Foster Wheeler Wins Contract for Refinery Expansion in The Republic of Mari-El, Russian Federation

abarrelfullabarrelfull wrote on 11 Jun 2013 06:56

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June 24, 2008

Foster Wheeler Ltd. (Nasdaq: FWLT) announced today that Milan-based Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded a services contract by Mariisky NPZ Ltd. for the planned expansion of the Mari-El refinery, located in the Republic of Mari-El, Russian Federation. Mariisky NPZ Ltd., a private company, owns and operates the refinery.

The objective of the expansion is to increase the refinery’s crude processing capacity from 27,000 barrels per stream day (BPSD) to 90,000 BPSD and to increase its ability to convert lower-value products into higher-value products. Mariisky NPZ Ltd. plans to install a new refinery train including new crude and vacuum distillation units, hydrocracking, hydrodesulfurization, amine and sulfur recovery units based on Shell technology, a solvent deasphalting unit, a hydrogen production unit based on Foster Wheeler technology, and sour water stripping facilities.

In addition, a power plant will be built to burn asphalt from a solvent deasphalting unit to produce steam for electric power generation for the refinery and for export to a public network. Nitrogen oxide and sulfur oxide removal systems will be installed to clean the boiler flue gases. New utility systems and storage and auxiliary facilities also form part of the expansion project.

Foster Wheeler Italiana will define the design basis, then undertake the basic design package for the non-licensed process units, power plant, utilities and offsites, and front-end engineering design (FEED) for the entire expansion project. The company also will provide assistance to the Russian design institute, which will undertake the permitting activities, and it will also coordinate and provide support to the licensors who will prepare the basic engineering packages for the licensed units.

Foster Wheeler Italiana will also develop a schedule and execution strategy for the engineering, procurement and construction (EPC) phase of this expansion project, and it will coordinate and supervise the various entities working on the project, including the selected EPC contractor(s), up to “ready for start-up” of the new facilities, which is scheduled for 2012.

Foster Wheeler Italiana will be supported by Foster Wheeler’s Moscow operation, particularly in the application of Russian norms to the design and FEED packages and the development of the FEED for certain utilities and offsites facilities.

Foster Wheeler Italiana has been released to proceed with the definition for the non-licensed process units, power plant, utilities and offsites, the application of Russian norms, and the licensor coordination and support, all during the design basis phase. This scope will be included in Foster Wheeler’s second-quarter 2008 bookings. The remaining scope will be booked if and when released by the client.

“The Russian Federation is a very important market for Foster Wheeler, demonstrated by our establishment of an operation in Moscow. This latest win in the region again confirms the added value we are able to deliver by combining the technical expertise and experience of one of our main engineering centers with the assistance and knowledge of our local operation,” said Marco Moresco, chief executive officer, Foster Wheeler Italiana.

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