Aug 7, 2017

Total awards Donges FEED contract to Amec Foster Wheeler

Europe
Fran Roberts
2 min
Amec Foster Wheeler has been awarded a Front-End Engineering Design (FEED) contract by Total Raffinage France, a subsidiary of Total, the Fre...

Amec Foster Wheeler has been awarded a Front-End Engineering Design (FEED) contract by Total Raffinage France, a subsidiary of Total, the French multinational integrated oil and gas company.

Total has stated that the Donges refinery currently lacks desulphurisation capacity, and a significant proportion of its fuels are therefore exported because they no longer meet fuel quality European Union specifications.

The project, comprising a new vacuum gas oil hydrotreater unit and sour water stripping unit as well as modification of existing units and new interconnections, is part of the investment planned by Total to upgrade its Donges refinery, improving its performance.

Amec Foster Wheeler will support the modernisation of Total Raffinage’s Donges refinery in Western France by combining its world-class refinery FEED expertise, integrated engineering systems capabilities and its innovative Asset Information Hub (AIH) with the visualisation and digital asset Virtual Plant technology.

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Marco Moresco, Amec Foster Wheeler’s president of Downstream Capital Projects Europe, Middle East and Africa, said: “This is a strategically important project for Total designed to increase the performance of the Donges refinery, which Amec Foster Wheeler knows well from past successful projects.

“We will combine innovative Virtual Plant technology and our unique Asset Information Hub, together with our extensive refinery clean fuels expertise, to deliver this important project for Total.

“Amec Foster Wheeler has enjoyed a long and successful relationship with Total, including studies, FEEDs and engineering, procurement and construction management projects.”

The AIH provides a digital representation of the physical plant. Collating documents, data, and models of the plant, the AIH is a powerful information management system with which to control and review aspects of the plant throughout its life in a secure environment.

Combined with Virtual Plant technology, provided by Aveva, it allows a designer to move around an asset, zoom in, open documents and review data that is hosted in the AIH.

Amec Foster Wheeler is currently the only company licenced by Aveva to provide this hosting service.

The project will be delivered in the final quarter of 2017.

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Jun 21, 2021

Magellan, Enterprise and ICE unveil new futures contract

futures
Oil
trading
USA
Dominic Ellis
4 min
The Midland WTI American Gulf Coast contract is being launched in response to market interest for a Houston-based index

Magellan Midstream Partners, Enterprise Products Partners and Intercontinental Exchange (ICE) are establishing a new futures contract for the physical delivery of crude oil in the Houston area.

The Midland WTI American Gulf Coast contract is being launched in response to market interest for a Houston-based index with greater scale, flow assurance and price transparency. It will use the capabilities and global reach of ICE’s trading platform and is due to be launched by ICE by early 2022, subject to regulatory approval. 

The quality specifications of the new futures contract will be consistent with a West Texas Intermediate crude oil originating from the Permian Basin with common delivery options at either the Magellan East Houston terminal or the Enterprise Crude Houston terminal. In support of this new futures contract, Magellan and Enterprise anticipate discontinuing their existing provisions for delivery services under the current futures contracts deliverable at each terminal once the new contract receives regulatory approval and is finalised. 

“Magellan is pleased to join forces with Enterprise and ICE to offer this leading-edge joint futures contract,” said Aaron Milford, Magellan’s chief operating officer. “The new contract improves the transparency, flexibility and marketability of Midland WTI crude oil for Gulf Coast and export customers while maintaining industry-recognized quality and consistency.”

Harold Hamm, Chairman of the Board of Continental Resources and Founding Member of the American Gulf Coast Select Best Practices Task Force Association said on April 20 last year, when the Cushing, Oklahoma WTI contract traded down to -$38, it was a wake-up call to the oil industry that the storage constraints and landlocked location of the Cushing contract could no longer be ignored.

"I started the American Gulf Coast Select Best Practices Task Force to develop specifications for a new US light sweet crude oil price benchmark in the American Gulf Coast, and to advocate for its implementation and adoption as the main pricing point for the US oil markets," he said.

"We think a futures contract in the most interconnected market center in the country, with a widely accepted quality spec, which settles with guaranteed delivery of crude oil is an important new alternative for the industry. The task force has worked tirelessly to create a marker with transparency and liquidity that is waterborne for this modern era. The Midland WTI American Gulf Coast futures contract ... is a huge step forward for the industry and goes a long way to accomplishing the mission on which the task force has been working.”

Brent Secrest, Executive Vice President and Chief Commercial Officer of Enterprise’s general partner, said: “We are excited about this new crude oil futures contract, which features the combined strength of two extensive and complementary networks of midstream assets with a world-class trading platform to provide customers with greater supply reliability, flexibility and price transparency. 

As the market hub for Permian Basin production, Houston represents the most logical choice for a new futures contract. Between Magellan and Enterprise, we offer access to virtually all of the export capacity in the Houston region, redundant connectivity to all area refineries, a robust Gulf Coast storage position and interconnects to all of the relevant supply pipelines, including those owned by third parties.”

Jeff Barbuto, Global Head of Oil Markets at ICE, said combining efforts with Magellan and Enterprise to establish a benchmark for pricing Midland quality WTI on the Gulf Coast allows it to offer the industry a futures contract with over four million bpd of supply capacity from Midland into Houston, access to both domestic and foreign demand, and nearly 60 million barrels of storage capacity in the Magellan and Enterprise systems. 

"Traded on the same global platform as ICE Brent, Murban and Platts Dubai Crude Oil futures contracts, the new Midland WTI American Gulf Coast contract can also offer significant capital efficiencies to the industry and provide industry-leading quality that buyers have grown accustomed to in the Houston market," he said.

According to EIA forecastsglobal consumption of petroleum and liquid fuels will average 97.7 million bpd for all of 2021, a 5.4 million bpd increase from 2020. US crude oil production averaged 11.2 million bpd in March, up 1.4 million on February. 

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