TechnipFMC said that it has satisfied the pending conditions needed to start work related to a contract it won from the Middle East Oil Refinery (MIDOR) for a refinery modernization and expansion project in Egypt.
In October 2018, TechnipFMC was awarded an engineering, procurement, and construction (EPC) contract worth more than $1bn for the MIDOR refinery complex located near Alexandria.
Under the contract, the company will be responsible for the debottlenecking of existing units apart from delivery of new units.
The new units to be installed by the company will be a crude and vacuum distillation unit, a hydrogen production facility based on its steam reforming technology, in addition to a range of process units, interconnecting, offsites and utilities.
TechnipFMC plans to include the contract award in its first quarter 2019 inbound orders in its onshore/offshore segment.
The modernized MIDOR refinery complex is expected to produce Euro V products starting in 2022 while its capacity will be increased by 60% to 160,000 barrels per day of crude oil.
Post expansion, the MIDOR refinery is estimated to have its annual product quantities boosted to about 280 thousand tons of LPG, 1.6 million tons of high-octane gasoline, 2.2 million tons of jet fuel along with 2.8 million tons of diesel.
The Egyptian refinery has been engaged in mixing and blending of petroleum products. It also provides storage for crude, products and fully manufactured petroleum derivatives in its tanks.
In October 2018, MIDOR announced that it had signed a $1.2bn loan agreement for financing the refinery expansion project with CDP Bank, Credit Agricole Bank and BNP Paribas.
MIDOR expects the total investment cost value for the refinery expansion to be $2.3bn.
TechnipFMC had been involved with MIDOR since 2001, through the delivery of the Egyptian company’s grassroot refinery.
In January 2019, the company bagged an EPC contract, in the range of $500m and $1bn, from ExxonMobil for the latter’s Beaumont Refinery expansion project.
Under the contract, the company will be responsible for the addition of the atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery units at the Beaumont Refinery.