Alkam Energy (Al-Khobar, Saudi Arabia) announced the signing of a Memorandum of Understanding (MOU) with Técnicas Reunidas S.A. (TR; Madrid, Spain). The MOU is for the feasibility study, technology, front-end engineering design (FEED) and engineering procurement and construction (EPC) for Clean Fuels project in the Ras Tanura refinery in the east coast of Saudi Arabia.
“The refinery would leverage our proprietary technologies, including alkylation and sulfur recovery, and is evidence of Alkam’s technology-led EPC capabilities,” said Robert Schaffer, Chief Executive Officer of Alkam Energy. “Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments.”
Condensate is a cleaner fuel; it is a light petroleum liquid that condenses from natural gas, requiring less processing to create quality transport fuels. Saudi Arabia is a major producer of condensate which is forecast to export 260,000 barrels per day by 2020 growing to 305,000 bpd by 2030. Técnicas Reunidas plans to design, build and operate the condensate plant which has 75 percent lower CO² emissions than crude oil refineries. Saudi Arabia consumes some 1,000,000 barrels a day of transport fuels and currently imports 600,000 barrels per day to meet its transport fuel needs.
“Técnicas Reunidas looks forward to the next phase of the project with Alkam Energy to move it toward a final investment decision,” said Tony Debenham, Técnicas Reunidas, Managing Director. “The Clean Fuels Condensate Refinery is a great, long-term investment in Saudi Arabia, creating jobs and contributing to the economy by reducing the reliance on fuel imports. It also creates an opportunity to maximize both the output and use of this great resource by refining condensate onshore in Saudi Arabia rather than exporting it overseas for processing it into petrochemicals or refinery blend stock, helping to address the long-term fuel security issues that Saudi Arabia faces.”
As part of the initial contract, Alkam will undertake the feasibility study and FEED through to final investment decision. Upon final investment decision, Alkam will be the lead EPC contractor for the refinery. Early phase engineering workwill commence immediately and be completed by quarter one in 2022.