November 2004

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OIL & GAS

PDO PICKS HALLIBURTON

Halliburton has securedthree major contracts inOman from PetroleumDevelopment Oman (PDO)worth US$400–500 millionover five years.

The contracts cover theprovision of cementing, stimu-lation, directional drilling, log-ging-while-drilling and mud-logging services.

JACOBS SECURESNEREFCO

CONTRACTA Jacobs Engineering GroupInc subsidiary company willprovide basic engineeringservices for NetherlandsRefining Co BV’s (Nerefco)Profitable Oil MovementSystems project at a site inRotterdam, the Netherlands.

Nerefco awarded the con-tract for the front-end (FEL)phase engineering servicesafter Jacobs successfully com-pleted the feasibility phase.The intention is to transitionthe contract into detailed engi-neering, procurement and con-struction management servic-es, depending on Jacobs’ per-formance in the FEL engineer-ing phase and project sanction.

AKER KVAERNER PROCESS

SYSTEMS FORBRAZIL

Aker Kvaerner is supplyingprocess equipment to MauaJurong S/A Brazil for theP54 production ship whichwill be installed atPetrobras’s Roncador fieldin the Campos Basin offshoreBrazil.

The US$25 million con-tract will cover, design, engi-neering and fabrication of sev-eral key systems, including asulphate reduction package.

Design will take place inNorway, while procurement,detailed engineering and fabri-cation will be carried out inBrazil using local companies.Engineering will start immedi-ately and delivery is expectedduring 2005.

FAST-TRACKREFINERY

HYDROTREATINGUNIT FOR CHILE

Technip, in consortium withIngeníeria y ConstrucciónSigdo Koppers, has beenawarded a �21 million con-tract by Enap Refinerias SAfor a new hydrotreating unitat Enap’s Bio Bio Refinery atTalcahuano, Chile.

The 12 000 barrels perstream day hydrotreating unitwill produce low-sulfur diesel,in compliance with newChilean regulations. This fast-track project (20 months) willbe completed in early July2006.

The lump sum turnkeycontract includes detailedengineering, procurement,construction, pre-commission-ing, commissioning and start-up, which will be handled byTechnip’s engineering centresin Rome and in Bogota.

MHI, VINCIAWARDED QATARLNG TANK ORDER Mitsubishi Heavy IndustriesLtd (MHI) in a consortiumwith the French companyVinci has received an orderfrom CMS&A - a joint ven-ture of Chiyoda Corp andSnamprogetti SpA - for alarge LNG (liquefied naturalgas) storage tank in Qatar.

The order will mark MHI’sfourth LNG tank installation inQatar. MHI will construct anabove-ground tank with a stor-age capacity of 140 000 kilo-litres within Qatar’s RasLaffan Industrial City. Thenew tank is scheduled fordelivery in April 2007.

MARATHON SELECTS STONE &

WEBSTER FORCLEAN FUELS EPCStone & Webster Inc hassecured an engineering, pro-curement and construction(EPC) services contract fromCatlettsburg Refining, a sub-sidiary of Marathon AshlandPetroleum, for a kerosenedesulphurization unit.

The kerosene desulphur-ization unit will produce 25 000 barrels per day of ultralow sulfur kerosene in compli-ance with the Clean Air Actregulations. Engineering andprocurement services havealready started with projectcompletion set for spring 2006.

POWERGENERATION

US COMPANIESEXPLORECLEANER

COAL PLANTBechtel, Cinergy/PSI andGeneral Electric Co are tostudy the feasibility of con-structing a commercial, inte-grated gasification combinedcycle (IGCC) generating station.

This is the first plant of itskind announced under arecently proposed GE-Bechtelalliance to develop a standardcommercial offering for inte-grated gasification combinedcycle projects in the USA.

PSI Energy, the Indianaoperating company of CinergyCorp, would own and operatethe facility. Cinergy/PSI isunderstood to be consideringseveral sites, including the siteof its coal-fired station inEdwardsport, Indiana. Theplant would produce 500–600MW of electricity to help meetincreased demand over thenext decade.

Integrated gasificationcombined cycle plants turn

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Pump Industry Analyst

Pump CompanyIndex

Alfa Laval 5,12,15Ampco-Pittsburgh 12,13,15Andrews Sykes 12Baker Hughes 12,13,15Bell & Gossett 10Blackmer 13Boerger 13Bran+Luebbe 13Buffalo 13Cardo 12,15Carver Pump 11Ceetak 12Centrilift 13CPS 12Crane 10,12,15Cryostar 12,13Curtiss-Wright 1,13Curtiss-Wright EMD 1,13Davey Products 14David Brown Guinard Pumps 13David Brown Pumps 13David Brown Union Pumps 13DMW 15Dover 15Ebara 1,15,11,16Flowserve 1,10,11,15,16Framatome ANP 11Fuller 12Gardner Denver 7,15Gévelot 12Godwin Pumps 10Gorman-Rupp 7,15Graco 15Grundfos 11,13GUD Holdings 15Hamworthy 15Haskel International 13Hidrostal 10Hyundai Heavy Industries 11Idex 8,10,12,15Ingersoll-Rand 15ITT Industries 10,11,12,15Johnson Pump 12,15Kirloskar Brothers 10,11KSB Group 12,15Layne Christensen 15Little Giant 16Maag Pump Systems 13Met-Pro 15Metso 12Micropump 14Milton Roy 13Mono Pumps 12Moyno 10,13National-Oilwell 15Nikkiso 15Pentair 8,12,13,15,16Precision Castparts 15Robbins & Myers 15Roper Industries 9,10,15Schlumberger 12,15Smith-Koch 12Spirax-Sarco 15SPX 14,13,15Sta-Rite 13Sulzer 12,15,16Tecumseh 9,15Teikoku Electric 15Textron 13,15Thomas Industries 12,15Torishima 6,15Tsurumi 15United Technologies 15Waukesha Cherry-Burrell 13Weir 12,15Weir Floway 11Weir Lewis 14Weir Netherlands 11Weir Pumps 11Wilden 13AR Wilfley 10Wood Group 12WorldWater 10,11,15

November 2004

coal to gas, removing most ofthe sulfur dioxide and otheremissions before the gas isused to fuel a combustion tur-bine generator. The hotexhaust gases are then used toheat steam, driving a steamturbine generator. The technol-ogy uses less water and hasfewer emissions than a conven-tional coal-fired plant with cur-rently required pollution con-trol equipment. Another bene-fit is the potential to removemercury and carbon dioxideupstream of the combustionprocess at a lower cost thanconventional plants.

FLUORTO COMPLETE

NEVADA POWER PLANT

Nevada Power Co has select-ed Fluor Corp to completeconstruction of a partiallybuilt 1200 MW natural gas-fired, combined-cycle powergeneration facility in ClarkCounty, Nevada.

Fluor will provide engi-neering, procurement, con-struction, commissioning andstart-up services for the facilitywhich is expected to be fullyoperational by early 2006.

Construction work on thefacility had been deferred byits previous owner, DukeEnergy, in March 2003.Nevada Power acquired thefacility in October 2004.

KVAERNERPOWER WINS

SWEDISH BOILERUPGRADE WORK

Kvaerner Power has won acontract for the first phase ofthe modernization of aSwedish cogeneration plant.The �10 million contractincludes an option for thesecond phase, providing afully rebuilt plant.

Sweden’s ÄngelholmsEnergi is upgrading andexpanding its Åkerslund

cogeneration plant in Ängel-holm to attain increased capac-ity and higher environmentalstandards. The two districtheating boilers, which are eachmore than 20 years old, are tobe rebuilt without interruptingproduction.

Kvaerner Power has thecontract for the first phase,which is scheduled for com-pletion in November 2005. Thesecond phase is included in thecontract as an option and is dueto be completed in December2006.

CHEMICALS

FLUOR TO BUILDCHEMICAL PLANT

IN THE UKFluor Corp has been award-ed a US$200 million engi-neering, procurement andconstruction managementcontract by INEOS Chlor tobuild a new chlor-alkaliplant at the company’s man-ufacturing complex inRuncorn, Cheshire, UK.

The facility is due for com-pletion in November 2005 andwill be the first chlorine plantto use INEOS Chlor’s propri-etary new Electrolyser technol-ogy, BiChlor.

This award follows com-pletion of the front-end engi-neering earlier this year. Fluoralso is the overall project man-ager working with an integrat-ed team of engineers fromGermany’s Uhde GmbH andfrom INEOS Chlor. Engineer-ing is underway at Fluor’soffice in Haarlem, theNetherlands.

Constructed on a brown-field site at the Runcorn com-plex, the plant will produceapproximately 400 000 tons of chlorine annually. The new facility will include brine treatment, electrolyses,chlorine drying and liquefac-tion, hydrochloric acid andsodium hypochlorite synthe-ses, storage, loading and utilities.

DEGUSSA PLANSADDITIONAL PRODUCTION

UNITDegussa AG has started basicplanning for a new produc-tion line for isophoroneproducts at its site in Herne,Germany.

Once the planning work hasbeen completed, constructionof the unit, which would startup in 2007, has to be authorizedby Degussa’s management andsupervisory boards.

Degussa already operatestwo other isophorone produc-tion lines - one in Herne andthe other in Mobile, Alabama.

PETRO-CHEMICALS

AKER KVAERNERWINS INDIAN

PTA CONTRACTReliance Industries hasawarded Aker Kvaerner acontract to provide servicesfor its new pure terephthalicacid (PTA) plant to be builtat its petrochemical complexat Hazira, near Surat inGujarat, India.

Reliance already has twoPTA plants engineered by AkerKvaerner at its Hazira complexand one PTA plant inPatalganga, with a combinedcapacity of 1.4 million tonnesper annum (tpa); the new plantwill produce a further 640 000tpa. Start-up is expected inJune 2006.

CHINESEPETRO PROJECTS

FOR TECHNIPTechnip has been awardedtwo petrochemical projects inChina: one for the upgrade ofsix cracking furnaces forPetroChina Jilin Petrochem-ical Co and the other for theconstruction of three crack-ing furnaces for PetroChinaLiaoYang Petrochemical Co.

The PetroChina Jilin fur-nace modernization contractcovers the capacity expansionof six existing furnaces in theJilin ethylene plant. Four fur-naces are expected to beupgraded in 2004 and theremaining two furnaces in 2005.

PetroChina Liaoyang’scontract includes three newadditional cracking furnaces.Each of the furnaces will pro-duce 60 000 tons per year ofethylene. The first two fur-naces will start up in July 2005and the third by the end of2005.

CONSTRUCTION

MANUFACTURERSSEE CONTINUED

MARKETGROWTH

The US construction mach-inery manufacturing indus-try is expected to close 2004with robust growth, followedby continued but more mod-erate gains in 2005, accord-ing to the just-released annu-al outlook forecast of theAssociation of EquipmentManufacturers (AEM).

Manufacturers participat-ing in the latest AEM outlooksurvey expect constructionequipment markets to finish2004 with double-digit gainsin the US (16.1%) and Canada(14.3%) and an increase of8.8% in other worldwide business.

For 2005, market growth ispredicted to continue but at aslower pace: an 8.4% increasein the US, a 6.6% gain forCanada and a 7.0% jump inother worldwide markets.

Machinery makers citedcommodity costs, most notablysteel prices and availability, asa major determinant of 2005business growth. The state ofthe general economy is amongthe top concerns of construc-tion equipment manufacturerswhen rating factors that willaffect future business. This

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Pump Industry Analyst