Foster Wheeler Awarded EPC Contract for Low-Sulfur Diesel

Foster Wheeler South Africa has been awarded an EPC contract by Caltex Oil South Africa, a part of the ChevronTexaco group, for a low-sulfur diesel project.

The contract, which is the third stage of the project, covers the full EPC portion of the project through commissioning assistance. Commissioning is expected to occur in November 2005. The total investment value of the project is $32m. The terms of Foster Wheeler's contract were not disclosed.

Located at Cape Town, South Africa, the project involves the revamp of the diesel hydrotreating unit and addition of a hydrogen purification unit to produce low-sulfur diesel. Foster Wheeler plans to carry out engineering and procurement from its office in Midrand, South Africa, with construction management located on site in Cape Town.

During the first stage of the project, Foster Wheeler produced a conceptual engineering package evaluating various options for the refinery to meet the phased tightening of diesel and gasoline specifications in South Africa, including a hydrogen management study. During the second stage of the project, Foster Wheeler completed a front-end engineering design and total installed cost estimate for the revamp of the diesel hydrotreating unit, and installation of a new hydrogen purification unit. The project ensures compliance with the South African diesel fuel specification of 500 ppm wt sulfur by 1 January 2006.