Nextchem (Maire Tecnimont Group) and Acciaierie D’Italia agree on a feasibility study to decarbonize Taranto steel plant

Maire Tecnimont S.p.A.’s subsidiary NextChem and Acciaierie d’Italia, Italy’s largest steel company, jointly owned by Arcelor Mittal and Invitalia, have reached an agreement for a feasibility study to use circular gas (syngas) in the Taranto steel mill. This circular gas is obtained thanks to NextChem’s Waste-to-Chemical technology, which is based on the recovery of carbon and hydrogen included in plastic and dry waste through a partial oxidation process.  

NextChem’s technology makes it possible to obtain a circular gas that can be used both in refining processes and in the steel production cycle – replacing coal dust in the blast furnace or natural gas in direct reduction – resulting in a decrease of CO2 emissions. The feasibility study will focus on the environmental benefits of using circular gas in the steel mill, as well as of maximizing the steel mill tail gas. 

Both solutions could contribute to significantly reducing the environmental impact of the steel production cycle.

Pierroberto Folgiero, CEO of Maire Tecnimont Group and NextChem, commented: “We are proud to collaborate with Acciaierie d’Italia in the development of a project that can offer a concrete solution for the decarbonization of the steel processing cycle and production. NextChem’s Waste-to-Chemical technology, which is worksite-ready, can make a strong contribution to the green reconversion of traditional industrial sites”.

Lucia Morselli, Chief Executive of Acciaierie d’Italia, said: “Contributing to the energy transition is exactly the responsibility of every company. NextChem’s circular gas technology is of great interest to Acciaierie d’Italia because, once verified, it goes in the direction of decarbonizing our plants”.

Source: Maire Tecnimont

McDermott Awarded FEED Contract for Waste Tire Recycling Project

McDermott International, Ltd announced it has been awarded a Front-End Engineering Design (FEED) contract from the Michelin Group in France for an innovative waste tire technology enabling large-scale production of recycled carbon black—a key ingredient in advancing the next generation of sustainable tires. This award follows a similar FEED announcement in April, which is focusing on the production of regenerated styrene to make synthetic rubber for tires.

Incorporating Scandinavian Enviro Systems’ licensed pyrolysis process, a technology that separates bulky waste into raw materials for repeated production, the implementation of this waste-to-value solution further advances Michelin’s commitment to building a circular economy and increasing the demand—and availability—of sustainable materials.

“The Michelin Group is pioneering advancements in waste recycling technology and has once again selected McDermott to help advance the next generation of sustainable tires,” said Samik Mukherjee, Executive Vice President and Chief Operating Officer. “This latest contract award strengthens our shared vision for a more sustainable future and solidifies our long-standing relationship.”

McDermott has worked with Michelin since 2008 at varying stages of production, from design to start up.

“With a focus on new energy opportunities and more sustainable industrial processes, we are harnessing our extensive engineering and project delivery expertise to support Michelin’s vision for a sustainable future,” said Tareq Kawash, Senior Vice President, Europe, Middle East, Africa.

The project will be executed from McDermott’s office in Brno, Czech Republic. Work will begin immediately and is expected to be completed in first quarter 2022.

Source: McDermott International

JGC awarded Pre-FEED Contract for first FLNG facility in Nigeria

JGC Holdings Corporation announced that JGC Corporation (Representative Director and President Yutaka Yamazaki), which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been awarded the Pre-Front End Engineering and Design (Pre-FEED) contract for an FLNG (FLNG: floating liquified natural gas) facility project in the Federal Republic of Nigeria as planned by UTM Offshore Limited, a local private company engaged primarily in crude oil sales and construction equipment leasing, and the Nigerian National Petroleum Corporation.

This project calls for the Pre-FEED of a FLNG facility with a production capacity of 1,200,000 tons annually using gas from the Yoho Gas Field owned by ExxonMobil and the Nigerian National Petroleum Corporation. After the completion of the Pre-FEED, FEED and EPC phases are planned. This will be the first FLNG facility in Nigeria and is a milestone project.

There are numerous undeveloped small-scale offshore oil and gas fields not only in Nigeria but also in other African countries, with various projects planned including FLNG plants. JGC Corporation is currently executing the EPC of two FLNG facilities: for PETRONAS in Malaysia, and for Coral FLNG SA in Mozambique. Through the awarded project, we aim to expand our business into the African region, which is expected to grow in the future, and contribute to the further development of industry and infrastructure.


JGC Awarded FEED Contract for Gas Separation Plant in Kazakhstan

JGC Holdings Corporation (Representative Director, Chairman and CEO Masayuki Sato) announced that JGC Corporation (Representative Director and President Yutaka Yamazaki), which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, was in December 2020 awarded the Front End Engineering and Design (FEED) contract for a gas separation plant construction project in the Republic of Kazakhstan being planned by KazMunayGas, Kazakhstan’s state-owned oil company, and its subsidiary, KLPE.

This project calls for KLPE to construct a gas separation plant with a capacity of 957 MMSCF per day adjacent to a plant that is run by Tengiz Oilfield development company Tengizchevroil (a joint venture of ExxonMobil, Chevron, KazMunayGas and others). The separated ethane is to be supplied as the raw material for a further planned plant for manufacturing polyethylene.

The selection of JGC as contractor for this project is believed to reflect the clients’ strong positive evaluation of JGC Corporation’s track record of involvement in gas processing plants worldwide, as well as its successful delivery of a project to modernize the Atyrau oil refinery for KazMunayGas completed in 2006.

Amid the accelerating worldwide trend toward low carbon and decarbonization, natural gas, which among fossil energy sources has a low environmental impact, is expected to experience an expansion in demand in the future as a primary energy source and as a raw material for gas chemicals.

Through to the present time, the JGC Group has been involved in 30 or more gas processing plant construction projects worldwide, and it will continue to proactively develop its sales activities as a world-leading engineering company in the field of gas processing.


Saipem awarded a FEED contract for Virginia Gas Project in South Africa

The contract concerns the development of an LNG plant with the production of liquefied Helium

Saipem has been awarded a Front-End Engineering Design (FEED) contract by Renergen, a South African emerging integrated renewable energy company, through its 100% controlled subsidiary Tetra4. The contract concerns the downstream development of the Virginia Gas phase 2 Project in South Africa where Saipem established a branch in 2018 located in Johannesburg.

Saipem’s contract encompasses the design of the facilities that will allow to produce LNG and liquefied Helium. Saipem will design the natural gas purification section, the gas liquefaction section using its proprietary technology LiqueflexTM-N2, the products storages and off-loading, and the associated utilities.

The Virginia Gas Project comprises exploration and production rights of 187 000 ha of gas fields across Welkom, Virginia, and Theunissen in the Free State. The fields contain one of the richest Helium concentrations logged internationally. Liquid Helium will be exported abroad while LNG will be used in South Africa, providing a competitive and cleaner energy source to the country.

Eric Zielinski, Upstream & LNG Product Manager of XSIGHT, Saipem’s division dedicated to project definition engineering services, commented: “Through this contract Saipem further extends its presence in South Africa and is involved in an exciting, world-class development project. The FEED contract specifications for Virginia Gas Project fully fit within our strategy of diversification providing innovative ideas for the new energy movement, enabling carbon footprint reductions, and helping to produce a rare and valuable commodity such as helium. The technologies developed by Saipem for small to mid-scale natural gas liquefaction plants fully fit for this application, thanks to their flexibility and robustness.


Sumitomo Corporation and JGC Holdings Corporation signed a FEED Contract for Hydrogen Production Plant in Australia

Sumitomo Corporation and JGC Holdings Corporation announced that Sumitomo Corporation and JGC Holdings Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, have signed a Front End Engineering and Design (FEED) contract for the hydrogen-related project planned by Sumitomo Corporation in Gladstone, Australia.

The Australian Government’s National Hydrogen Strategy, formulated in 2019, sets out a vision of becoming a major global player by 2030, and the Australian Government is presently working to create a national hydrogen industry.
The City of Gladstone, which is located in the State of Queensland, is attracting attention as a suitable location for hydrogen production and consumption. This is due to its existing industrial infrastructure, with government’s initiative on climate change, and having the potential to decarbonise existing sectors such as industry, mobility, ports etc. It also has rich solar radiation with long daylight hours, which leads to the Green Hydrogen production site.

This project is part of a broader program that aims long term to build local hydrogen production and consumption in Gladstone by producing hydrogen from electrolysis of water using electricity from Solar PV as the main power source. The initial hydrogen production plant plans to produce 250-300 tonnes of hydrogen annually, with plans to scale up production.

In addition to producing hydrogen at the initial plant, we are in parallel creating hydrogen demand in this region.

Sumitomo Corporation expects hydrogen to be one of the important energies in the future and promotes hydrogen-related business such as Local Production and Consumption projects and Large Scale Value Chain projects, that utilises the regional requirements of energy and the characteristics of hydrogen.

In order to greatly contribute to the achievement of our long-term goals toward climate change mitigation, “Carbon neutralisation in 2050” and “Realisation of a sustainable energy cycle”, we will accelerate our efforts for the materialisation of a hydrogen society by promoting hydrogen-related businesses.

As one of the key issues (materiality) to be addressed as a corporate group, the JGC Group is making extensive efforts to expand the use of hydrogen energy, which is expected to be an energy source that does not emit CO2 when burned, and ammonia, which is expected to be one of the most promising hydrogen energy carriers* in hydrogen transportation, where there are issues from an economic and safety perspective.

In October 2018, in collaboration with the National Institute of Advanced Industrial Science and Technology (AIST), we became the first in the world to successfully synthesise ammonia from hydrogen produced by electrolysis of water using renewable energy sources and to generate electricity from gas turbines fueled by the synthesised ammonia, and we are currently collaborating with other companies to explore fuel ammonia production projects overseas.

In addition, we are proposing a hydrogen production system that will produce hydrogen from synthetic gas made from waste plastics, in order to continue to contribute to the realisation of a hydrogen society in Japan and abroad.

  • Hydrogen energy carriers

A method of efficiently storing and transporting hydrogen, which is inefficient in its gaseous form for storage and long-distance transport, by converting it into a liquid or hydrogen compound.


Samsung Engineering receives $ 1.07 billion contract for the Sarawak Methanol Project in Malaysia

Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, announced that it received an LOI(Letter Of Intent) for a $ 1.07 billion contract from Sarawak Petchem Sdn Bhd (Sarawak Petchem), building a methanol plant in Sarawak, Malaysia. 

Samsung Engineering will build a 5,000 ton-day methanol production facility in Bintulu, Sarawak, eastern Malaysia. Samsung Engineering won the contract for the FEED (Front End Engineering Design) from Sarawak Petchem in April 2019 and the first Early Work contract in November 2019.

Samsung Engineering executed the Sarawak Petchem Methanol Plant Project from a feasibility study, FEED contract, Early Work phase, to a Licensor, Engineering, Procurement, Construction and Commissioning (LEPCC) contract with this LOI, effective from late January 2021. The plant will use Air Liquide’s technology and is expected completion in late 2023.

Samsung Engineering’s excellent FEED execution lead to the award for this EPC contract.
Samsung contract strategy, based on technology and digital transformation (DT), investing into FEED project implementation for the past several years, comes into fruition with the Sarawak Petchem Methanol Plant Project.

Moreover, Samsung Engineering has the opportunity to develop the market in Sarawak, which has large gas reserves in Malaysia, and therefore can create a promising position for future projects in the region.

Samsung Engineering’s President & CEO Sungan Choi stated, “We were able to receive this landmark project from Sarawak Petchem, by showing our exceptional engineering capabilities and commitment made during the FEED stage. Samsung Engineering has an excellent track record for petrochemical plants and in Malaysia, which will insure optimal project execution, while earning the trust of the client for many future joint projects to come.”

In addition to the Sarawak project in Malaysia, the $ 3.6 billion Mexico Dos Bocas refinery project, which also started with Samsung Engineering’s FEED strategy, was also recently awarded as a full EPC last month.

Samsung Engineering has set a target to spurring orders for new businesses based on FEED along with DT and technology advancements. Samsung plans to improve its constitution with customized marketing strategies for existing and new clients globally.


Saipem: a contract awarded for Ichthys LNG FEED Services

Saipem confirms a contract award to conduct booster compression module (BCM) front end engineering and design (FEED) services for the INPEX-operated Ichthys LNG energy development.

It is planned to install the BCM onto the Ichthys Explorer central processing facility. The scope of work comprises the BCM front end engineering and includes the option to provide a lump sum price to execute the full EPC scope from detailed design through to fabrication and load-out. Saipem E&C Offshore Area Manager North Pacific/East Indian Ocean Gianalberto Secchi said “This contract furthers our sustainable presence in this strategic market”.



Fluor Awarded Front-End Engineering and Design Contract for California Resources Corporation Carbon Capture Project

 Fluor Corporation announced that it was awarded a front-end engineering and design (FEED) contract for California Resources Corporation’s (CRC) carbon capture and sequestration project, Cal Capture, at the 550-megawatt, natural gas-powered Elk Hills Power Plant in Tupman, California. The FEED is being funded by the U.S. Department of Energy (DOE) through collaboration with the Electric Power Research Institute (EPRI) as part of a larger initiative to advance carbon capture technology development.

“Fluor’s commitment to helping clients achieve their clean energy goals continues with this recent award from CRC,” said Mark Fields, group president of Fluor’s Energy & Chemicals business. “We are honored to be selected by CRC to help them design and permit California’s first carbon capture and sequestration system.”

Fluor’s scope of work is as the licensor providing engineering services for the plant’s licensed process unit and required utility systems using its proprietary Econamine FG PlusSM carbon capture technology which is an energy-efficient and cost-effective process for the removal of carbondioxide from flue gas streams. The process will incorporate Fluor’s advanced solvent formulation together with a number of patented energy savings features.

The execution of the project is a collaborative effort between EPRI, CRC and Fluor. The DOE award was made to EPRI, which has led the interface with the DOE. CRC is providing the project oversight and defining the basis of the FEED.

“CRC has four 2030 sustainability goals that align with those of the State of California. Our carbon goal is to design and permit a carbon dioxide (CO2) capture and storage system – the Cal Capture project – at our Elk Hills Power Plant with associated CO2 injection for enhanced recovery and sequestration at the adjacent Elk Hills oil field,” said Shawn Kerns, CRC executive vice president of Operations and Engineering. “The Cal Capture project offers multiple benefits including substantial emissions reductions, substantial positive economic impacts across the California economy and the development of a key technology needed worldwide to meet future energy transition targets.”

Source: Fluor Corporation

Oman Lng Projects petropipe

Baker Hughes secured EPC contract for Oman LNG project

Oman Liquefied Natural Gas LLC, awarded the project related to Engineering, Procurement and Construction (EPC) for the turbo-machinery scope of its debottlenecking project. The project has been awarded to international energy firm, Baker Hughes.

Under the terms of the deal, Baker Hughes will supply the new helper motors, variable-frequency drives and deliver the engineering, procurement and construction (EPC) for the said project scope.

Once the project completed, Oman LNG production capacity will be increased to 10 per cent equivalent to 11.4 million metric tonnes per annum (MMTA)

Debottlenecking is the process of highlighting specific areas in production trains, machinery equipment or the workflow configuration that would limit or constrain the flow of product inside the plant.

By optimizing plant operations, overall capacity can be raised further. The debottlenecking project comes as part of Oman LNG’s far-sighted strategic projects that will boost its efficiency.

Front-end engineering design (FEED) for the project completed in 2019 and awarded to Baker Hughes in Q4 2019.

The project will be executed over the next two years.  The first train completion by the end of 2020, followed by the second LNG train in 2021, and the third LNG train by 2022.



Al-Zour Refinery Consultancy Services tender issued by Kuwait

As per the notification, KIPIC intends to appoint a professional Contractor who will provide Consultancy for Project Engineering and Management Services for various projects at Al-Zour Refinery, Petrochemical Complex, LNG Import Facilities and other facilities belonging to Kuwait Integrated Petroleum Industries Company (KIPIC).

From time to time, the Contractor’s services may also be required to handle certain assignments of other Kuwait Petroleum Corporation (KPC) subsidiaries.

One of the major Services considered under the Contract is development of FEED and PMC Services for EPC for the Al-Zour Refinery Project (ZOR) Upgrade Project.

ZOR Upgrade Project is essentially a part of the expansion in local refining capacity and covers the requirement under ZOR Refinery.

The Project is currently under feasibility stage and in the event that the KIPIC decides to include the required services under the Scope of Services of the Contract, the feasibility report will be provided to the Contractor for the development of PMP.

The categories of Services to be provided by the Contractor shall includes the following:

  • Services Management
  • Engineering Services, including Sub-Contractor Services
  • Project and Construction Management Services
  • Technical Assistance Services outside Kuwait / outside Contractor’s office locations
  • Deputation of Contractor’s Personnel

The Contract Period will be mobilization Period (maximum of three months) plus seventy-two (72) Months starting from the Start Date of the Contract

KIPIC sets the tender fee as KWD 10,000 ($32,900). At present bid submission date is 03 May 2020.




Schlumberger announced an award to Subsea Integration Alliance of an exclusive contract by Equinor for the front-end engineering design (FEED) on its Bacalhau (formerly Carcará) project offshore Brazil. The contract scope brings together field development planning, project delivery and total life cycle solutions under an extensive technology and services portfolio. 

The contract is based on a two-step award. The FEED and pre-investment are starting now, with an option for the execution phase under a lump-sum turnkey setup that includes engineering, procurement, construction and installation for the entire subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) scope. Option for the contract is subject to Equinor’s planned investment decision for the Bacalhau project in late 2020. The field development will include 19 wells. Furthermore, Subsea Integration Alliance will also be responsible for life-of-field support, representing a fully integrated contract model across the entire field life cycle, from engineering and early engagement to aftermarket services.

We are extremely pleased that Subsea Integration Alliance has been awarded the FEED contract for the Bacalhau project,” said Henning Berg, CEO, Subsea Integration Alliance LLC. “The award comes on the back of a design competition where we have demonstrated our ability to maximize asset value through our integrated field development service. This involves dynamically connecting reservoir, production and economic models with well, subsea infrastructure and topside facilities in a single, collaborative environment using the Subsea Planner* collaborative field development solution. Through its tools and methodologies, Subsea Integration Alliance helps uncover the true value of an asset while seamlessly unifying planning and execution.”

“The award to Subsea Integration Alliance of the FEED contract for the Bacalhau project exemplifies our commitment to in-country value for Brazil, enabling regional efficiency and performance while increasing local content and alignment with Equinor’s strategic priorities,” said Don Sweet, president, OneSubsea.

The Bacalhau Field has located 185 km from the coast of the municipality of Ilhabela/SP, in the state of São Paulo, in a water depth of 2,050 m. Bacalhau is Brazil’s first integrated SPS and SURF project. The award is a significant endorsement of Subsea Integration Alliance’s strong position within the integrated market, our long-established local presence in Brazil and a commitment to support Equinor’s strategy of long-term growth in the region.