September 2006

The new unit, known asIatan 2, will be located at theIatan generating station nearWeston, Missouri. The awardincludes integrated environ-mental control systems for the new unit and major retrofit work to the environ-mental control systems of Iatan 1, the existing 670 MWcoal-fired unit at the plant.Burns & McDonnell, headquar-tered in Kansas City, Missouri,has been named Owner’sEngineer.

GE ENERGY,BECHTEL SIGN UP

FOR CLEANERCOAL PROJECT

GE Energy and BechtelPower have signed their second agreement withAmerican Electric Power(AEP) to move forward withplans for an integrated gasification combined-cycle(IGCC), or cleaner coal,power plant.

GE and Bechtel will pro-ceed with the front-end engi-neering design (FEED) phasefor a proposed, 630 MW IGCCplant in Mason County, WestVirginia. Appalachian Power,an AEP subsidiary, would oper-ate the plant, which would belocated next to Appalachian’sexisting Mountaineer powerplant.

In September 2005, GEand Bechtel signed a FEEDagreement with AEP for a proposed IGCC project inMeigs County, Ohio. If the two projects receive all of the necessary regulatoryapprovals, they would beamong the first IGCC plants to be built in the US in the past10 years and the first of thisscale.

The FEED process for theWest Virginia project isexpected to conclude in mid-December 2006. Procurementand construction could startafter certain regulatory mile-stones are achieved.

PETRO-CHEMICALS

SHAW TO PROVIDE EPC

SERVICES FORBASF FINA PLANT

Shaw Stone & Webster hasbeen awarded a contract toprovide engineering, procure-ment, construction, technolo-gy and pre-commissioningservices for a new pyrolysisfurnace and associated auxil-iary facilities at the BASFFINA Petrochemicals LP(BFLP) Naphtha SteamCracker in Port Arthur,Texas.

The project, which will useShaw Stone & Webster’s state-of-the-art proprietary USCPyrolysis Furnace technology,is scheduled for completion in2008.

Under a separate contract,Shaw will also provide a tech-nology solution to improve theperformance within the BFLPgasoline fractionator unit.

FW TO FEED NEW TATARSTAN

COMPLEXCJSC Nizhnekamsk Refineryhas awarded Foster WheelerFrance SA the front-end engi-neering design (FEED) for anew complex of refining andpetrochemical plants inNizhnekamsk, in the Repub-lic of Tatarstan, RussianFederation.

This award has been madewithin the framework of anexisting project managementconsultancy contract awardedto Foster Wheeler France byCJSC Nizhnekamsk Refineryin 2005.

The complex consists of anoil refinery, a deep conversionplant and a petrochemical plant.The oil processing part of thecomplex includes aromaticsunits and deep conversion sec-tion with a fluidised catalytic

cracker, a distillate hydrocrack-er, a delayed coker and a gasifi-cation plant. The petrochemicalpart of the complex will includepurified terephthalic acid, poly-ethylene terephthalate, linearalkylbenzene and poly-propylene units, as well as theassociated power generationfacilities. The US$3 billioncomplex should be completedin three different phasesbetween 2008 and 2010.

CHEMICALS

BOREALISEXTENDS JACOBS

CONTRACT A Jacobs Engineering GroupInc subsidiary company hasreceived a contract amend-ment from Borealis to extendtheir engineering partnershipto include projects at theBorealis affiliate site inSchwechat, Austria. This siteis a major operational hub forpolyethylene and polypropy-lene production in CentralEurope.

Under the partnershipexpansion, Jacobs is providingconsulting, engineering, pro-curement and constructionservices.

Borealis has relocated itsheadquarters to Vienna, Austria,from Lyngby, Denmark.Borealis will also develop itsInnovation Centre in Linz,Austria, into the centre of itsinternational research activities.

TECHNIP AWARDED

NZ KUPE GAS PROJECT

Technip has been awarded areimbursable (cost plus fee)contract worth approximate-ly US$200 million by OriginEnergy Resources (Kupe) Ltdfor the overall development ofNew Zealand’s Kupe GasProject. Origin is acting asoperator of the Kupe Gas

development on behalf of thejoint venture formed withGenesis Energy, New ZealandOil and Gas Ltd and Mitsui E& P New Zealand Ltd.

The contract covers thedesign, engineering, procure-ment, installation, construction,pre-commissioning and com-missioning of an unmannedwellhead platform, a 12” multi-phase pipeline to shore andumbilical from the platform toshore, a horizontal directionallydrilled shore crossing, onshoreprocessing facilities, an exportpipeline for sales gas, and liq-uefied petroleum gas (LPG)and condensate loading bays.

The project team will bebased in Technip’s offices inPerth, Australia with detaildesign support from Technip’soperations and engineeringcentre in Kuala Lumpur,Malaysia.

The offshore work is sched-uled to begin in the first quarterof 2007 with the platforminstallation. This will be fol-lowed in late 2007 by the rigidpipelay and the diving supportworks. The onshore processingfacilities should start commer-cial production no later than thefirst half of 2009.

EQUIPMENTREPAIR DELAYS

THUNDER HORSEUNTIL 2008

BP plans to retrieve andrebuild all the sea-bed pro-duction equipment from itsThunder Horse field in thedeepwater Gulf of Mexico.

Metallurgical failure incomponents of the subsea sys-tem became evident when BPconducted pre-commissioningtests. BP has decided toretrieve both the damaged sea-bed manifold and a secondmanifold for further examina-tion and onshore testing. Thesecond manifold has also dis-played a similar failure.

BP plans to retrieve andreplace all the subsea compo-nents that it believes could be

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Pump Industry Analyst