Management of Royal Dutch Shell PLC subsidiary Shell
Deutschland Oil GMBH is evaluating the potential expansion
of residual processing capacity at the 140,000-b/d refinery at
Wesseling, Germany, which together with the former Godorf
refinery near Cologne-Godorf, form its 325,000-b/d integrated
Rheinland refinery, Germany’s largest.
In early August, refinery management began holding initial
talks with representatives from local government and environmental associations to present preliminary plans for a potential investment project that would expand capacity of Wesseling’s residue processing plant as part of a series of measures
aimed enabling production of fuels that will conform to the
International Maritime Organization’s (IMO) more stringent
maximum-permitted sulfur levels for marine fuels taking effect
on Jan. 1, 2020, Shell Deutschland said.
Still early in the process, the operator does not plan to formally submit the project for approval or release further details
regarding the proposed expansion until it has received adequate feedback from government and environmental stakeholders in the region, said Jorg Dehmel, head of technology at
the Rheinland refinery.
Shell Deutschland, which confirmed plans to continue talks
with interested parties about the modernization project, did
not disclose a definitive timeframe for when it might make a
decision regarding the possible expansion.
The investment at Wesseling follows an October 2016 vote
by the IMO’s Marine Environment Protection Committee to
implement a 0.5% global sulfur cap on marine fuel starting in
Oman-Kuwait JV lets contract for DRPIC integration
Duqm Refinery & Petrochemical Industries Co. LLC (DRPIC),
Muscat, a joint venture of state-owned Oman Oil Co. and Kuwait Petroleum Corp. subsidiary Kuwait Petroleum International Ltd., has awarded the first of three main packages for engineering, procurement, and construction of its long-planned
230,000-b/d refinery and petchem complex to be built in the
Duqm Special Economic Zone in Duqm, Al Wusta Governate.
DRPIC has let a contract to a consortium of Petrofac International Ltd. and Samsung Engineering Co. Ltd. for EPC Package
2, which covers all utilities and offsites for the project.
As part of the $2-billion contract, the Petrofac-Samsung
partnership will deliver EPC as well as commissioning, training, and other services for the refinery’s utilities and offsites.
The consortium’s scope of work under the 47-month contract is scheduled to begin shortly, Petrofac said.
While it has confirmed site preparation for the project is now
completed, DRPIC has yet to announce which of its prequalified bidders will receive the contract award for EPC Package 1,
which alongside commissioning and additional startup work,
includes EPC services for all equipment and structures required
for the integrated complex’s main processing units.
DRPIC also is awaiting responses from a separate group of
prequalified bidders to determine award of the project’s EPC
Package 3, according to the operator’s web site.
The winner of the EPC Package 3 contract will provide EPC,
commissioning, and operation services for associated offsite
facilities, including a product storage and export terminal in
Duqm, crude storage tanks in Ras Markaz, and an 80-km crude
oil pipeline from Ras Markaz to the refinery complex.
TRANSPORTATION QUICK TAKES
Gas pipeline inaugurated in northern Iran
National Iranian Gas Co. said a natural gas pipeline able to
lower reliance on former supplier Turkmenistan has been inaugurated in northern Iran.
Oil Minister Bijan Namdar Zanganeh opened a 160-km, 42-
in. pipeline that will carry gas from a connection at Damghan
through Kiasar and Sari to Neka on the Caspian Sea. The gas
will come from supergiant South Pars field in the Persian Gulf.
The pipeline’s capacity, according to Iranian Gas Engineering & Development Co., is 10 million cu m/day.
The pipeline will deliver gas to the Iranian provinces of
Golestan, Mazandaran, and Gilan, which suffered last winter
when Turkmenistan halted deliveries.
The Turkmen foreign ministry said it suspended sales to
force Iran to repay debt. NIGC called the move a violation of the
countries’ agreement and complained the supplier had hiked
the price. Iran received as much as 10 billion cu m/year of gas
from Turkmenistan after its imports from the country started
in 1997. The Turkmen government has been hurt by declining
gas prices and sales.
Gazprom stopped buying Turkmen gas early in 2016 because of a price dispute. And Chinese purchases of Turkmen
gas via three pipelines transiting Kazakhstan and Uzbekistan
have fallen below the government’s expectations.
Plans for a fourth line between Turkmenistan and China,
transiting Uzbekistan and Kyrgyzstan, were suspended.
TransCanada to expand Canadian Mainline capacity
TransCanada Corp. will apply to Canada’s National Energy
Board (NEB) to expand the capacity of its 14,114-km Canadian
Mainline System through its Maple Compressor Station near
Vaughan, Ont. The $160-million project is underpinned by 15-
year contracts and will increase capacity to southern Ontario
plus delivery to Atlantic Canada via the Trans Quebec & Maritimes Pipeline and Portland Natural Gas Transmission systems.
The proposed project will add incremental compression and
associated facilities on the Canadian Mainline to move an additional 80 MMcfd of gas.
Once TransCanada has completed its tariff process for capacity additions, an application to approve the associated facilities is expected to be filed with the NEB in early 2018, to
meet a Nov. 1, 2019, in-service date. The investment is part of
a $500-million program to support additional transportation of
Canadian and US gas along the Canadian mainline system.