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Samsung lands EPC contract for clean diesel unit at Qatar refinery

By ALEX DELMAR-MORGAN

South Korea's Samsung Engineering has been awarded an engineering, procurement and construction, or EPC, contract for a clean diesel-producing unit at the Qatargas-operated Laffan refinery, as the Gulf state looks to increase exports of refined products.

In an emailed statement, state-run Qatargas said it had signed the EPC contract with Samsung for a diesel hydrotreater that will process 54,000 barrels per stream day, or BPSD, of low-sulphur diesel.

Qatari energy minister Mohammed Bin Saleh Al Sada said the project, costing 350 million Qatari riyals ($96.1 million), would come on-stream in the first quarter of 2014.

Surplus fuel would be exported, he added.

Qatar plans to double the current production capacity at its Laffan refinery in the northeast if the country from 146,000 bpd to 292,000.

In July, Technip were awarded the front end engineering design, or FEED, contract for the facility's second-phase expansion.

Until the refinery's second phase is operational in the first quarter of 2016, the clean diesel making unit will run at 50% capacity, Qatargas said.

Laffan refinery started production in September 2009 and uses field condensate supplied by Qatargas and Rasgas, the state-controlled liquefied natural gas, or LNG, producers.

The refinery produces a daily 62,000 bbl of naphtha, 52,000 bbl of kerojet, 24,000 bbl of gasoil and 8,000 bbl of LPG.

The wealthy Gulf Arab state is developing its downstream industry to diversify its economy and generate revenues from the export of liquid fuels to fast-growing economies in Asia.


Dow Jones Newswires

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