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Qatar Petroleum set deadline to bid on Ras Laffan Refinery phase 2

QP to double and upgrade Ras Laffan Refinery

Qatar Petroleum (QP) and its partners, ExxonMobil, Total, Cosmo Oil Company (Cosmo), Idemitsu Kosan Company (Idemitsu), Mitsui & Company (Mitsui) and Marubeni Corporation (Marubeni) are moving on the Ras Laffan Refinery expansion project, also called Ras Laffan Refinery phase 2.

Decided in 2003 and commissioned in 2009 in the Ras Laffan Industrial City in Qatar, the Ras Laffan refinery is one of the largest condensate refinery in the world.

Qatar having limited reserves in crude oil, but the world’s third largest in natural gas in the North field, Qatar Petroleum and RasGas benefit from sustainable non associated gas resources to provide the Ras Laffan refinery and its expansion with condensate as feedstock.

Operated by Qatar Petroleum, the Ras Laffan refinery shares its working interest between:

 – Qatar Petroleum 51%, the operator

 – ExxonMobil 10%

 – Total 10%

 – Idemitsu 10%

 – Cosmo 10%

 – Mitsui 4.5%

 – Marubeni 4.5%

The Ras Laffan refinery is only processing natural gas liquids (NGL)through condensate splitters with a capacity of 146,000 b/d (7.3 million t/y) to produce:

 – 24,000 b/d of Gasoil

 – 52,000 b/d of kerosene and jet fuel

 – 61,000 b:d of hydrotreated naphtha

 – 8,000 b/d of LPG

Actually the Ras Laffan refinery is equipped with:

 – Distillation units

 – naphtha and kerosen hydrotreaters

 – Hydrogen unit

 – Saturated gas plant

Soon after commissioning in 2009, Qatar decided to work on the expansion of the Ras Laffan refinery in order to meet the spiraling demand for transportation fuels in Qatar.

Qatar Petroleum estimated the Ras Laffan Refinery expansion capital expenditure to $1 billion and is planning the completion for commercial operation by 2016.

Technip completed FEED on Qatar Refinery expansion

In August 2011, Qatar Petroleum and its partners ExxonMobil, Total, Cosmo, Idemitsu, Mitsui and Marubeni, awarded the front end engineering and design (FEED) to Technip from France.

The FEED work was executed in Technip offices in Paris and Roma.

In addition Qatar wants to meet the international standards in terms emissions of CO² and number of solid particles per million (ppm).

With the Ras Laffan expansion project, Qatar Petroleum is planning to:

 – Double capacity to 292,000 b/d (14.6 million t/y)

 – Upgrade the existing facilities to produce clean fuels

 – Add BTX units (Benzene, Toluene, Xylene) as feedstock for the production of Aromatics

Separatly from the Ras Laffan Refinery expansion project, Qatar Petroleum is working on the Ras Laffan Aromatics project to come next to the refinery.

Since Technip completed the FEED work, Qatar Petroleum and its partners proceeded to the qualification of the potential bidders for the engineering , procurement and construction (EPC) contract.

As usual the competition will be concentrated between European and Asia engineering companies:

 – Chiyoda from Japan in consortium with CTCI from Taiwan

 – Daewoo Engineering and Construction from South Korea

 – GS Engineering and Construction from South Korea

 – Hyundai Engineering and Construction from South Korea

 – JGC from Japan

 – Petrofac from UK

 – Saipem from Italy

 – Samsung Engineering from South Korea

 – Technip from France

The EPC contract should be awarded on a lump sum turn key (LSTK) basis.

In the same time as Qatar put a moratorium on the upstream activities to sustain market prices, it is developing the downstream sector to reduce its reliance on the natural gas market and increase its export activities with higher added value hydrocarbon products.

In this context, the Ras Laffan Refinery expansion project is the corner stone of Qatar’s strategic move toward petrochemical activities, thus it should be implemented without any delay.

For these reasons, Qatar Petroleum and its partners ExxonMobi, Total, Cosmo, Idemtsu, Mitusi and Marubeni are expecting the technical and commercial bids for the Ras Laffan Refinery Expansion project by mid-November.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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