Capital projects and contracts - May 16th 2014

This week we have seen Petrobras discuss the huge potential offshore Libra in Brazil, Duke Energy Florida announcing three large US power generation projects, and Drake & Scull securing a USD600 million contract at Egypt's new TPC Project.

Petrobras executives have discussed the massive potential opportunities on offer in the Libra area, offshore Brazil. In the future Petrobras plans to have 12 production systems in Libra, each one capable of producing 150,000 barrels of oil per day.

http://www.agenciapetrobras.com.br/Materia/ExibirMateria?p_materia=976313

Saudi Aramco has selected Technicas Reunidas (TR) for the execution of the Utilities and Common Area project within the Jazan IGCC complex in the Jazan Economic City.

TR will develop off-site facilities and the handle the development of utilities for the complex under a lump sum turnkey contract, including engineering, procurement, construction, pre-commissioning and commissioning support. The contract is valued at USD1.7 billion.

The project is penned for completion in 2017 and will be the largest gasifer-based power facility in the world.

http://www.tecnicasreunidas.es/recursos/noticias/tre-ri-jazan-igcc-ing.pdf

Drake & Scull International (DSI) has won a major deal worth USD600 million related to Egypt's new Tahrir Petrochemical Corporation (TPC) Project.

DSI will join an international consortium of companies undertaking the EPCC activities related to the Utilities and Offsite Facilities of the project.

http://www.drakescull.com/internethome/pressreleases?val=b4d0f644-a1b9-6e86-a279-ff0000d1e145

Duke Energy Florida has announced plans for three projects, according to a Power Enginerering.com report: a combined-cycle natural gas plant in Citrus County; installing two simple-cycle combustion turbine generators at the Suwannee Plant near Live Oak; and to retire two coal-fired units at the Crystal River Energy Complex.

The new 1,640-MW combined-cycle natural gas plant in Citrus County is expected to cost approximately USD1.5 billion, including financing costs. If all regulatory approvals are received, construction is expected to start in early 2016 and will be located adjacent to the existing Crystal River Energy Complex.

http://www.power-eng.com/articles/2014/05/duke-energy-florida-to-retire-coal-fired-units-invest-in-combined-cycle.html

The Clough AMEC joint venture has been awarded an AUD20 million (£11 million) EPCM contract for Arrow Energy's Daandine Expansion Project in South East Queensland, Australia.

The Daandine Expansion Project includes the installation of additional well facilities and new gas and water gathering pipelines in Queensland's Surat Basin. The contract is set to run to the end of 2015.

http://www.amec.com/media/news_releases/2014/clough_amec_jv_awarded_au$20_million_epcm_contract_for_arrow_energy0.000000E+002 %99s_daandine_expansion_project,_australia.htm

Technip has been awarded a contract for the extension of subsea infrastructure on the Alvheim field, located on the Norwegian Continental Shelf by Marathon Oil Norge. Technip's operating center in Stavanger, Norway, will administrate and execute the project, which is scheduled for completion in the first half of 2016.

http://www.technip.com/en/press/technip-awarded-contract-extension-subsea-infrastructure-alvheim-field-north-sea

Siemens Energy has secured an order for nine 2.3 MW geared turbines for the Carroll wind power plant in Iowa, USA. Delivery is scheduled for October 2014, and the plant will come online in early 2015.

http://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2014/energy/wind-power/ewp201405045.htm

A joint venture between Skanska and Strabag has signed an agreement with the Norwegian Rail Administration to build a railway tunnel in Norway. The total contract value is approximately about SEK 1.4 billion (USD214 million). Work will begin in June 2014 and will be completed during summer 2021.

http://www.epcengineer.com/news/post/11815/skanska-to-construct-railway-tunnel-in-norway-for-nok-650-m-about-sek-700-m

Research and Markets has published a Kurdistan Region - Special Oil Report. The Kurdistan regional government estimates that 45 billion barrels of oil are locked in the area.

http://www.businesswire.com/news/home/20140513006674/en/Research-Markets-Kurdistan-Region---Special-Oil#.U3Ns7y-qPs0

TransCanada Corporation has filed a project description with the National Energy Board of Canada for the Eastern Mainline Project.

The proposed project will add new facilities to the company's existing Canadian mainline natural gas transmission system in southeastern Ontario. As much as 370 km of up to 36-inch diameter pipe and associated compression facilities will need to be installed adjacent to existing Mainline facilities between the City of Markham and the Township of South Dundas in Eastern Ontario.

http://www.transcanada.com/news-releases-article.html?id=1837363

For more information about any of these capital project developments, or if you would like to share details of projects in your region, please contact David Kershaw.