Integrated Refining and Petrochemical Complex
To stay competitive and ahead of changing consumer trends, many refiners are challenged to transition operations from low-value fuel products to higher-value petrochemical intermediates to serve growing vertical markets. To expand petrochemical production in Saudi Arabia, two major process industry sponsors set out to construct a fully integrated, world-class refinery and petrochemical manufacturing complex based on an existing low-complexity refinery in the Middle East.
The project encompassed the purchase of the existing refinery facilities; the design, construction, completion and operation of new refinery units and petrochemicals units; and the development and operation of associated infrastructure and utilities. The new complex would be one of the largest integrated refining and petrochemicals projects built at one time, projected to produce 2.1 mtpa of olefins in addition to large volumes of gasoline and other refined products.
Beyond the vast project size, challenges of this new complex included debottlenecking; major upgrades to several of the existing process units; increase in the design capacity of the catalytic cracker and ethane cracker beyond what was commercially operating at that time; expansion into polymer and specialty chemical production; addition of dedicated power, water and steam production units; and concurrent completion testing.
Securing outside financing was important to the success of the project. Supporting the lenders in the role of independent technical consultant, Lummus Consultants evaluated the proposed design modifications, reliability of operation, scaleup risks, contracting strategy and execution plans, operation and maintenance plans, environmental and social impacts, as well as an overall risk assessment and financial implications for the lending group.
The final deliverable was released in phases, allowing lender risks to be identified and satisfactorily mitigated by the sponsors’ team as each phase proceeded. These included technology scale, early procurement of long lead items, vendor capacity assessment, sourcing of construction resources and managing peak manpower loads, and reliability and safety during pre-commissioning and commissioning.
At-a-Glance
Technology: Refining and petrochemicals
Our role: Independent technical consultant
Scope of services: Due diligence, construction monitoring, operations monitoring
Location: Saudi Arabia
Client: Confidential
Highlights
- Construct a fully integrated, world-class refinery and petrochemical complex
- Simultaneously expand and debottleneck older refinery site, plus integration
- Phased due diligence and risk mitigation methodology helped optimize project outcomes