres west of the N’Goma FPSO (West Hub), which has been in operation since November 2014. The contract encompasses the Engineering, Procurement, Construction and Installation (EPCI) of rigid Pipe-In-Pipe flowlines with associated subsea structures. Saipem will mobilize its state-of-art offshore installation vessel FDS2.

The second contract has been awarded by EnQuest for the decommissioning of existing infrastructures in the Heather oil field, located in the UK sector of the North Sea, around 460 kilometres northeast of Aberdeen. Saipem’s activities entail the engineering, preparation, removal and disposal of the upper jacket of the Heather platform, utilising the semisubmersible crane vessel Saipem 7000.

The third contract has been awarded under the Aramco LTA program in Saudi Arabia. Saipem will execute the offshore EPCI of one platform topside and the associated subsea flexible, umbilical and cable system.

Furthermore, Saipem has been awarded two Front-End Engineering Design (FEED) Competition contracts for gas development projects. The first one, assigned by Shell Trinidad & Tobago Ltd., is related to the development of the Manatee natural gas field. The second contract has been assigned to Saipem, in partnership with PT Tripatra Engineers and Constructors and Daewoo Engineering & Construction Co. Ltd., by PAPUA LNG Development Pte. Ltd. It concerns the development of the upstream facilities to feed the natural gas PAPUA LNG project in Papua New Guinea.

These important contracts further consolidate the positioning of Saipem both geographically and in key segments for the offshore business, in particular in decommissioning where the company boasts an important track record. In addition, these awards leverage on Saipem’s combination of its unique assets and expertise in competitive FEEDs that allow for the presentation of effective offers and safe and innovative solutions.

Source: Saipem

Yara and Enbridge plan to develop and construct a $2.9 billion blue ammonia plant in Texas

Yara Clean Ammonia, Yara International ASA company, and Enbridge Inc are pleased to announce the signing of a letter of intent to jointly develop and construct a world-scale low-carbon blue ammonia production facility as equal partners. The proposed facility, which includes autothermal reforming with carbon capture, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas.

Once operational, the production facility will be capable of supplying low-carbon ammonia to meet growing global demand, with an expected capacity of 1.2–1.4 million tons per annum. Approximately 95 percent of the carbon dioxide (CO2) generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage. If confirmed through the Front-end Engineering Design (FEED) phase and approved, total project investment is expected in the range of US$2.6–US$2.9 billion, with production start-up in 2027/2028.

Enbridge and Yara will utilize their complementary strengths to develop and execute the project. Yara’s industry-leading experience in ammonia development, production, operations and distribution, combined with Enbridge’s large-scale infrastructure development expertise and world-class EIEC deep water docks and export platform, will be critical to advancing the project from development through to commercial operation. In addition, Yara, the world’s largest ammonia distributor, is expected to contract full offtake from the facility, which further enhances the strategic value and commercial viability of the project.

Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration hub which is a potential destination for the project’s captured CO2.

The construction of any facilities will be subject to receipt of all necessary regulatory approvals.

“We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in global ammonia projects, operations and distribution,” said Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines. “EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture and solar self-power.”

“Yara is pleased to be joining Enbridge in developing this significant clean ammonia project. As presented at our Capital Markets Day, we are working systematically to develop project opportunities in the U.S. and this project will significantly contribute to our strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier,” said Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

Source: Yara