McDermott to provide feasibility study, technology, FEED and EPC services for the condensate processing plant
Image: McDermott will serve as the exclusive contractor for the condensate refinery. Photo: courtesy of LEEROY Agency from Pixabay.
Engineering firm McDermott International has signed a memorandum of understanding (MoU) with Darwin Clean Fuels for the development of Clean Fuels Condensate processing plant in the Northern Territory, Australia.
Under the terms of the MoU, McDermott will provide feasibility study, technology, front-end engineering design (FEED) and engineering procurement and construction (EPC) services for the processing plant located in Darwin.
Upon moving the project through a final investment decision (FID), McDermott will serve as the exclusive contractor for the condensate refinery.
Condensate is a light petroleum liquid that condenses from natural gas and needs less processing to create quality transport fuel.
McDermott International senior vice-president Ian Prescott said: “The refinery would leverage our proprietary technologies, including alkylation and sulphur recovery, and is evidence of McDermott’s technology-led EPC capabilities.
“Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments.”
New plant to deliver cleaner fuel with reduced CO2 emissions
The new plant will capacity to deliver a cleaner fuel with condensate producing 75% lower CO2 emissions compared to that of crude oil refineries.
Darwin Clean Fuels managing director Tony Debenham said: “Darwin Clean Fuels looks forward to the next phase of the project with McDermott to move it toward a final investment decision.
“The Clean Fuels Condensate refinery is a great, long-term investment in Australia, creating jobs and contributing to the economy by reducing the reliance on fuel imports.
“It also creates an opportunity to maximise both the output and use of this great resource by refining condensate onshore in Australia rather than exporting it overseas for processing it into petrochemicals or refinery blendstock, helping to address the long-term fuel security issues that Australia faces.”
Australia, which is claimed to be a major producer of condensate, is expected to export 260,000bpd by 2020, and increase the capacity to 305,000bpd by 2030.
McDermott plans to immediately start early phase engineering work and complete by the first quarter of next year.
In August 2019, McDermott International received an EPCI contract from state-owned oil and gas company Saudi Aramco for a production deck module (PDM) in the Hasbah field as well as hook-up and modification works in the Karan field offshore Arabian Gulf.