12 January 2012

DOHA: Qatargas has signed an Engineering, Procurement and Construction (EPC) contract with Samsung Engineering Ltd for a Diesel Hydrotreater (DHT) Unit that will treat 54,000 barrels per stream day (BPSD) of diesel, from high-sulfur into ultra low-sulfur diesel fuel, at the Laffan Refinery. The Laffan Refinery, operated by Qatargas, is one of the largest condensate refineries in the world and the first of its kind in Qatar.

The contract was formally signed by H E Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry and Chairman of the Qatargas and Laffan Refinery Boards of Directors, and Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd. Also present on the occasion were Khalid bin Khalifa Al Thani, Chief Executive Officer of Qatargas and Vice Chairman & Chief Executive Officer of Laffan Refinery Company, Qatar Petroleum Board members, senior officials of Qatargas, top management from Samsung Engineering Ltd, and representatives of the Laffan Refinery shareholders.

Dr Mohammed bin Saleh Al-Sada said: "This project forms part of Qatar's National Vision, as laid down by His Highness the Emir Sheikh Hamad bin Khalifa Al Thani, for securing efficient energy supplies for the country meeting the most stringent environmental specifications, Euro 5, and contributing towards clean global energy security. The surplus production will be exported, making it the latest addition to the State of Qatar's existing export portfolio in the energy sector. The planned start-up of this project in the first quarter of 2014 is at a cost of around QR 350m."

Khalid bin Khalifa Al Thani said: "This is a very significant milestone for our Laffan Refinery, which is already undergoing an ambitious expansion drive to double its capacity of 146,000 BPSD. I'm particularly pleased about this collaboration with Samsung Engineering for the development of this Diesel Hydrotreater Unit as it represents one of the many ways through which we continue to demonstrate our highest standard of environmental management."

"It is a privilege to be awarded the Laffan Refinery DHT Unit project from Qatargas, the largest LNG producer in the world. We are excited to fortify this new partnership by delivering the project on time and safely. This being our first project in Qatar, Samsung Engineering is determined to make a positive and lasting impression to the client and to the country", said Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd.

The DHT Unit, which is aiming to produce diesel with less than ten parts per million (ppm) sulphur content with the Euro 5 specification, will be built and integrated into the existing Laffan Refinery by 2014. The DHT Unit will process straight run Light Gas Oil (LGO) feedstock from the existing Laffan Refinery 1 (LR1) and the second planned refinery (LR2).

© The Peninsula 2012