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Amec Foster Wheeler has won an engineering and project management services contract from PT Pertamina and Saudi Aramco to upgrade and expand Cilacap Refinery in Central Java, Indonesia. Amec Foster Wheeler will perform the basic engineering design study, develop the scope for the proposed project and finalise the process configuration and licensors’ packages. The project is aimed to increase its capacity from 348,000 barrels to 370,000 barrels daily. It will also maximise production of cleaner gasoline and diesel, produce higher quality base oils for the domestic market, and expand annual production of aromatics and polypropylene to more than 600,000t and 160,000t respectively. The expansion project is part of Pertamina’s Refinery Development Master Plan to improve Indonesia’s energy security and involves the expansion and upgrade of its domestic refineries. The overall Cilacap Refinery upgrade project is estimated to cost about $4bn-5bn. Amec Foster Wheeler Group president for Asia, Middle East, Africa & Southern Europe Roberto Penno said: “This is a strategic project for Indonesia’s Oil & Gas industry, in one of Asia’s fastest growing economies with a growing energy demand. “We will combine our in-depth refinery expertise from our Reading, UK operation, together with our strong Asian operations, to deliver the best of Amec Foster Wheeler for this important project.”
India’s Bharat Heavy Electricals Limited (BHEL) has secured an engineering, procurement and construction (EPC) contract for the construction of a 1,320MW power plant in Bangladesh.The $1.49bn contract was awarded by the Bangladesh-India Friendship Power Company Limited (BIFPCL) for a turnkey package to build a 2x660MW Maitree Super Thermal Power Project at Rampal Upazila, under the Bagerhat district."The project is adopting stringent environmental norms with highly efficient machinery and state-of-art technologies have been selected for this project to make it an environment friendly project," NTPC said in a statement. BIFPCL is an equal-stake joint venture between Bangladesh Power development Board and NTPC of India.The plant is expected to be operational during the 2019-20 financial year.
L&T’s construction unit has won contracts worth a combined value of INR35.9bn ($534.1M) across various business lines.The company’s heavy civil infrastructure business, along with partner PES Engineers Private, has bagged an INR18.5bn ($274.4M) contract to build a barrage in Telangana, India.The scope of the contract, awarded by the Irrigation and Command Area Development Department of Telangana, includes construction of a 1632m-long barrage with radial gates.The scope of the contract also includes mechanical works related to the barrage radial gates with rope drum hoist arrangements, as well as construction of 2592m guide bunds on either side of the barrage across river Godavari at Medigadda, Mahadevapur in Karimnagar district, Telangana.L&T’s deputy managing director and president S.N. Subrahmanyan said: “It is noteworthy that the Government of Telangana has initiated work on the Medigadda Barrage Project in a very systematic and remarkable manner. “Christened a “Dream Project” of Telangana state, L&T is indeed proud to be part of this improvement plan to create irrigated agricultural production systems, which are vital for our country’s development.“This order reaffirms our expertise in building complex irrigation systems to empower the agrarian belts of the country.”L&T’s Water & Effluent Treatment Business has won an INR10.4bn ($154.8M) engineering, procurement & construction (EPC) contract from the Water Resources Department of Madhya Pradesh to build a balancing reservoir, distribution chamber and pumping station at Bansujara left bank’s main canal in Tikamgarh district, Madhya Pradesh.The contract includes design, procurement, construction and installation of pumping systems, rising and gravity main lines, branch lines, as well as distribution network including control and regulation system.The business has also bagged a contract from Ahmedabad Municipal Corporation, Gujarat, to build a 30 MLD Common Effluent Treatment Plant and associated pumping station at Danilimda, Ahmedabad. The plant will make use of sequential batch reactor technology.L&T’s Building & Factories Business has secured an INR3.94bn ($58.5M) contract for the construction of software development blocks. The scope of the work includes civil, structural, MEP and finishing works.L&T’s Power Transmission & Distribution Business has won EPC contracts valued at INR3.12bn ($46.3M) in the international market. This includes a contract from a Middle East customer to build two high-voltage substations. The business also won an order to build a medium voltage distribution substation and underground cabling works from Millennium Challenge Account in Malawi, Africa.
American oil giant Chevron has given the go-ahead to the $36.8bn Tengiz oil field expansion project in Kazakhstan.The Future Growth and Wellhead Pressure Management Project ((FGP-WPMP) is expected to raise crude oil production at the Tengiz oil field — owned and operated by Tengizchevroil (TCO), which is an affiliate of Chevron — by about 260,000 barrels daily.$27.1bn of the project’s cost will be used for facilities, while $3.5bn will be used for wells and $6.2bn for contingency and escalation. The project will make use of advanced sour gas injection technology, which has been successfully developed and proven during TCO’s expansion in 2008. Chevron’s chairman and CEO John Watson said: "The Future Growth and Wellhead Pressure Management Project represents an excellent opportunity for the company. The project builds on a record of strong performance at Tengiz and will add value for Chevron and its stockholders." Chevron Upstream executive vice president Jay Johnson added: "This project builds on the successes of prior expansions at Tengiz and is ready to move forward. It has undergone extensive engineering and construction planning reviews and is well-timed to take advantage of lower costs of oil industry goods and services." First oil is expected to be delivered in 2022.
Italian construction firm Salini Impregilo has signed a framework agreement worth $3.9bn to construct a hydropower project in Tajikistan.The firm has been awarded the first lot of the project’s work, valued at $1.95bn, which includes the construction of a 335m-high rockfill dam with a clay core on the Vakhsh River. The dam will be located in Pamir — one of Central Asia's main mountain ranges.The agreement between Salini Impregilo and Rogun Hydropower Project, the state-run company that is coordinating the project, concerns the exploitation of the Pamir’s hydroelectric potential and include four lots. The three remaining lots are seen being assigned to the group by 30 September 2016.Upon completion, the project will include six turbines of 600MW each with a total installed capacity of 3,600MW — the equivalent of three nuclear power plants.
Larsen & Toubro subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured contracts worth INR11.7bn ($174M) across its various business segments.The business has won a lump-sum turnkey contract valued at INR3.55bn ($53M) from Indian Oil Corporation Limited (IOCL) for a coke drum system package including a 1.7M metric tonnes per annum delayed coker unit at its Haldia Refinery in West Bengal, India. Reliance Industries Limited has awarded another contract worth INR5bn ($74.4M) to L&T Hydrocarbon for its MEG, LDPE and CO shift & AGR shift of DTA units.LTHE has won an INR2bn ($29.7M) contract from Hindustan Mittal Energy Limited (HMEL) for composite mechanical works of its Low Cost Expansion Project and services for capacity expansion at Guru Gobind Singh Refinery, Bathinda. The scope of work involves the structural fabrication and erection, piping for multiple process units, tankage works, equipment erection, E&I works and shutdown works.The business has secured an order worth INR1.15bn ($17.1M) for an on-going project in Kuwait, which includes the fabrication of piping spools, to be supplied from L&T’s Kattupalli Yard near Chennai, and supply of static equipment to an Indian client from L&T’s Hazira Yard located in Gujarat.
The ATAL-Degremont-China Harbour joint venture has secured a HKD$3.14bn ($404M) contract from Hong Kong’s Drainage Services Department for the first phase of the San Wai Sewage Treatment Works (STW) upgrade.The project will use the latest sedimentation technology, which is more efficient than conventional clarifiers and requires less space, saving almost 40% of the land. It will also deploy the BIM technology to visualise the plant’s design with 3D images.Drainage Services Department director Edwin Tong said: “The project comprises the design and construction of sewage treatment facilities with a daily treatment capacity of 200,000cb m to cater for the projected additional sewage flow due to development needs in the Northwest New Territories after 2020.“The works will also upgrade the treatment level of the STW to the chemically enhanced primary treatment level with ultraviolet disinfection facilities for reducing pollution loads to the northwestern waters.”Upon completion of construction works in 2020, the joint venture will undertake the operation, repair and maintenance of the STW for a contractual operation period of 15 years.
The European Bank for Reconstruction and Development (EBRD) is providing a €294M loan to enhance natural gas storage and distribution in Kazakhstan.EBRD will provide €242M to Intergas Central Asia to enhance the gas storage to its full capacity of four billion cubic metres (bcm) from the current limit of 2.6bcm, and €52M to KazTransGas-Aimak for the expansion and modernisation of the natural gas distribution network in several regions of Kazakhstan. The improvement will allow the utility to connect new households and industrial customers to gas supplies, while reducing the current dependency on coal-generated electricity.EBRD’s president Sir Suma Chakrabarti said: “We have worked consistently with Kazakhstan on projects which develop the green economy. “Few approaches create such immediate progress as a switch to cleaner sources of energy. Gas is much cleaner than coal and helps to complement renewable energy.“We are very pleased to start our cooperation with KazTransGas and to continue our enhanced partnership with Kazakhstan with these two major steps towards a sustainable future.”
Hyflux and Mitsubishi Heavy Industries (MHI) consortium’s project company TuasOne Pte Ltd has secured project financing for TuasOne waste-to-energy plant in Singapore.The project company has secured a SGD653M ($472.7M) 27-year loan facility, which will be utilized to fund the development, its construction and start-up costs.The project financing is provided by DBS Bank, Malayan Banking Berhad Singapore Branch, Mizuho Bank Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd, which are the underwriters and book-runners for the facility.DBS Bank Ltd, Maybank Kim Eng Securities Pte Ltd, Mizuho Bank Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd were the lead arrangers in the project financing.
Korea Gas Corporation (KOGAS) has inked an agreement with Indonesia-based PT Perusahaan Daerah Pertambangan dan Energi South Sumatra to build a 363km gas pipeline.Under the $600M contract, KOGAS will construct a 245km gas pipeline in South Sumatra, Indonesia and another gas pipeline, measuring 118km, in Bali. It will also operate and provide the project’s maintenance services over a 30-year period.KOGAS aims to conduct a feasibility study and assess the results before making a decision whether to proceed with the project.Established in 1983 by the Korean government, KOGAS operates four LNG regasification terminals and 4,440km of natural gas pipelines in South Korea.
Bharat Heavy Electricals Limited (BHEL) has secured an INR16bn ($239.3M) contract for the construction of a coal-based thermal power project in Odisha, India. Under the contract, BHEL will be responsible for the design, engineering, manufacture, supply, construction, erection, testing and commissioning of the 1x250MW coal-based thermal unit at Rourkela Power Project on an Engineering, Procurement and Construction (EPC) basis.BHEL’s Trichy, Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants will manufacture key equipment for the project, and the power sector division of the company will be responsible for civil works and erection or commissioning of the equipment.
UK-based oil and gas services company Wood Group has won two new contracts, worth more than $140M, to provide technical services and expertise to an oil firm in Iraq.Under the three-year contracts, Wood Group PSN (WGPSN) — one of the group’s three businesses — will offer brownfield front-end engineering design, detailed engineering, project management, procurement services, system completion and commissioning support for operations and start-up on a significant onshore asset in southern Iraq.Both contracts, set to create over 100 new jobs in the region, will be executed from southern Iraq and Dubai, where WGPSN opened an office in 2015. WGPSN's eastern region managing director David Buchan said: “These two significant contract wins demonstrate Wood Group’s commitment to working closely with key clients to extend our operations in Iraq, where we see a growth market that complements our broad service capabilities, international knowledge and strong expertise. “Establishing an office in Dubai and a base in Iraq reflects our intention to build lasting customer relationships and focus on the development of our Iraqi workforce and supply chain partnerships.”
India-based Reliance Power has secured approval from the government of Bangladesh to develop a $1.3bn liquefied natural gas (LGN) power project.
Saipem and consortium partners Bos Shelf and Star Gulf have secured the $1.3bn contract for Stage 2 of the Shah Deniz natural gas project in Azerbaijan. The Shah Deniz field is located 90km offshore Azerbaijan, in water depths from 75-550m.The five-year scope of work will include the transport and installation of subsea production systems and subsea structures, and the installation of fibre optic cables and production umbilicals.It will also involve the installation of 90km of pipelines, the activation, crewing and operations management of the new-build subsea construction vessel (SCV) Khankendi.Saipem’s CEO Stefano Cao said: “We are delighted to have secured this major award, which enables us to continue and consolidate our 20-year relationship with BP and Socar in Azerbaijan and to put our world-class people and technologies at their disposal for the timely and efficient delivery of Shah Deniz Stage 2. “This award also further strengthens Saipem’s key role in the construction of the Southern Gas Corridor where the company has a total of four contracts, in the upstream segment and in gas transportation infrastructure both onshore and offshore.”
Atlantis has entered into an agreement with privately-owned international marine, subsea and renewable energy developer SBS to establish a joint venture to develop a 150MW tidal stream site in Indonesia.SBS has been studying the potential of ocean energy resources for tidal stream devices around the Indonesian archipelago since 2013. The project will now be implemented as SBS has completed the feasibility study. The project will be supported by a 25-year power purchase agreement with the state-owned electricity company, Perusahaan Listrik Negara (PLN).Atlantis CEO Tim Cornelius said: "The Indonesian archipelago of over 17,000 islands represents an extremely promising tidal stream resource. We are looking forward to working with SBS on this exciting project that offers the potential to provide highly predictable tidal stream power generation to the people of Indonesia."This also represents an opportunity for us to demonstrate our industry-leading tidal energy technology in a range of tidal conditions and export some of the intellectual property we have created through the development of the MeyGen project from Scotland to other parts of the world."The total cost of the project has been estimated at $750m and will be constructed over a number of stages.
Hyundai Engineering has begun construction on the $2.66bn Kandym gas processing plant in Uzbekistan.The South Korean company obtained orders for the front end engineering design (FEED) services for the Kandym gas field development in 2011, and received the engineering, procurement and construction (EPC) contract for Kandym gas processing plant in February 2015 from LUOC —a joint venture between Russia's Lukoil and Uzbekistan's state-run oil and gas company UNG.The processing plant is being constructed in the Kandym gas field, which is about 520km southwest from Uzbekistan's capital city Tashkent. When completed, the facility will have an annual production capacity of 8.2bn cubic metres, or 6.35m tonnes, of natural gas.The Hyundai Engineering's stake of the project is $2.01bn and construction work is expected to be complete in the first half of 2019.
The World Bank has approved $100m of funding for the Karnataka Urban Water Supply Modernization Project (KUWSMP) in India to provide clean water to citizens of Hubballi-Dharwad.The project will be implemented by the Hubballi-Dharwad Municipal Corporation. The municipality will hire a professional water supply operating company to help improve its water supply system through a 12-year contract. It will retain ownership of the water supply assets and control of the service delivery set up. KUWSMP will enable the Hubballi-Dharwad Municipal Corporation to set up a city-level water utility that will take over water supply operations from the operating company at the end of its contract period.The $100m loan from World Banks’ International Bank for Reconstruction and Development (IBRD) has a five-year grace period, and a maturity of 24 years.World Bank country director for India Onno Ruhl said: “No major city in fast-urbanizing India provides its residents with continuous piped water supply, a situation that particularly affects the poor, women and children, who spend time and money to secure water for their basic needs.“The government of Karnataka and the city authorities of Hubballi-Dharwad are trying to change this reality. The World Bank is pleased to support their efforts to ensure that all the citizens of the twin cities, including the poor who usually remain under-served in most urban areas, have access to clean water in their homes.”
Bangladesh-China Power Company (BCPCL) has signed a $1.56bn EPC contract with a Chinese consortium for a 1,320MW coal-fired power plant in Bangladesh.BCPCL is an equal stake joint venture between North-West Power Generation Company of Bangladesh and China National Machinery Import and Export Corporation. The Chinese consortium includes First Northeast Electric Power Engineering Company (NEPC) of China and China National Energy Engineering and Construction Company (CECC).The plant will be located on a 397-hectare site at Payra in Patuakhali district, about 204km south of Dhaka, near Payra maritime port.It will have two units of 660MW capacity each. The first unit is expected to supply electricity by April 2019, while the second one will start generation six months later.The project is a part of Bangladeshi government's plan to construct a series of coal-fired power projects to produce 20,000MW electricity by 2030. The EPC contractor is slated to arrange the project fund from the Chinese banking system as credit.
China Power Engineering Consulting Co. (CPECC), a subsidiary of Energy China, has started construction on the 1,200MW Hai Duong Thermal Power Plant in Vietnam.The project will involve an investment of around $1.87bn. CPECC holds 70% stake in the project, while Jaks Resources Berhad has the remaining 30% stake.It is located in Hai Duong Province, 60km away from Vietnam’s capital city Hanoi. The construction of the power plant includes two 600MW subcritical generating units and four circulating fluid bed boilers. The thermal power plant is being constructed in a build-operate-transfer (BOT) model, with a construction period of 54 months. The concession period of the BOT contract is 25 years.Within the concession period, profits from selling electricity will be divided among the shareholders in proportion to the number of shares owned. At the end of the concession period, the plant will be transferred to Vietnam’s Ministry of Industry and Trade.
The Asian Development Bank (ADB) has granted a $123.3m loan to Metropolitan Waterworks and Sewerage System (MWSS) of Manila to build a new water tunnel in Manila, Philippines.The proposed tunnel will stretch over 6km in length, with an internal span of about 4m. It will be an intake structure at the Ipo reservoir, and a new transition basin at Bigte, with connecting infrastructure. The project will implement structural measures to minimise impact of earthquakes and other hazards, and environmental degradation. ADB Southeast Asia Department senior urban development specialist Paul van Klaveren said: "The Angat transmission system provides more than 95% of Manila's water but its existing tunnels are up to 75 years old and in poor condition, leaving the metropolitan area highly vulnerable to serious supply disruptions.“This assistance will allow the Metropolitan Waterworks and Sewerage System to build a fourth tunnel, clearing the way for it to upgrade and modernize its other existing tunnels and aqueducts to maximize and strengthen supplies.”
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