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Foster Wheeler Global E&C Group’s news, successes and people around the world SUMMER 2013
12 EXPANDING IN
UPSTREAM
Acquisitions in UK,
UAE & Mexico
16 SINGAPORE
Singapore’s first LNG
terminal starts up 26 LNG REGASIFICATION
Innovative fast-track
offshore solution
CONTENTS
Welcome to FW News
Foster Wheeler Global E&C
Group’s news, successes &
people around the world
2 FW NEWS
Execution Excellence
Control of bulk quantities Construction inputs into
01 06
The objective here is to ensure the proper engineering and procurement
control of bulk quantities throughout the The objective is to optimise and align the
entire EPC phase, from estimating through inputs and needs of construction into
construction. Bulk quantities have a direct engineering and procurement, through
influence on cost, schedule, sub-contractor the definition of minimum standards.
performance, procurement and many other Inadequate definition of construction
aspects of project execution. needs at an early stage can result in severe
impacts, ranging from costly mistakes to
Worksharing significant delays and this is another area
02
The objective is to define the most cost- where getting it right every time delivers
effective worksharing model common significant benefits.
across all of our operations. To be flexible
and cost-competitive, we must be able to Planning heavy lift operations
07
execute work in multiple centres and, in This is an area where we have deep and
particular, work effectively with our Global proven expertise. This objective is all
High Value Execution Centre in India. This about ensuring that this expertise is
will also help drive the ‘One Foster applied consistently and globally and is
Wheeler’ way of working. a key part of our ‘Realizing Zero’ safety
ethos, to work safely wherever we are in
Set up and control of Foster the world.
03
Wheeler deliverables list
The objective is to ensure the proper Alignment of interfaces
08
definition, in terms of type and quantity, with clients
of Foster Wheeler deliverables. Our Our global clients expect the same ‘One
deliverables have a direct effect on all Foster Wheeler’ approach in executing
aspects of the execution of projects, projects wherever in the world they work
particularly on planning the engineering with us, so it is necessary to align all our
work, on progress measurement, on interfaces with them.
evaluating the manhours required to do
the work, on quantities to be installed and Compliance with procedures
09
ultimately on project cost and schedule.
Our processes and procedures are based
on years of experience, lessons learned
Sub-contracting and continuous improvement. If we work
04
The objective is to align the process of consistently to the standard outlined in
sub-contracting construction work, from these procedures, then the outcome will
defining the sub-contracting strategy to be consistently good.
field administration. This is an area
where the prize, in terms of efficiency
and effectiveness, is significant and where
getting it right delivers significant client These are our focus areas for 2013. But we
satisfaction and also cost-competitiveness.
do not plan to stop focusing on Execution
Excellence in December 2013! We expect to
Project risks analysis
focus on new initiatives, or continue to focus
05
The objective is to establish a common,
structured approach to the management of on further upgrades in some of the above
project risks and opportunities and to make areas, in 2014 and beyond, as part of the
sure that we apply the best practice we continuous improvement process which is
already have in-house, consistently and fully. an integral part of our core values.
FW NEWS 3
STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS
Major awards
in Chemicals, Refining & Upstream
US EPCM win for Dow Enterprise Master Service Agreement
LA-3 Crack More Ethane Project Our Houston-headquartered US operation has signed a
Our Houston operation has been awarded a contract Master Service Agreement (MSA) to support the North
P
by The Dow Chemical Company (Dow) to provide American capital project programme of Enterprise
detailed engineering, procurement and construction Products Operating LLC, a subsidiary of Enterprise
P
management (EPCm) services for the LA-3 Crack Products Partners LP. Under this evergreen agreement,
O
More Ethane Project at Dow’s Plaquemine we will provide services for multiple projects that will
T
petrochemical facility in Louisiana, US. be awarded in a ‘release’ arrangement.
. S
Enterprise is a leading US midstream company that processes,
..
The objective of this project is to improve the plant ethane
transports and/or fractionates natural gas, natural gas liquids,
flexibility to take advantage of low-cost feedstock.
crude oil and refined products.
S
The scope will include brownfield additions and retrofit
S
modifications to the plant. This project is part of Dow’s
Enterprise world-scale PDH
E
comprehensive US Gulf Coast investment strategy.
R
EPC win in US
P
“We have the proven brownfield/retrofit project execution And now we are delighted to announce that Enterprise
capabilities that are crucial to achieving Dow’s cost and has awarded our Houston operation an EPC contract
P
schedule objectives. We are pleased that our excellent working
for a propane dehydrogenation unit (PDH) and
relationship with Dow under our Global Agreement continues
O
to flourish with this latest award.” associated power, utilities and infrastructure at Mont
ST
Belvieu, Texas, US.
Javier Palencia
CEO, Foster Wheeler Americas
The construction phase of the project will be executed through
our combined use of direct-hire labour and sub-contractors.
4 FW NEWS
STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS ... STOP PRESS
R E S S
O P P
. .. S T
S
Nghi Son win in Vietnam Offshore prize in Venezuela
PR E S
Our Asia Pacific team has won a PMC services
contract for the Nghi Son Refinery and Petrochemical
(NSRP) Complex to be constructed in the Nghi Son
Economic Zone, Socialist Republic of Vietnam.
We will manage and administer, in an integrated team with We will supervise the engineering, procurement and
the client, the EPC contractor consortium through to the construction contractors and the procurement of long-lead
completion of performance testing. The NSRP complex is equipment. We will undertake supervision activities in
expected to start commercial operation in 2017. engineering centres in Houston, Madrid, London, and Rijeka,
Croatia, and in more than 15 countries for fabrication and
“We successfully completed the FEED for the NSRP complex, construction of equipment and materials at module and jacket
and subsequently provided project management services fabrication yards and for site installation.
during the tendering phase for the main EPC contract. We are
delighted to be continuing our involvement with this strategic “We are delighted that Cardon IV has selected us for this
project during the implementation phase. Our performance project, and we look forward to continuing to deliver a high-
during the earlier stages of the project, our refining expertise quality service which fully satisfies our client. We have built a
and our experience in executing major projects in Asia were strong working relationship with Cardon IV since we started
critical factors in our success in winning this significant award.” work on the conceptual engineering in 2010, and then
Roberto Penno
completed the FEED. During these three years we have
CEO, Foster Wheeler Asia Pacific provided the client with high-quality people and deliverables,
and this latest award reflects Cardon IV’s continuing
confidence in our Upstream team.”
Hal Ankrum
CEO, Foster Wheeler Upstream
Pictured left to right: Javier Palencia, CEO, Foster Wheeler Americas; Roberto Penno, CEO, Foster Wheeler Asia Pacific; Hal Ankrum, CEO, Foster Wheeler Upstream
FW NEWS 5
Realizing Zero
Engendering a Zero Harm culture
Back in 2011 we embarked on a company-wide
journey, named ‘Realizing Zero’, to create a Zero
Harm culture within our global workforce.
”
the workplace. through active leadership and
Nick Anagnostou
Global HSE Leader
commitment from all stakeholders.
Foster Wheeler Global E&C Group
6 FW NEWS
Roberto Penno, CEO, Foster “We are striving to create a
Wheeler Asia Pacific, gave culture in which everyone truly
a speech emphasising the realises that an injury incident is
importance of adopting a Zero not a statistic but rather a person
Harm mindset in everything we who was negatively affected
do. He reminded everyone that no by a shortcoming within our
job is done well unless it is done organisational system, to which
safely and the most important we all contribute.”
thing we do is making sure each
person goes home to their
families each day safe and
injury free.
“TO CREATE
“To make our Realizing Zero
journey successful, we must all A ZERO HARM
believe that zero is possible. The
good news is that the Realizing CULTURE WE
Zero initiative empowers all of us
to make a difference. In addition MUST BELIEVE IN
to HEART, we have also provided
guiding principles governed by
our Safe Office Behaviours and
THIS, ENVISION
Life Critical Activities.
IT, AND MAKE IT
“Together, these three elements
make up the foundation of OUR CHOICE.”
Realizing Zero but they do not on
their own create our Zero Harm All participants demonstrated
culture. To truly create our Zero their commitment to Realizing
Harm culture we must place an Zero by signing the commitment
emphasis on transformational banner. Signing of this banner
leadership. It’s where the ‘heart shows not only individual, but
and soul’ comes into the picture. unified, support to Realizing Zero.
FW NEWS 7
OIL UK
We were employed by Shell (the refinery was subsequently purchased by Essar) to develop
a solution to replace the cyclones as a single assembly to minimise turnaround duration as
well as the amount of work on site.
8 FW NEWS
OIL UK
We believe that this is the largest The date for the transport from
regenerator head, complete with Ellesmere Port to site of 24 March
refractory lining and cyclones, 2013 was agreed back in January
that has been fabricated as an 2011 to take advantage of lighter
assembly and then transported mornings prior to the clock
On safe completion of the anywhere in the world. So the changing to British Summer Time.
operation, Allan James, transportation challenge, given
the assembly’s 15m overall
This certainly provided a very clear
focus for the regenerator head
Essar’s project manager, diameter, was a major one! supplier, the transportation
company, Foster Wheeler, the
commented: The head manufacturer client and a considerable number
completed the head assembly of other parties.
“My thanks to the in two sections in the fabrication
shop in Genk, Belgium, as the On a very cold and wintry
integrated project team total assembly would not pass morning, the assembly
under canal bridges in Belgium. successfully completed
including Foster Wheeler, A separate ‘can’ was designed to the final leg of its journey, moving
support and protect the cyclones from Ellesmere Port docks to
our business partners and during transportation from Genk the Stanlow site, along the M53,
to the assembly yard in Antwerp. closed for several hours, arriving
offsite agencies for their The head was lifted over the on site through the newly
cyclone ‘can’ in Antwerp using constructed temporary entrance
help and professionalism a floating crane. The assembly off the A5117 main road.
was then barged from Antwerp
in delivering this mammoth to Ellesmere Port, UK, on The assembly will be installed
1 March 2013. using a large ringer crane during
piece of equipment safely the shutdown planned for
The transport weight of the new October this year. We plan to
to site.” head and cyclones is 450 tonnes cover this in a later issue of
and, with 30 axle lines of self- FW News.
propelled modular trailers,
weighed in excess of 700 tonnes There are still plenty of challenges
in total. The route required to come but, so far, the meticulous
pruning of over 200 trees advance planning has paid off in
a year in advance, and the terms of safety and schedule.
temporary removal of a
considerable amount of
street furniture.
Images: Courtesy of Essar
10 FW NEWS
“We have been involved
in this project from the
very early days, working
on the concept study,
pre-FEED, FEED and
EPC phases for the last
three and a half years.
We have worked in an
integrated team with
our client to turn the
concept into reality.”
Terry King
Senior Project Manager, Foster Wheeler
FW NEWS 11
EXPANDING
in Upstream
12 FW NEWS
A key strategic objective for us is to
grow a much stronger position in the
global upstream market by developing
our offshore upstream capabilities as
well as growing our already strong
onshore capabilities.
Here we focus on EMEA, where Frazer Mackay (pictured), the new laying the groundwork for us to
we’ve taken several key steps in Managing Director of EMEA continue to work with our clients,
realising this objective. Upstream, is driving the further supporting the development of projects
development of our upstream through FEED, EPC and beyond.
EMEA for us covers Europe, the capability, especially in offshore.
Middle East, Africa and also Russia “Our recent acquisitions of Attric in
and the Former Soviet Union, and we “We have a very strong focus on Hull and Ingen in Aberdeen and UAE,
have had a great deal of experience building our offshore skills and have been part of this drive, expanding
and a long and successful track expertise. Our business model has our offshore capability at the very early
record in onshore upstream in the traditionally been to get involved with stages of project development and in
region, with more limited offshore a project at the earliest stage and providing on-going asset support.
expertise and experience. demonstrate that we can add value,
“With these two acquisitions, and
bringing together the upstream
expertise in our Glasgow, Woking and
specialist oil and gas team in Reading,
we now have an EMEA team that
has the horsepower to provide a full
range of services across the entire
project lifecycle.
FW NEWS 13
EXPANDING
in Upstream
Foster Wheeler acquires
UK-based Ingen Ideas
We have acquired Ingen
Ideas, a privately held
upstream consultancy
company located in
Aberdeen, UK, and
in the UAE.
Kent Masters
CEO, Foster Wheeler
14 FW NEWS
Official opening of Growing in
our Woking office Mexico
On 21 March 2013, Lord Stephen Green, UK Minister of State for NorthAm joins the
Trade and Investment, officially opened our new upstream office Foster Wheeler family
in Woking, UK, unveiling a plaque at a special ceremony. The
event was preceded by a roundtable discussion between Lord
Green, who was accompanied by representatives from UK Trade
& Investment (UKTI), and senior executives from Foster Wheeler,
led by CEO Kent Masters.
FW NEWS 15
first
16 FW NEWS
New LNG terminal starts operation
The S$1.7 billion Singapore LNG
Terminal, a key infrastructure
development in Singapore’s energy
diversification strategy, is now in
operation. The first phase of
development, comprising two
180,000 m3 LNG tanks, a jetty and
regasification facilities, started
construction in 2010 and was
completed safely, on schedule
and within budget.
Above; Roberto Penno (third left), CEO, Foster Wheeler Asia Pacific, with Foster Wheeler PMC team
Main picture: Q-Max LNG carrier delivering commissioning cargo from Qatargas on 27 March 2013
FW NEWS 17
first
“Phase 1 of this strategically important project has been a great success.
The close working relationships and team spirit have undoubtedly
contributed to the excellent safety record, and its on-budget and on-time
performance. We will continue to work with the same collaborative team
spirit to help make the next phase just as successful.”
Roberto Penno
CEO, Foster Wheeler Asia Pacific
Singapore LNG received its We played a key role in this The LNG terminal has an initial
first shipment of LNG, for the project as PMC, providing regasification capacity of 3.5
commissioning of the terminal, expertise and leadership to both million tonnes per annum (mtpa).
on 27 March 2013. Then on SLNG’s project management and
7 May 2013 the first commercial Samsung C&T’s EPC team. A third LNG tank, additional
LNG cargo from BG Group was regasification facilities and a
successfully off-loaded at With the strong contribution secondary berth are currently
the terminal. from our team, the project was under construction. We are
executed with no lost-time injuries working as PMC on this second
At the stroke of midnight, the and a total recordable injury rate phase, which will increase the
LNG was regasified and sent of less than 0.24 per 200,000 regasification capacity to 6 mtpa
out through the terminal to the manhours - a great achievement by the end of 2013. Phase 3 FEED
Singapore gas network. considering that more than for a fourth tank and additional
15 million manhours were facilities for the potential future
expended on the project. expansion of the terminal is
in progress.
Opposite: Mr S Iswaran (left), Minister in Prime Minister’s Office and Second Minister for Home Affairs and
Trade & Industry, Singapore, with Roberto Penno (right), CEO, FW APAC
FW NEWS 19
petrochemicals
UAE
master plan
Recently, our Reading, UK, operation completed a master plan study for the development
of the petrochemicals sector for the Department of Economic Development (DED),
Government of Abu Dhabi, UAE. The client team for this work consisted of senior level
representatives from DED, ADNOC, Takreer, ChemaWEyaat, Borouge and Senaat
(formerly ADBIC).
20 FW NEWS
“Our technical and project execution capability and expertise
cover all phases of world-scale petrochemical projects and
this, together with our proven capability in providing expert
consultancy and master planning services, meant we were
perfectly placed to deliver this study to assist in providing
a road map for Abu Dhabi's top-targeted industry, towards
achieving its long-term diversification vision.”
Dr Damon J Hill
Senior VP, Business Development, EMEA, Foster Wheeler
FW NEWS 21
FEED win for major upgrade
Gazprom
Moscow
Refinery
22 FW NEWS
“The CORU Project is the most
Our Milan operation has important investment for our
been awarded a contract
to provide the FEED and Moscow Refinery. Timely
design documentation in completion and plant start-up
accordance with Russian are vital for our company, but
norms for Gazpromneft’s
completion of a strong FEED is
Combined Oil Refinery
Unit (CORU) project at a very important first step in the
its Moscow refinery. realisation of this key project.”
Anatoli Moiceevich Cherner
Deputy Chairman of the Board, Gazpromneft
FW NEWS 23
24 FW NEWS
Integrated bio-methionine &
thiochemicals plant in Malaysia
A world first
Our Malaysian operation is currently working
for Arkema on the world’s first integrated bio-
methionine and thiochemicals plant. This is
also the first thiochemicals platform to be built
in Asia for Arkema, a global chemical company
with operations in more than 40 countries. "We are delighted to be
The ground-breaking facility is being built at the Kerteh Bio partnering with Arkema on
Polymer Park in Terengganu, Malaysia. We have a long track
record of delivering projects in the Kerteh region and are
this strategic investment in
delighted to be supporting Arkema in this strategic investment. Malaysia. This award reflects
Arkema owns a process to produce methyl mercaptan, a the project execution capability
thiochemical and a sulphur-based intermediate that is used
in the production of methionine. Arkema will supply methyl of our Malaysian operation and
mercaptan feedstock to its JV partner for the production of
bio-methionine via a bio-fermentation process from renewable
the wider Asia Pacific region.
raw materials. Bio-methionine is a bio-amino acid used in the We look forward to continuing
production of animal feed.
our successful track record in
We are currently working on the EPC phase of the methyl
mercaptan plant, having successfully completed the pre-FEED delivering projects for Arkema."
and FEED phases. We are providing EPCm services, as well as Roberto Penno
supplying the equipment and materials for the facility. CEO, Foster Wheeler Asia Pacific
FW NEWS 25
18
An innovative fast-track
solution for fixed offshore
LNG regasification terminals
The projected growth in global gas demand, and
specifically where LNG imports are needed to meet
that gas demand, is likely to translate into requirements
for faster delivery of LNG regasification terminals.
26 FW NEWS
Combining features from different
offshore concepts, our novel
design, both modular and
scalable, is a fast-track, cost-
effective LNG import solution with
the following characteristics:
FW NEWS 27
An innovative fast-track
solution for fixed offshore
LNG regasification terminals
Our innovative solution The offshore facilities consist of • Offshore facilities and
enables a permanent the following elements: regasification equipment
installed on top of the platform
installation to be put • A conventional LNG carrier,
in place at a competitive modified and classified to The regasification unit is
price and with a fast-track function as a floating storage constructed so that all the
schedule, with higher unit (FSU), moored to a platform equipment and modules are
which also acts as a jetty integrated, transported and
availability than the
• A jetty/platform with all the placed on a piled concrete
regasification vessel
facilities for mooring ships (LNG platform or concrete caisson at
alternatives, since there carriers and the FSU); ships are the final destination, and can be
is a lower impact from moored on opposite sides of used with almost any available
adverse sea conditions. the jetty and LNG transfer is gas in the LNG market.
carried out using the unloading
arms installed at both sides of
the jetty
FSRU
Estimated parameters for alternative solutions Onshore + tankage
Onshore + FSU
Foster Wheeler solution
BAD
173M$
70M$
Total investment,
Net Present Value (10 years)
including OPEX
Initial CAPEX
Schedule to
mechanical completion
Permits
Restrictions
of applicable
standards
Possibility of
standardisation
Unit efficiency
Note:
This comparison is based on a storage capacity of
150,000m3 and a send-out rate of 500 mmscfd
(1)
Including FSRU charter rate
28 FW NEWS
Typical plot plan Float-over operation
The loading platform (including mooring Modular plant delivered in one module
and fendering system) and dolphins will as shown in the scheme, using a semi-
serve to host the shuttle LNG carrier and submersible ship (float-over).
unload the cargo via arms to the FSU.
The plant is designed to comply The compact regasification In summary, our novel design for
with International Maritime concept, which is 70m x 50m, a fast-track cost-effective LNG
Organisation and other allows a more standardised and import terminal using proven
classifications such as DNV. modular civil infrastructure equipment and technology is able
The system is designed and approach to be adopted to to handle a wide range of LNG
manufactured according to support a fast-track schedule. compositions, and offers high
DNV guidance for offshore availability. Construction
regasification installations. Cellular reinforced concrete execution is based on proven
caissons can be used, comprising methods, similar to any other
Due to the challenges of working a base slab and vertical walls. offshore upstream facility. Our
offshore, our construction innovative design can meet
strategy is based on: The regasification unit is placed aggressive schedules and is
on the caisson and the two flexible in terms of site selection.
• Minimising work offshore elements can be transported
at site together, with the caisson
• Minimising the construction functioning similarly to a barge.
period
Once the caissons arrive
• Designing for modularisation To read the full version of Augusto’s
at site, they are ballasted down,
which is possible since part of LNG17 paper please visit our website
The plan would be to deliver the the caisson is still open. The www.fwc.com/publications/index.cfm
modular plant in one module, deck slab is cast in situ later.
using a semi-submersible ship For more information, or to talk to our
(float-over). LNG experts, please contact us at
solutions@fwc.com
FW NEWS 29
Another stride
forward in China
Foster Wheeler forms JV with CEFOC
BEIJING
TIANJIN
SHIJIAZHUANG
SUZHOU
SHANGHAI
30 FW NEWS
“This is the culmination of a
great deal of work by many
people in both organisations.
It will enable us to deliver the
full value chain of services
that our clients in China are
demanding, and represents a
key milestone in our growth
strategy in China. This is truly
an exciting development for
our business here.”
Eoin Quirke
GM, Foster Wheeler (Hebei)
Engineering Design Company Limited
On 6 May 2013, in a major development This new JV company is fully The existing PECHDI offices in
licensed to engineer, procure Shijiazhuang, Beijing, Tianjin,
for our business in China, we signed an and construct process facilities and Suzhou will become part
equity purchase agreement with in China under single contracts. of the new JV company. These
CEFOC, to purchase a 49% share in are already well-established
It possesses Class A design operations, having served clients
their Chinese Design Institute, PECHDI. in the refining, chemical,
licences in the ‘Chemical,
The co-owned design institute is now a Petrochemical and Pharmaceutical’ petrochemical and pharmaceutical
new joint venture named Foster Wheeler industry. Under Chinese law, sectors for 60 years.
this industry grouping includes
(Hebei) Engineering Design Company
other key business sectors for Combining PECHDI resources
Limited, through which our Global Foster Wheeler: upstream, and our Shanghai operations
Engineering & Construction Group and refining and power. immediately creates a workforce
of more than 600 qualified
CEFOC will execute business in China.
We have management control technical personnel.
of the new company, whose
management centre will be our
Shanghai operation.
FW NEWS 31
VESTA SNG Technology
Major step forward
32 FW NEWS
Lomellina waste-to-energy
On 13 March, our Milan operation was delighted to
host a visit to its offices and the Lomellina waste-to-
energy (WTE) plant by Steven Demetriou, Non-
Executive Chairperson of our Board of Directors.
After meeting senior management of the Milan team, a small group
visited Lomellina Energia’s WTE plant located 40 km from Milan. This
is one of the power plants built by our Milan operation on a build-own-
operate basis, and burns 380,000 tonnes per year of municipal and
industrial waste, producing 40 MWe of power.
The plant, which was built in two phases, includes two lines based on
our proprietary circulating fluidised-bed boilers. The first line entered
commercial operation in 2000, the second in 2007.
FW NEWS 33
Energy management
& asset optimisation
In recent years we have
delivered energy
management and asset
optimisation workshops
to a number of clients.
34 FW NEWS
Valero Refinery, UK
Evergreen agreement
Our UK operation has signed an evergreen agreement
to provide services to Valero’s Pembroke Refinery.
We will provide home office FEED and detailed “We know this refinery well, having
engineering design services to support new executed projects for the refinery since
development and modification projects at the
Pembroke Refinery. We will also provide other
the 1980s. The combination of our
support services including project control and knowledge of the refinery, together
cost estimating. with our in-depth refining expertise,
particularly in revamp projects, and
Valero acquired the Pembroke refinery in 2011.
our flexible and responsive team,
Opened in 1964, the refinery is one of the
largest, most complex refineries in Western gives us an excellent opportunity to
Europe. Its products include gasoline, diesel, build a strong, long-term relationship
kerosene, and petrochemical feedstocks. in the UK with Valero. We have already
successfully executed projects for
Valero elsewhere, particularly in
the US.”
Filippo Abbà
Chairman & CEO, FWEL
FW NEWS 35
Our work on our EPCm contract at Sasol’s C3
Stabilisation Project at its Secunda facility in
South Africa is now well into the construction phase.
Work started in early 2012 and is currently targeted
to be completed by the end of the year, with
commercial operation planned for mid-2014.
Sasol C3
Stabilisation
Progressing safely
Above: Portion of the panoramic view of the bullet area after the final lift
Right: Bullet 4 delivery - flagman directing the truck to the lifting area
With thanks to Sasol for its kind permission to publish this article
36 FW NEWS
The project has recently A successful shutdown was
celebrated the successful completed in April to allow the
installation of all the vessels installation of the piping,
(‘bullets’), each of which weighs instrument and electrical tie-ins.
500 tons and is 56 metres long. The civil and structural steel
The vessels have been installed contracts are nearing completion
as per the original schedule. and the main focus is now on
The objective of the project is They are currently being insulated piping installation.
to stabilise the C3 value chain with a new type of fireproofing
in Secunda by de-linking the insulation which is a combination All those involved in the project
extremely tight integration of foam glass tiles and an epoxy have worked together very well
between the upstream Synthol coating. The thousands of foam so far, and we are delighted to
reactors, propylene extraction glass tiles are individually glued report that this progress has been
units and the downstream onto the surface of the vessel. achieved with no recordable
chemical plants. Six buffer This insulation of the vessels is safety incidents, and is on-track
vessels are being installed, which expected to take eight months. to complete on schedule.
will store more than 6,000 cubic
metres of propylene.
FW NEWS 37
Triumph
of meticulous planning at Kinneil
38 FW NEWS
We recently undertook the movement of
a 450-tonne module from Immingham
on Humberside to the BP Kinneil site at
Grangemouth, Scotland. This was the
heaviest module that we have designed
and shipped within the UK in the last
ten years and from the onset involved
close co-ordination between BP and our
teams based in Reading, Immingham
and Grangemouth.
FW NEWS 39
Triumph
of meticulous planning at Kinneil
All of the restrictions had to be
taken into account and provided
the dimensional envelope within
which the engineers had to work
when designing the module.
40 FW NEWS
The route from the Fabricom • Re-configuration of trailers at
works to Immingham port was site - the trailer configuration
checked as part of the module from Grangemouth docks to the
yard pre-qualification process site was governed by the width
based on the module design of the Avon bridge. The trailers
weight and dimensions. had to be reconfigured at site
to accommodate the spacing
There were, however, some of the foundation plinths.
gradients en route that had to
be analysed and Mammoet was • Site ground conditions -
additionally contracted to carry existing conditions along the
out a detailed route survey to the roads at site were generally
local port and to create a 3D high- poor and had to be upgraded
definition animation of the whole along major sections to
movement from the fabrication accommodate the wheel
yard to the foundation at site. loading from the trailers.
FW NEWS 41
Engineering
the future
Key role for our young professionals
We are members of the European Construction Institute (ECI)
and in November 2012 were invited to participate in the
Young Professionals Task Force (YPTF).
42 FW NEWS
shaping the future
of our industry
FW NEWS 43
Teesside, UK
The world’s
largest plasma
gasification project
We are the EPCm contractor for Air
Products PLC’s energy-from-waste
facility on Teesside. This ground-
breaking facility is the world’s
largest plasma gasification project
and the first of its kind in the UK.
Construction is now in full swing,
with major equipment deliveries and
installation for the power generation
section almost complete.
Barry McConnell We are also pleased to be working with Air Products on its plans for
Resident Site Manager, Foster Wheeler building a second energy-from-waste plant which is subject to relevant
approvals later this year.
FW NEWS 45
2
IRAQ CRUDE OIL EXPORT EXPANSION PROJECT
FW NEWS 47
2
IRAQ CRUDE OIL EXPORT EXPANSION PROJECT
48 FW NEWS
“This second phase of the project
will double the export capacity
expansion achieved in Phase 1.
Foster Wheeler is pleased to be
playing a key role in helping Iraq
realise its oil export objectives.”
Filippo Abbà
Chairman & CEO, FWEL
Above (left to right): George Lavelle, Chief Field Engineer; Ian Turner, Mechanical & Piping
Engineer; Russell Browning, Turnover & Completions Co-ordinator; Derek Watson, HSE
Advisor; Steve Brown, Resident Construction Manager; and Kevin Oliver, Project Engineer,
all from FW, at Karimun Island, Indonesia
FW NEWS 49
Changing
the skyline
Heavy lifts completed at IOCL Paradip
50 FW NEWS
The skyline at Paradip, Orissa
State, India, home of Indian Oil
Corporation Limited’s flagship
15 million tonnes per annum
grassroots Paradip Refinery
Project, has changed significantly
over the intensive construction
period of the last two years.
“The successful conclusion of all We are the overall managing project management
contractor (MPMC) and also PMC for a number of
heavy lift operations represents a process units and the utilities and offsites facilities.
major milestone for the IOCL Paradip
Amongst our many MPMC responsibilities has
Refinery Project and is testament to been the management and co-ordination of all
the leadership, dedication, and high heavy transportation and lifting operations on
behalf of the major EPC contractors and
performance of all those involved consultants engaged on the project.
from IOCL, Foster Wheeler, the
This significant undertaking was completed during
heavy lift contractor, and the various February 2013 with a total of approximately 20,000
tonnes of complex equipment items successfully
EPC contractors.”
installed, a record by any standard. 35 major
Filippo Abbà equipment items each weighing 300 tonnes or
Chairman & CEO, FWEL more were involved, while the installation of items
weighing less than 300 tonnes was managed
directly by the various contractors.
Opposite: Partial view of the IOCL Paradip Refinery from the south
Above, left to right: Transportation of the CDU column - 790 tonnes, 72m(l) x 12m(d); transportation of
one of the four coke drums, each weighing 630 tonnes; transportation of the VDU column - 978 tonnes,
58m(l) x 16m(d); lifting of one of the two alkylation settler vessels - 414 tonnes, 45m(l) x 4.6m(d)
FW NEWS 51
Changing
the skyline
“The Paradip project achieved another pioneering breakthrough
with the erection of four of the world’s largest coke drums for
the delayed coker unit, based on our SYDECSM delayed coking
technology. Each drum weighs 630 tonnes and is mounted
on top of a concrete superstructure at 35 metres elevation,
the world’s tallest structure of its type.”
Ash Morzeria
Project Director, Foster Wheeler
52 FW NEWS
utilisation carefully co-ordinated a maximum capacity of 2,400
with the essential welding and tonnes, was configured specially
post-weld heat treatment of by Mammoet, the heavy lift Above left: Coke drums mounted on top of a
the vessel during a four-week contractor. 35m-high concrete structure
operation.
Above: Lifting of the VDU column on 27 Nov 2011
The leadership, dedication and onto a 25m-high concrete structure
At 73 metres tall, the alkylation collaborative efforts of all those
column, weighing 560 tonnes, involved from IOCL, Foster
was the tallest single vessel to Wheeler, Mammoet and the
be installed in one operation. various contractors have been
exemplary and, following the
The huge cranes operated successful achievement of this
frequently in ‘super-lift’ major milestone, construction
configuration. The main crane works have advanced significantly
used for the CDU, VDU and as the project enters its critical
propylene recovery columns, commissioning phase.
the MSG/PCT-35 crane with
FW NEWS 53
Highlights from around the globe
THAILAND Our Thailand operation has been The plant will be located at Asia
Another PTT win awarded a contract by PTT for a new Industrial Estate, Ban Chang, Rayong,
polymethyl methacrylate (PMMA) Thailand, and is expected to start
facility at Ban Chang. We will execute commercial operation in late 2015.
the FEED for the outside battery limits Demand for PMMA is increasing: it is
portion, and will prepare the ITB often used as an alternative to glass.
package and undertake pre-
qualification and evaluation of EPC “This award confirms PTT’s continued
bids for the entire facility. confidence in the quality of our team,
our responsiveness and our ability to
The new PMMA facility will be based on provide comprehensive, high-quality
technology provided by Asahi Kasei services to PTT across its business
Chemicals Corporation. The two-train portfolio and locations.”
plant is planned to have a capacity of Graham Pope
40,000 tonnes per year, using methyl GM, Foster Wheeler Thailand
methacrylate supplied by PTT Asahi
Chemical Company Limited (PTTAC) and
meta-xylene as feedstock.
Shaking hands, Ruj Suwannasewog (left), Project Leader - PTT PMMA Project, and Chairat Sracoopun, Project Manager,
Foster Wheeler Thailand, surrounded by members of the project team at our Sriracha operation in Thailand
54 FW NEWS
PAKISTAN LIBERIA
Refinery Isomerisation Project Minerals and metals win
FEED win
We have been awarded a concept study by
Western Cluster Limited (WCL) for power
plant facilities to serve planned iron ore
mines in Liberia.
Some of the FW/PRL team with their senior executives: Iain Calcott (3rd right), GM, Glasgow Operations,
FW; Muhammad Ali Mirza (4th right), GM Project Advisory, PRL; Brian Macdonald (5th right), PM, FW;
Asad Hasan (7th right), Senior PM, PRL; Frazer Mackay (8th right), MD, EMEA Upstream, FW
We have already worked with PRL on the feasibility study phase of this
project via our Business Solutions Group in Reading, UK.
FW NEWS 55
Highlights from around the globe
AZERBAIJAN
SOCAR-Foster Wheeler JV
Happy 1st birthday!
Umberto della Sala (pictured, “This was indeed a fast-track success, “I would like to congratulate all
far left), President and COO of demonstrating the genuine interest of us on the progress made to date.
Foster Wheeler, recently visited and commitment of SOCAR and Going forward, we can clearly see
Baku in Azerbaijan on 16 March Foster Wheeler and a real desire for a wide range of possibilities for the
2013. He met with Mr Rovnag long-term co-operation. development of the JV, including
I Abdullayev (pictured, centre), upstream, environmental, wastewater
President of SOCAR, and gave a “This JV company is very lucky to treatment and refining, to name
speech to mark the first anniversary have such prominent ‘parents’ and, but a few.
of the formation of the SOCAR- thanks to SOCAR’s hospitality, the
Foster Wheeler JV. JV team is comfortably housed at “For us in Foster Wheeler, this is
SOCAR’s Oil and Gas Scientific certainly not the first time we have
“It is my honour and privilege to be Research and Design Institute developed such a joint venture for
here today to celebrate this significant premises. The JV has been working the long-term – our successful Foster
event for our two companies. Nearly on pre-FEED and FEED activities for Wheeler BIMAŞ operation in Turkey,
two years ago the idea of setting up the new gas processing plant, part forty years old this year, started in this
a joint business between our two of the planned world-scale oil, gas way. I look forward to the similarly
companies was first conceived. and petrochemicals complex successful development of our JV
By June 2011 we had signed the at Garadag. company here in Azerbaijan.”
MOU, and SOCAR-Foster Wheeler
Engineering LLC was formally
registered on 27 February 2012.
Above: SOCAR's and Foster Wheeler's management looking at the model of the
planned world-scale oil, gas and petrochemical complex at Garadag.
56 FW NEWS
UK
Queen Elizabeth Prize for Engineering
Inspiring the next generation of engineers
In the UK, the Queen Elizabeth Prize for Engineering (QEPrize) has been UK
established. It is a one million pound global engineering prize designed to reward Expanding in the UK
and celebrate individuals who have been responsible for ground-breaking
innovation in engineering, which has also been of global benefit to humanity. New offices in the North East
On 18 June, our Teesside operation in
the UK’s North East celebrated the
official opening of its new office in
Middlesbrough. A plaque was unveiled
by Ray Mallon, Elected Mayor of
Middlesbrough, at a ceremony held at
Centre North East where our new offices
are located. The ceremony was preceded
by a roundtable discussion between
Mayor Mallon and senior executives
from Foster Wheeler.
FW NEWS 57
Long Lake
SAGD Project
Canada
58 FW NEWS
The engineering concept of
designing and executing the
‘generic’ modules positively
impacts the construction
execution, and applying the
‘carbon-copy’ theory in the
module yard ultimately reduces
TIC for our client.
FW NEWS 59
An unbroken track
record in turnarounds
SAMREF Refinery, Saudi Arabia
We have been supporting the SAMREF refinery at Yanbu in Saudi Arabia with
engineering, procurement and construction planning services for their 2013
turnaround. A joint venture between Saudi Aramco and a subsidiary of ExxonMobil,
this complex refinery processes over 400,000 barrels per day of Arab Light crude.
“It was a pleasure to welcome Simon and his team to Reading. We have executed many successful
The kick-off meeting clearly demonstrated the desire to continue turnaround and maintenance projects for
to work closely as a team. I have worked with David Kell, SAMREF since 1995 and have worked on
every turnaround since that date.
ExxonMobil’s project management advisor, over many years and
many projects and, of course, Ali Kharashi, SAMREF’s project
2013 Turnaround & VDU Debottlenecking
manager, is well-known in Reading from his assignment here • FCCU and CCR revamp
during the 2002 turnaround.” • FEED, detailed engineering, procurement
and construction planning
Graeme Lang*
Director, Projects, & Project Sponsor, FWEL
2010 Turnaround
• FEED and detailed engineering and procurement
Replacement sections of both the We are also working on the FEED
fluidised catalytic cracking (FCC) for the tail gas clean-up (TGCU)
2006 Turnaround & 2006 Low-Sulphur
reactor and the regenerator have project and will start the
Automotive Diesel Project
been safely and successfully engineering, procurement and
• Engineering and procurement services
installed. We worked with construction planning in and construction personnel
SAMREF on the detailed design September 2013. The project
of these replacement sections, involves the addition of a new 2002 Turnaround
construction sequencing and the unit, taking its feed from the • Engineering and procurement services
delivery to site of the equipment, sulphur plant, to reduce
up to 400 tonnes in weight and emissions in line with limits set by 1998 Turnaround & Refinery Upgrade
15 metres in diameter. the Saudi Royal Commission. • Regenerator cyclones and internal cone:
engineering and procurement
Other projects were completed In April 2013, a SAMREF
by our team to increase the delegation headed by Simon 1995 Turnaround & FCC Revamp
steam availability in the refinery Downing, projects executive and • Reactor and regenerator head removal and
and to replace a section of a technical manager, visited our replacement: engineering and procurement
stripper tower. offices in Reading, UK, for the
TGCU kick-off meeting. The long-
The seven-week turnaround standing relationship between Right: Regenerator cyclones being lifted from their temporary support ready
was successfully completed Foster Wheeler and SAMREF to be installed onto the regenerator barrel, following their refurbishment
by SAMREF at the end of April was evident at the meeting.
this year.
* After 39 years of service with Foster Wheeler, Graeme Lang retired on 30 July 2013. FW News takes this opportunity to wish Graeme a long and happy retirement
60 FW NEWS
Image: Courtesy of SAMREF
©Ali Rwaished Awad Al Hasawi
BP
Bulwer Island
Heater module shipped four
weeks ahead of schedule
“With the project being managed from Reading, executed by our
fired heater team in India, assembled in Thailand, and shipped
to our client in Australia, it was quite a co-ordination challenge.
However, in the spirit of ‘One Foster Wheeler’, we all worked as
one team and delivered ahead of schedule and on budget, so
congratulations to all involved.”
Martyn Roberts
Manager, Fired Heater Division, FWEL
62 FW NEWS
In May 2012 we were awarded the
contract to design and supply a crude
furnace to replace the unit originally
delivered by us in 1986 to BP’s Bulwer
Island refinery in Australia. Designed
in line with today’s standards, our
solution for a replacement module
was developed to enable quick
installation at the refinery during a
critical shutdown planned for the
second quarter of this year.
FW NEWS 63
Pecket Energy
SNG study win
Our Milan operation has been awarded
a contract by Pecket Energy for feasibility,
Santiago conceptual and basic engineering studies, and
to develop an overall investment cost estimate,
for a substitute natural gas (SNG) production
facility to be built near Punta Arenas, Chile.
Left to right: Alex Andersen, Coal Gasification Development Director, Methanex; Enzo Gioviale, Director
of Commercial Operations, Foster Wheeler Italiana (FWI); Pablo Benario, CEO & Director of Pecket Energy;
Silvio Arienti, Director of Process, Power Division, FWI; Alvaro Mendoza Negri, Executive Vice President
of Ingeniería Civil Vicente (ICV); Jose Luis Fernandez Bris, Managing Director, Foster Wheeler Iberia;
Maurizio Furia, Senior Proposal Manager, FWI
64 FW NEWS
Vote of confidence
IRPC at Rayong
In 2010, Integrated Refinery Following successful completion The DCC will produce
of the Phase 1 workscope up to petrochemical feedstock, including
Petrochemical Complex Public EPC contractor selection, we are ethylene, propylene and aromatic
Company Limited (IRPC) delighted to continue our key role in naphtha. The project is scheduled
awarded us a phased release this project, having been released for completion in 2015.
to continue into the PMC phase.
contract for licensor selection
FEED, EPC construction IRPC is part-owned by PTT and “We are delighted to continue
contractor selection and PMC for operates a fully integrated complex our successful working
at Rayong, which comprises a relationship with IRPC, with
the Upstream Project for Hygiene 215, 000 barrels per day oil refinery whom we have worked on
and Value Added Products (UHV) and downstream petrochemical
key investments, including
at its integrated complex at production facilities.
a combined heat and power
Rayong, in Thailand. The objective of the UHV project is plant and a propylene plant,
to upgrade, with the installation of as well of the first phase of
a new deep catalytic cracking unit this project. This is a strong
(DCC), high-sulphur atmospheric vote of confidence in the
tower bottoms and mixed quality of our team and our
butane/butenes from IRPC’s new project execution.”
propylene plant.
Graham Pope
GM, Foster Wheeler Thailand
Left to right: Lersak Thongruang, Project Manager UHV Project, IRPC; Derek Ford, Construction Manager, FW Thailand; Peerapong Achariyacheevin, Project Sponsor UHV
Project & Senior Executive VP, IRPC; Clive Welland, Project Director, FW Thailand; Sahaschai Panichapong, Senior Executive VP, IRPC; Graham Pope, GM, FW Thailand;
Vasan Sereesongsaeng, Project Director UHV Project, IRPC; Songdej Manojinda, Project Manager, FW Thailand
FW NEWS 65
Supporting
Engen’s strategic
Transnet’s new multi-product
pipeline (NMPP) is currently being development
constructed between South Africa’s
east coast at Durban and
Johannesburg. It is expected to be
completed at the end of 2013 and
has a planned 70-year design life.
The current pipeline is 45 years old,
nearing the end of its design life,
and is running at full capacity, and
new capacity is required to supply
growing inland markets.
66 FW NEWS
Engen is a refiner-marketer of petroleum and related
products, and operates the Engen Refinery in Durban,
South Africa’s second largest refinery. For Engen to
maintain its market share post-2013, it needs to use
the NMPP.
FW NEWS 67
U P S T R E A M A W A R D I N R U S S I A
Supporting
Repsolin its strategic plan
“This project award success has been
a good example of joint collaboration
among the ‘Foster Wheeler family’
to combine our long-standing client
relationship, our upstream technical
expertise and our ability to work with
Russian norms to meet all aspects
of our client’s expectations.”
Sergio Gonzalez
Senior Proposal Engineer, Foster Wheeler Spain
68 FW NEWS
We have been awarded an upstream project in West Siberia by Russian exploration
and production company Eurotek. This company is incorporated in a joint venture
formed by Repsol and its partner Alliance Oil for the execution of this and further
similar projects in Russia.
Repsol, the Spanish oil and gas company with an international presence, is a long-
standing client of Foster Wheeler. As part of Repsol’s 2012-2016 Strategic Plan, it
plans to invest around €20 billion, with more than three-quarters of that total
earmarked for the upstream sector.
FW NEWS 69
idea zone
We continue to showcase our ME-Tech Russia Executive Summit
upstream and downstream Dubai Dubai
We again had a high profile at Held straight after ME-Tech, also
expertise and innovative this event, which covers gas in Dubai, this event attracted
solutions around the world at processing, refining, residue senior decision-makers from
upgrading and petrochemicals. Russia/CIS. Dr Damon J Hill, SVP,
a variety of leading events. Our international team included business development, EMEA,
experts from Abu Dhabi, Dubai, gave a plenary session on 21st
Italy, Russia, Saudi Arabia, UK century market drivers: the journey
and USA. to zero residue refining, and Luigi
Bressan, director of process and
We kicked off with a pre- technologies in our Milan office,
conference seminar. Well-attended discussed Hydrogen production
and interactive, this half-day cost reduction: Foster Wheeler’s
Foster Wheeler Idea Zone session unique Terrace WallTM steam
run by our subject matter experts, reforming technology.
discussed solutions to address
today’s refining challenges in the Russia BBTC
region through the clever
application of world-leading Moscow
technology, combined with best The Russia & CIS Bottom-Of-The-
practice in design and operation. Barrel Technology conference once
again gave us the opportunity to
As well as an exhibition stand to showcase our Russian presence,
help delegates locate our experts, track record and experience, and
we also presented three papers: our world-leading technologies.
70 FW NEWS
LARTC LNG17
Rio de Janeiro Houston
Latin America is a very successful Held every three years, this huge
market for us. At this year’s Latin LNG event was again very busy
America Refining Technology and our large stand, staffed by an
Forum, we presented a paper on international team of our experts,
Opportunities to maximise high attracted a non-stop stream of
value products and profitability visitors. Augusto Bulte, one of our
through zero residue refining regas experts, now based in our
and our presenter Scott Shorey, Houston operation, presented
US business development An innovative solution for fixed
director, answered many offshore LNG regasification
questions on this key topic from terminals in the main conference
the very interested audience. (see page 26).
FW NEWS 71
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RELIABILITY
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