Técnicas Reunidas & Sinopec awarded two contracts worth $3.3 billion by Saudi Aramco



Saudi Aramco, one of the world’s largest energy companies, has awarded a joint venture formed by the Spanish company Técnicas Reunidas and the Chinese Sinopec Engineering Group the development of new Natural Gas Liquids (NGL) fractionation facilities in Saudi Arabia. The works will be developed on the basis of two EPC (engineering, procurement and construction) contracts for the execution of Riyas NGL Fractionation Trains (Package 1) and Riyas NGL Common Facilities (Package 2), which includes utilities, storage, and export facilities. Total investment arising from these two contracts amounts to more than 3.3 billion USD. Since the joint venture is 65% owned by Técnicas Reunidas and 35% by Sinopec Engineering Group, the Spanish company is entitled to more than 2.15 billion USD of this total amount.

Function of the new facilities

The primary objective of the project is to enable the fractionation of NGLs, thus producing ethane, propane, butane, and pentane.

Scope of the contracts

The new facilities to be developed by Técnicas Reunidas and Sinopec Engineering Group will fractionate 510 thousand barrels per day (MBD) of NGLs. The two trains of the Package 1 will process 255 MBD each, and will include fractionation, treatment, dehydration and refrigeration units. The common facilities of Package 2 will provide feed and product surge storage, chemicals storage and utilities including, although not limited to, steam and condensate recovery systems, utility water, plant, instrument air and nitrogen systems, machinery cooling water, drainage and flare systems. The expected duration of the project is about 46 months for Package 1 and about 41 months for Package 2, with a total maximum level of 575 engineers, of which more than 70% will be from Técnicas Reunidas.

Source: Técnicas Reunidas



Técnicas Reunidas and Allied Methanol have signed an agreement to develop an integrated methanol and blue ammonia plant in Australia

Técnicas Reunidas S.A. and Allied Methanol Pty. Ltd. have signed an agreement to develop an integrated methanol and blue ammonia production plant in Darwin, in the Northern Territory, Australia. 

The plant configuration will enable carbon emissions to be reduced by half compared to traditional technologies. 

The agreement contemplates that Técnicas Reunidas will carry out the front-end engineering design (FEED) of the plant in the coming months, once the corresponding financing has been obtained. 

The development of the FEED, would put Técnicas Reunidas in a good position to continue with the following phases of the project execution, which includes detailed engineering, equipment and materials procurement and construction management.

Full execution of the project will be subject to the outcome of the FEED and the subsequent securing of the necessary financing and permits from Allied Methanol. The project will involve an investment of USD 800 million. 

The methanol and blue ammonia plants will use Haldor Topsoe technology and will have a name plate capacity of 1350 and 415 tons per day, respectively.  The plant is scheduled for commissioning in 2026.

The plant configuration will enable carbon emissions to be reduced by half compared to traditional technologies.

Methanol is an essential ingredient to produce hundreds of everyday consumer items. It is a clean and cost-competitive alternative to fuels. The main current application of blue ammonia is in the fertilizer industry, and it is expected to be used in shipping as a net zero- emission fuel alternative.

This project further consolidates Técnicas Reunidas’ commitment to establish itself as a global leader in energy transition markets, especially in relation to the hydrogen value chain, circular economy, bioproducts, carbon capture and recovery of critical materials.

Source: Técnicas Reunidas

Técnicas Reunidas secures an engineering contract for a power station with carbon capture in the UK

SSE Thermal (SSE), a division of SSE plc, and Equinor have awarded a contract for the development of its new low-carbon power station located in Peterhead, Scotland. The contract has been awarded to a consortium of Worley, Mitsubishi Heavy Industries Engineering, Mitsubishi Power and Técnicas Reunidas (“the Consortium”).

The project will involve the commercial application of state-of-the-art natural gas-fired power generation technology integrated with carbon capture, removing up to 1.5 million tonnes of CO2 emissions every year. In addition to generating up to 910 MWe of electricity, the plant will provide the necessary back-up to cover the intermittency of renewable energies and thus maximize their penetration. The captured carbon will be stored in wells in the North Sea.

The new power station will be the first of its kind in Scotland and will connect to the Scottish Cluster’s CO2 transport and storage infrastructure, which supports the UK’s target of net-zero emissions by 2050.

Técnicas Reunidas, which has been selected as “FEED Contractor”, will be part of a business consortium called MWT, also formed by Mitsubishi Heavy Industries Eng., Mitsubishi Power and Worley.

The facility will contribute to meeting the UK’s decarbonization targets by neutralizing emissions from a combined cycle powered by natural gas, an essential fuel in the energy transition process. It is also one of the most important projects designed to promote the sustainable development of Scotland industrial clusters TR specialized engineers will participate in its development, working from the advanced center for engineering and technology in the energy industry that Técnicas Reunidas has in Madrid.

Additionally, TR experience in the UK market will be of paramount importance to the project and our teams in UK will contribute to the UK´s sustainability targets while boosting Aberdeen and Scottish local and UK national economies.

Source: Tecnicas Reunidas

INEOS awards Técnicas Reunidas the execution of a world scale ethylene plant in Europe

INEOS, the world’s leading private chemical company, has awarded Técnicas Reunidas a contract for the project management, engineering, procurement and construction management and supervision services for a world scale ethylene plant in Europe. 

The facility, to be built in the Belgian port of Antwerp, will have a production capacity of 1.5 million tons per year. Start-up of the facility is expected in 2026. 

Ethylene is a raw material needed for products that are used in wind power plants, solar panels, medical equipment (blood bags, sterile containers, magnetic resonance scanners, etc.), long-life construction materials, textile products and lightweight components for vehicles, among other applications. 

INEOS will invest 3,000 – 4,000 million euros in this project. It will be the largest capital investment made by the European chemical sector in the last 20 years. 

The advanced technology applied in its development will make it the most energy-efficient and environmentally sustainable facility of its kind in Europe. 

For the development of the project, the company will mobilize a highly qualified team that will reach a peak of 450 professionals in Madrid, composed of process engineers and chemical engineers, among other specialties. 

In addition, Técnicas Reunidas will mobilize a peak of 225 professionals for construction supervision to the Antwerp site and also to the center where the construction of the large-scale modules, designed by Técnicas Reunidas, will be carried out. 

Técnicas Reunidas will promote, as it does in all its projects, the involvement of Spanish companies in their execution, confirming the dragging effect it exerts on the country’s industrial fabric. 

This project is a milestone in the European chemical sector due to its size, its advanced technology and its contribution to the energy transition, Técnicas Reunidas appointment confirms the company as a center of excellence in engineering in the world. 

Source: Técnicas Reunidas

Técnicas Reunidas and Wison Engineering joint venture has won a new contract from QatarEnergy for more than 600 million USD

QatarEnergy has awarded the contract “NFXP Sulfur Project” (NFXP) to a joint venture formed by Técnicas Reunidas (70%) and the Chinese company Wison Engineering Ltd. (30%) for more than 600 million USD.

The project consists of the construction of new sulfur sulfur-handling, storage and loading facilities to process and export sulfur from the existing expansion of the liquefied natural gas (LNG) plant at Ras Laffan Industrial City (RLIC). The new sulfur plant will process an average of 5,000 tons of molten sulfur per day.

The contract will also include an option for further expansion to support sulfur production for the two additional LNG trains of the North Field South (NFS) project, and infrastructure to support future additional LNG trains.

The project includes the connection of the new facilities to the existing sulfur gathering system, as well as new granulators, solid sulfur storage capacity, sulfur handling equipment, and a new ship loading system.

The expected duration of the project is 48 months, with some 415 engineers on peak, of which more than 70% will be from Técnicas Reunidas.

The work to be carried out by Técnicas Reunidas will have a double positive environmental impact: on the one hand, it will improve air quality; and on the other, it will facilitate a circular economy scheme, since the sulfur generated as a by-product of the gas treatment process can be used in the production of fertilizers and as a base material for intermediate chemical products used in the manufacture of industrial and domestic products.

Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy said: “The award of this EPC contract is the culmination of our efforts to implement the NFE project, the largest of its kind in the history of LNG industry, as part of our journey for the sustainable development of our massive natural gas resources, while maintaining our position as the world’s largest, safest and mostreliable LNG producer. The contract with the TR-Wison joint venture includes options for the NFS project as well as any future requirements for the handling, storage and loading of sulfur. We look forward to working together to deliver this important project in a safe, timely, and successful manner.”

On completion of the North Field Expansion Project, Qatar’s LNG production capacity will increase from the current 77 million tons per annum (MTPA) to 126 MTP by 2027.

Source: Técnicas Reunidas

QatarEnergy exercises contract options for North Field Expansion Project EPC-3 Contract with Técnicas Reunidas

QatarEnergy has exercised the North Field South Options for the North Field Expansion Project EPC-3 contract to expand the existing liquid product storage and loading facilities required for two future additional LNG trains that are planned for the North Field South project. 

The North Field Expansion Project EPC-3 contract, which was awarded on 19 August 2021 to Técnicas Reunidas, provides for the engineering, procurement, and construction (EPC) to expand the existing infrastructure for increased liquid production from four new LNG trains announced in February 2021 for the North Field East project with scheduled start-up of the first LNG train by year-end 2025. 

The exercise of the North Field South options includes the expansion of existing liquid storage and loading facilities for light naphtha and field condensate, propane and butane and the expansion of existing storage facilities for Mono-ethylene glycol, within Ras Laffan Industrial City. The planned duration of the project is now 47 months, and the contract value exceeds 800 million dollars.  

This contract is the culmination of front-end engineering and design (FEED) work that began in early 2018. When completed, the North Field East (NFE) Project will increase the State of Qatar’s liquefied natural gas (LNG) production capacity from 77 million tons per annum (Mtpa) to 110 Mtpa.  The second phase of the planned LNG expansion for the North Field South (NFS) Project, will further increase Qatar’s LNG production capacity from 110 Mtpa to 126 Mtpa. The NFE Project and NFS Project are both part of the North Field Expansion (NFXP) Project.

Source: Tecnicas Reunidas

Técnicas Reunidas continues to progress in the construction of the ExxonMobil’s project in Singapore

Despite the challenges and impacts of the COVID-19 pandemic, Técnicas Reunidas is making progress in the execution of ExxonMobil’s Singapore integrated manufacturing complex expansion project on Jurong Island (Singapore).

Técnicas Reunidas continues the construction phase of the project. This year, TR will increase construction activities at the Singapore site, for which it plans to mobilize over 250 personnel.

Construction activities will also increase at the modularization yards in Thailand, where the modules will be manufactured, assembled, and subsequently delivered to Singapore. Técnicas Reunidas will mobilize about 200 specialists to the yards.

The project was awarded to the Spanish company in the first quarter of 2019 through an EPC (engineering, procurement and construction) contract for approximately US$1.5 billion. The scope of work includes hydrotreating conversion units, sulfur recovery and auxiliary systems.

This contract is a continuation of the extended basic engineering (FEED) contract for the same facility, which was completed by about 150 Técnicas Reunidas’ engineers.

Over 500 engineers have been working since 2019 on the development of the detailed engineering and procurement of the project, thus confirming the company’s headquarters in Madrid as a center of excellence in engineering.

Project for YPF for US$ 264 million

On the other hand, Técnicas Reunidas has signed a US$ 264 million contract with YPF S.A. to upgrade of its Luján de Cuyo plant (Mendoza, Argentina).

The project will enable the facility to meet new fuel specifications and achieve significant environmental improvements.

YPF awarded Técnicas Reunidas in 2019 a contract for the cost estimation of the plant upgrade project under an “open book” scheme (FEED-OBE).

The Spanish company will now continue with a new contract for the engineering, procurement and construction management of the new hydrotreatment and hydrogen production units as well as various auxiliary systems.

The construction of modules and the electromechanical assembly of the new units will be carried out by AESA (a construction company of the YPF group). Técnicas Reunidas will team up with the customer for the supervision of these works.

The estimated project execution period is 40 months.

Source: Técnicas Reunidas

Técnicas Reunidas wins a US$335 million contract for the development of two combined cycle plants in Mexico

The public company Comisión Federal de Electricidad (CFE) of Mexico, the largest company in the electricity sector in Latin America, has awarded the development of two natural gas combined cycle plants (CCGT) in the state of Yucatán to a consortium formed by the Spanish companies Técnicas Reunidas and TSK, which will carry out the design and execution of the plants on a 50/50 basis, and the Japanese company Mitsubishi Power, which will provide the turbine technology.

These are the Valladolid and Mérida combined cycle plants, which will have an approximate capacity of 1,000 MW and 500 MW, respectively, and will use state-of-the-art gas turbines capable of reaching maximum efficiency levels.

The contract amount for Técnicas Reunidas is 335 million dollars.

The incorporation of more efficient electricity generation technology, based on natural gas, will allow Mexico to continue reducing the contribution of the most polluting electricity generation plants, which use heavy liquids as fuels, thus helping to decarbonize its electricity system.

In addition, the two plants will provide a significant boost to the socioeconomic development of the Yucatán peninsula and significantly strengthen the coverage of its energy needs, as the area has high and growing levels of electricity demand, especially in the summer months. In particular, its commissioning will be very relevant to supply energy to the Tren Maya, a mega railway project started in 2018 by the Government of Mexico, which will have a length of more than 1,500 kilometers and whose route extends through Yucatan and four other states in the country.

The specific actions to be undertaken by the Spanish consortium include mainly the works related to engineering, supply (excluding the gas and steam turbines, which, as well as the heat recovery boilers, will be supplied by Mitsubishi Power), construction and commissioning of the two plants, whose development will last for an estimated period of 33 months in the case of the Valladolid plant and 35 months in the case of the Mérida plant.

In particular, the engineering work, which will be assumed in its entirety by Técnicas Reunidas, will require the contribution of 500,000 total hours during 12 months by a team of more than 500 highly qualified engineers.

Source: Técnicas Reunidas

Técnicas Reunidas awarded project to participate in the 40% increase of Qatar´s liquified natural gas production

Qatar Petroleum has awarded Técnicas Reunidas an engineering, procurement, and construction (EPC) project for the expansion of onshore facilities located in the northeast of the Qatari peninsula associated with production from the North Field.

The initial scope of the project, to be executed over 41 months, is for the completion of an “EPC- 3 package” required for the expansion of liquid products storage and loading that are by-products of the LNG liquefaction process. Qatargas Operating Company Limited, Qatar Petroleum’s affiliate, organized the EPC-3 tender and will implement and supervise the implementation of the project by Tecnicas Reunidas on behalf of Qatar Petroleum.

The EPC-3 package includes the construction of liquid products rundown lines, lean gas pipeline for gas delivery into Qatar Petroleum’s domestic gas grid, the expansion of the Ras Laffan Terminal Operations (RLTO) product storage and loading facilities, Monoethylene glycol (MEG)

storage and transfer facilities expansion, and CO2 sequestration pipeline and associated facilities at CO2 injection wellheads.

The initial amount of the project has been estimated in more than 500 million US dollars. Nevertheless, the award also foresees several additional options that Qatar Petroleum may execute within a 3-month validity period after the contract is signed. These activities will mean an expansion of the liquid products storage and loading to handle future expansion of two additional LNG trains. The value of these works would substantially increase the total amount of the project already awarded to Tecnicas Reunidas and is to be announced at a future date upon execution of options by Qatar Petroleum.

Natural gas is considered an essential energy source that continues to enable the energy transition process. Its liquefied by-products, propane and butane, are clean fuels and therefore essential to achieving the sustainable energy goals set by the United Nations.

This project extends the work that Técnicas Reunidas has been carrying out in Qatar since 2006.

The North Field Expansion Project

Qatar Petroleum’s North Field, located off the northeast coast of the Qatari peninsula, is the largest non-associated natural gas field in the world.

The project, for which Técnicas Reunidas has been contracted, supports Qatar Petroleum’s plans to increase Qatar’s liquefaction natural gas (LNG) production capacity from 77 to 110 million tonnes per year. The additional LNG production is expected to commence in late 2025.

Source: Técnicas Reunidas

Qatar Petroleum awards North Field Expansion liquid products storage & loading EPC contract

Qatar Petroleum announced the awarding of a major engineering, procurement, and construction (EPC) contract for its North Field Expansion Project to Técnicas Reunidas S.A., a Madrid based contractor that provides EPC services to the energy industry.

Técnicas Reunidas will act as the EPC contractor for the expansion of existing liquid products (condensate, propane and butane) storage and loading facilities and the expansion of import facilities for Mono-Ethylene Glycol within Ras Laffan Industrial City, as well as other ancillary facilities and pipelines serving the North Field Expansion Project.

These new facilities will be utilized to handle liquid products from the four new LNG trains comprising the North Field East (NFE) project, which is scheduled to start-up before the end of 2025. The facilities will also support two new LNG trains comprising the North Field South (NFS) project.

Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, The President and CEO of Qatar Petroleum said: “The award of this major EPC contract is a part of the North Field Expansion Project, which supports the further development of Qatar’s substantial natural gas resources and reinforces our position as the world’s largest LNG producer. The contract provides for the expansion of the existing infrastructure required to ensure the safe loading and on-time delivery of associated liquid products to our international customers. We look forward to working with Técnicas Reunidas to deliver this important project in a safe, timely and successful manner.”

The award of this contract is the culmination of front-end engineering and design (FEED) work that began in early 2018, and represents another important milestone to deliver on Qatar Petroleum’s commitment to significantly increase Qatar’s LNG production capacity. When completed, the NFE project will increase Qatar’s LNG production capacity from 77 million tons per annum (MTPA) to 110 MTPA, while the NFS project will further increase Qatar’s LNG production capacity from 110 MTPA to 126 MTPA.

His Excellency Minister Al-Kaabi added: “The NFE project, with a capacity of 32 MTPA, is the largest LNG project ever to be undertaken. We are grateful to the wise leadership and directives of His Highness The Amir Sheikh Tamim bin Hamad Al Thani, which place the greatest emphasis on the successful management and development of our natural resources in line with the Qatar National Vision 2030, while maintaining Qatar’s strong global leadership in the LNG industry.”

“I would like to thank Sheikh Khalid bin Khalifa Al-Thani, the CEO of Qatargas, and his team for their valuable contributions to the project, and to commend the world-class performance of Qatar Petroleum and Qatargas project teams to successfully deliver on this ambitious mission. Activities on the ground are progressing well on all fronts and according to plan, and we are on target to deliver the first LNG from the NFE project by the end of 2025,” His Excellency concluded.

As part of the contract, Técnicas Reunidas will perform the detailed engineering work in Qatar, leveraging the growing technical capabilities in the country for the development of major projects.​

Source: Qatar Petroleum

Técnicas Reunidas has been selected as the Main Contractor for the Technical Ammonium Nitrate Plant in Western Australia

Yara International ASA, has selected Técnicas Reunidas (TR) for the TAN (Technical Ammonium Nitrate) Project on the Burrup Peninsula, in the state of Western Australia, Australia. Final decision to execute the project and contract award to Tecnicas Reunidas is subject to Board Approvals by YARA International ASA and Burrup Holding Limited. The contract will be on a lump sum turnkey (LSTK) basis with an approximate value of USD 500 million.

Yara has chosen TR not only as the main contractor for the whole project, but also has selected TR’s technology and “know how” for the liquid Ammonium Nitrate and Nitric Acid licensed by its 100% subsidiary company ESPINDESA.

TR will design and build the project which has the following main process units:

  • Wet Ammonium Nitrate with a capacity of 965 MTDP.
  • Nitric Acid with a capacity of 760 MTDP.
  • TAN Prilling Plant (Dry Ammonium Nitrate) with a capacity of 915 MTDP which is Yara licensing technology.

TR has recently completed a similar plant in capacity and size in Mejillones, Chile, which is successfully operating and meeting all guaranteed values stipulated for the project. The design and construction component of the Burrup TAN Project is of modular design and the modules will be fabricated offshore and transported to site.

This new TAN plant will mainly supply the mining companies in the Pilbara region.

In the late 60’s, TR began to develop its technology of nitric acid through its subsidiary Espindesa. In 1971, they developed their first plant. This plant in Australia will be the tenth designed by TR with its own technology, which have been built for well know multinationals such as BASF, Dow Chemicals and Saudi Aramco.

The ammonium nitrate obtained using TR technology obtains a maximum level of porosity, of which converts it into a better product than that of its competitors. The proven nitric acid technology along with the recently developed ammonium nitrate, has converted TR as a world technology leader of prime material that serves as the base for the production of civil explosives, which in its majority is distributed to the fast growing mining and infrastructure sectors.

This Project confirms the importance of TRs’ contribution in the developments of technology to the Spanish economy and the contribution to the exportation of “know how” generated from Spain. At the end of 2010, there was a workforce of 5,955 professionals dedicated to this objective of which 70% have university degrees, the majority in different engineering disciplines.

Furthermore, the increase in TR sales in the last few years, mainly outside of Spain, has resulted in a notable increase of employment within the company. Since 2005, the direct personnel employed by TR grew by 2,850, a 92% growth, mostly engineering graduates. During the period 2009-2010, and despite the economic recession, TR contracted 723 people, which was in vast contrast to the tendencies of the Spanish economy. To this desired job creation, we also need to emphasise the importance of the knock on effect this will have on industrial employment with purchases made within Spain related to projects executed by TR.

Yara International ASA is a Norwegian-based multinational chemical company. Its largest business area is the production of nitrogen fertilizer; however it also encompasses the production of dry ice, nitrates, ammonia, urea and other nitrogen-based chemicals. Yara has its headquarters in Oslo and the company has operations in more than 50 countries.

TR is one of the leading international engineering and construction companies. TR provides engineering, procurement and construction of industrial and power generation plants all over the world, particularly in the oil and gas production, refining, petrochemicals and power generation sectors.

Source: www.tecnicasreunidas.es

ENAP awards Técnicas Reunidas an environmental enhancement project in Chile for Bio Biorefinery

ENAP Refinery Bio Bio (ERBB) has awarded to Técnicas Reunidas, S.A., the EPC Contract for the Wet Gas Sulphuric Acid Plant (WSA), Sour Water Stripping Plant(SWS), and an Amine Recovery Plant (MDEA) in Hualpén, Chile.

This is the largest project awarded by ENAP in the last three years, being a Lump Sum Turn Key project with an approximate value of 100 million US dollars, and a duration of 27 months.

The scope of the contract includes engineering, equipment and materials supply, construction, pre-commissioning, commissioning, run tests and start-up of the WSA Plant, with a capacity of 140 ton/day (plant licensed by Haldor-Topsoe), SWS Plant, with capacity of 1.600 m3/day, and MDEA Plant, with a capacity of 816 m3/day.

This project is part of the investment program for the fulfilment of the
Environmental Regulations required by the Chilean authorities. Through the execution of this important Project, Técnicas Reunidas supports ENAP in its development towards refinery eco-friendly processes.

With this Project, Técnicas Reunidas strengthens its position in Latin America and keeps its position as leader of the Oil and Gas sector in Chile, where it has maintained a continuous operation for more than 30 years. With more than 20 projects in the country, TR reinforces its relationship with ENAP, having executed more than 10 projects of diverse scope.

ENAP Refinery Bio Bio (ERBB) is part of ENAP Group and is one of the main Refineries in the Country. This refinery started its services in 1966 and has a current capacity of 116.000 barrels per day of raw oil. ENAP Group is nowadays the largest refining company in the pacific coast of South America, with a total capacity of 220.000 barrels per day.

Técnicas Reunidas is one of the leading international engineering and
construction companies in oil and gas development, refining, petrochemical and power generation for a broad range of customers throughout the world. Since 1960 TR has designed and built more than 1.000 industrial plants in more than 50countries.

Source: tecnicasreunidas.es

samsung tecnicas

Técnicas Reunidas and Samsung close $3.7bn Algerian refinery deal

The National Petroleum Corporation of Algeria (Sonatrach) has signed a $3.7bn deal with a consortium led by Spain’s Técnicas Reunidas and Samsung Engineering to build the country’s sixth oil refinery.

The consortium will build the plant in Haoud El Hamra, in central Algeria, on an engineering, procurement, construction basis.

Técnicas Reunidas will be responsible for 55% of the contract, which includes environmental work and auxiliary infrastructure.

When complete, in the first half of 2024, the refinery will be able to process 5 million tonnes of crude oil a year, or 100,000 barrels a day. This will make it the second-largest in the country after the Skikda Refinery on the Mediterranean coast.

Source: www.globalconstructionreview.com 

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Rosneft and Pertamina JV signed a contract with Tecnicas Reunidas to carry out the FEED project for Tuban Refinery, Indonesia

PT Pertamina Rosneft Pengolahan dan Petrokimia, joint venture of PJSC Rosneft Oil Company and Indonesian state oil and gas company Pertamina, signed a contract with Spanish Tecnicas Reunidas SA to carry out the Basic Engineering Design (BED) and the Front-End Engineering Design (FEED) project for the construction of oil refinery and petrochemical complex in Tuban (East Java, Indonesia).

PT Pertamina Rosneft Pengolahan dan Petrokimia joint venture was established according to the agreement signed in October 2016. Rosneft owns a 45% stake, Pertamina – 55%.

The favourable market environment and the consumption growth prospects in Indonesia allowed the joint working group of Rosneft and Pertamina to develop a competitive conception of refinery/petrochemical complex. The plant is expected to become one of the most high-tech in the world (Nelson’s complexity index 13.1). Design capacity of primary processing is planned at the level of up to 15 mmta, of the petrochemical complex – more than 1 mmta for ethylene and 1.3 mmta for aromatic hydrocarbons.

The project will receive the full support of the Indonesian authorities, both in terms of the necessary benefits and the provision of the infrastructure. Commissioning of the refinery/petrochemical complex is planned for the next 5 years. Due to the implementation of the project, a large new petrochemical cluster in the region of the city of Tuban can be created in the future.

The project is a significant element of Rosneft’s strategy to strengthen its presence in the high-margin market for petroleum-based products in the Asia-Pacific Region. The construction of the plant will strengthen the Company’s position in the Indonesian consumer market and confirm its status as a reliable partner in oil and gas production and refining projects in the region.

Source: https://www.rosneft.com/