McDermott to Conduct Study for $850MM Refinery
McDermott International, Inc. reported Wednesday that it has signed a memorandum of understanding (MOU) with Darwin Clean Fuels Pty Ltd. The MOU enables McDermott to conduct the feasibility study for the client’s proposed Clean Fuels Condensate Refinery, which would be built in Darwin in Australia’s Northern Territory.
The initial contract also allows McDermott to undertake the front-end engineering design (FEED) through to the final investment decision (FID) phase, the company noted in a written statement emailed to Rigzone. Should Darwin Clean Fuels take an FID, McDermott would be the refinery’s lead engineering, procurement and construction (EPC) contractor, the firm added.
“The refinery would leverage our proprietary technologies, including alkylation and sulfur recovery, and is evidence of McDermott’s technology-led EPC capabilities,” Ian Prescott, McDermott’s senior vice president for Asia Pacific, commented. “Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments.”
According to Darwin Clean Fuels’ website, the new US$850-million refinery would include a 60,000-barrel-per-day (bpd) condensate processing facility and a 10,000-bpd liquefied petroleum gas (LPG) conversion plant. Products would include gasoline, diesel, LPG and jet fuel for the Northern Territory market, and the company is contemplating exporting gasoline to Asia, Australia’s East Coast, New Zealand and even the U.S. West Coast, the website also states.
According to McDermott, early phase engineering work will start immediately and should conclude by the first quarter of 2020. Darwin Clean Fuels reports construction could start in the 2020/2021 time frame and that the project would create 200 construction and 130 full-time operations jobs.
To contact the author, email mveazey@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension