Project to reduce sulphur in South African diesel

Foster Wheeler South Africa has been awarded an engineering, procurement and construction (EPC) contract by Caltex Oil South Africa for a low-sulphur diesel project.

Foster Wheeler South Africa has been awarded an engineering, procurement and construction (EPC) contract by Caltex Oil South Africa for a low-sulphur 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 $32 million.

The terms of Foster Wheeler's contract were not disclosed.

The booking was included in the second quarter.

"This contract award reflects Caltex's continuing confidence in Foster Wheeler South Africa, and further develops the 15-year relationship between the two companies," said Mark Meyer, Managing Director of Foster Wheeler South Africa.

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-sulphur 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 (FEED) 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 500ppm sulphur by weight by 1st January 2006.

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