Technip completed FEED for Ras Laffan Refinery Expansion project
Since Technip completed the front end engineering and design (FEED) contract the Ras Laffan Refinery Expansion project is moving into its final bidding phase for the engineering, procurement and construction (EPC) contract with only four companies still in the competition such as selected by Qatar Petroleum (QP) and its partners, ExxonMobil, Total, Cosmo Oil Company (Cosmo), Idemitsu Kosan Company (Idemitsu), Mitsui & Company (Mitsui) and Marubeni Corporation (Marubeni).
Built in the 2000s, the Ras Laffan refinery is one of the largest condensate refinery in the world.
The North Field non-associated gas field discovered in the 1970s propelled Qatar as world third largest country by reserves of natural gas and first exporter of liquefied natural gas (LNG) with 77 million t/y.
The Ras Laffan Refinery phase 2 project is intended to expand capacities to cover the local consumption of transportation fuels and to upgrade the existing facility to improve operating performances and produce transportation fuels in conformity with international standards regarding the CO2 emissions and the number of solid particles per million (ppm).
The existing Ras Laffan refinery has a capacity of 146,000 b/d (7.3 million t/y) of natural gas liquids (NGL) to produce:
– 61,000 b/d of hydrotreated naphtha
– 52,000 b/d of jet fuel and kerosene
– 24,000 b/d of Gasoil
– 8,000 b/d of LPG
The Ras Laffan refinery is a joint venture between:
– Qatar Petroleum 51%, the operator
– Cosmo 10%
– ExxonMobil 10%
– Idemitsu 10%
– Marubeni 4.5%
– Mitsui 4.5%
– Total 10%
In August 2011, Technip from France has been awarded the front end engineering and design (FEED) of the Ras Laffan Refinery Expansion project by Qatar Petroleum and its partners ExxonMobil, Total, Cosmo, Idemitsu, Mitsui and Marubeni.
QP selected four bidders for Ras Laffan Refinery EPC
– Double capacity to 292,000 b/d (14.6 million t/y)
– Upgrade the existing facilities to produce clean fuels
– Add Aromatics production units (Benzene, Toluene, Xylene)
The Ras Laffan Aromatics complex is not part of the Ras Laffan Refinery expansion project, but is to be developed adjacently to the refinery.
After the FEED completion by Technip, Qatar Petroleum and its partners had qualified nine teams to be invited to tender the engineering , procurement and construction (EPC) contract of the Ras Laffan Refinery Expansion project.
In February 2013, Qatar Petroleum and its partners retained only four companies from the nine qualified bidders:
– Chiyoda from Japan
– CTCI from Taiwan
– Daelim Industrial from South Korea
– Tecnidas Reunidas from Spain
This project has a high exposure in Qatar not only due to increasing demand of domestic market for transportation fuels but also as it is part of Qatar strategy to diversify its energy activities downstream in a context of tougher competition of natural gas market.
With gas market prices getting depressed and showing poor perspective of recovery, the only solution for Qatar Petroleum is to follow the example of other national oil companies in developing an upstream–downstream integrated business model in order to keep in Qatar the benefits of the low gas prices in the hydrocarbon value chain.
Reaching the final stage of the selection for the EPC contract between Chiyoda, CTCI, Daelim and Tecnidas Reunidas, Qatar Petroleum and its partners ExxonMobil, Total, Cosmo, Idemitsu, Mitsui and Marubeni are planning the $1 billion capital expenditure Ras Laffan Refinery Expansion project to come on stream in 2016.