Oil and Gas Development Projects

Transcription

1 16 Review of Operations JGC Corporation Annual Report 2005 Oil and Gas Development Projects LPG FPSO facility for Cabinda Gulf Oil Co., Ltd. (Angola) Gas and oil gathering and refining facilities for Eni Gas B.V. Libyan Branch (Libya) In Iran, the construction of a large-scale natural gas processing plant for Petropars Ltd., a subsidiary of the National Iranian Oil Company, is on track for its scheduled completion at the beginning of In Qatar, JGC Middle East (JGC s subsidiary company in the U.A.E.) has been awarded a contract by Dolphin Energy Ltd. for the construction of a large-scale natural gas processing plant. Construction has begun, and is scheduled for completion in the middle of This project was the largest that JGC had in progress during fiscal Gas produced at this facility will be sent via pipeline to the neighboring U.A.E., where it will be used in power production and water desalinization plants. This project will address the rapidly growing demand for energy in the Middle East, and through the execution of this project, JGC aims to build relationships of trust with clients and establish a solid presence in the Middle East. In October 2004, JGC completed its first project in the North African country of Libya, the construction of gas and oil gathering and refining facilities for Eni Gas B.V. Libyan Branch. The plant commenced the shipping of its products to Italy on schedule. In Algeria, JGC completed a project in connection with the In Salah natural gas field development project for BP and Sonatrach, Algeria s state-owned oil and gas company, in October In Indonesia, JGC completed the construction of the world s first LPG floating production storage and offloading (FPSO) facility for Conoco Indonesia Inc. Ltd. in December In addition, JGC completed the construction of its second LPG FPSO facility for Cabinda Gulf Oil Co., Ltd. in the West African nation of Angola in October 2004.

2 17 Petroleum Refining Projects JGC won a new contract for the modernization of a petroleum refinery in Bahrain for the Bahrain Petroleum Company (BAPCO). This project encompasses the construction of a new hydrocracking unit, which, will be among the world s largest with a production capacity of 60,000 barrels per day, as well as a hydrogen unit, a sulfur recovery unit, and offsite facilities & utilities. In addition, the project involved increasing the capacity of the existing mild hydrocracking unit from 54,000 to 70,000 barrels per day and revamping it to serve as an ultra-deep desulfurization unit, reducing sulfur in diesel products down to 10ppm. Construction began in April 2005 and is proceeding smoothly. Desulfurization unit for Nippon Petroleum Refining Co., Ltd. (Japan) In Oman, the construction of a petroleum refinery for Sohar Refinery Company is advancing steadily. This was the second largest JGC project in fiscal 2004, and is scheduled for completion in August In Japan, JGC has been completing a series of projects for petroleum refining firms to enable them to produce sulfur-free gasoline and gas oil, a trend that emerged in response to environ- mental regulations. JGC received a number of new contracts in fiscal 2004, and was engaged in those projects in fiscal JGC has a solid presence in the field of the conversion of plants to produce sulfur-free petroleum products, and has been involved in over half of all such projects in Japan.

3 18 LNG Projects In Nigeria, JGC is moving toward completion of the construction of trains four and five at the LNG plant of Nigeria LNG Ltd. in the second half of 2005, and in August 2004, received a new contract for the expansion of train six, scheduled for completion in the second half of As a result of these projects, the output of this facility will increase to 22 million tons per year, making it one of the world s largest LNG production facilities. JGC won a new contract from BP Berau, Ltd. for the construction of the Tangguh LNG plant. This contract is for the construction of two trains with a capacity of 3.8 million tons per year each, and is scheduled for completion in the second half of This project is an LNG plant for SEGAS (Egypt) important element in BP s LNG strategy, and will make a significant contribution to economic growth in Indonesia, an LNGproducing nation. It is also important because it will cement Indonesia s position as a leader among LNG-exporting nations. In Egypt, JGC completed the construction of an LNG plant for Spanish Egyptian Gas Co. (SEGAS) in November This LNG plant has one train and an annual output of five million tons, placing it among the largest LNG plants operating today. Several LNG projects in various countries are now in the planning stages. As the world s foremost LNG plant project E&C contractor, JGC will endeavor to win new contracts in connection with these projects.

4 19 Chemical Projects Polycarbonate manufacturing plant for Teijin Polycarbonate China Ltd. (China) In Qatar, JGC Middle East, JGC s subsidiary in the U.A.E., has been awarded a contract by Qatar Petrochemical Company Limited (QAPCO) for the construction of an ethylene plant, scheduled for completion in the second half of JGC won a new contract from Jubail Chevron Phillips Company (JCP) for the construction of a petrochemical plant in Saudi Arabia. Completion is scheduled for the second half of Also in Saudi Arabia, Saudi Arabian Oil Co. (Saudi Aramco) and Sumitomo Chemical Co., Ltd. are planning to build the world s largest petroleum refining and petrochemical complex, and have awarded JGC the contract for the FEED services of the fluid catalytic cracker (FCC) and ethane cracker that will be the complex s core facility. In the U.S., JGC received a new contract from EVAL Company of America, a subsidiary of Japanese major chemical manufacturer Kuraray Co., Ltd., for the construction of a plant to produce EVAL resin, which is a feedstock for food packaging materials and other products. Construction is scheduled for completion in mid In Indonesia, the construction of a petrochemical plant for PT. Trans-Pacific Petrochemical Indotama (TPPI) is on schedule for completion in May In China, the construction of an eth- ylene plant for Shell Petrochemicals Co., Ltd. and China National Offshore Oil Corp. (CNOOC) is proceeding smoothly toward an October 2005 completion. Construction of an ethylene oxide and ethylene glycol plant for BASF-YPC Co., Ltd. was completed in December 2004, and construction of a polycarbonate manufacturing plant for Teijin Polycarbonate China Ltd. was completed in May Power Generation, Nuclear Power, and New Energy Projects JGC has won a new contract from Shell Global Solutions International (a Royal Dutch Shell/Group affiliate company) for the FEED services of a GTL plant in Qatar. JGC will continue its efforts to win further contracts in connection with this project. Japan Nuclear Fuel Ltd. (JNFL) has been constructing a spent nuclear fuel reprocessing plant in Rokkasho, Aomori Prefecture since JGC had responsibility for installing state-of-the-art piping in the active galleries, which is now completed, and test operation leading to the commencement of operations in July 2006 is in progress. In Saudi Arabia, the construction of a cogeneration facility for Saudi Aramco was completed in June The synthetic gas manufacturing process is the core of a GTL plant. Together with Osaka Gas Co., Ltd., and with the financial support of the Japan Oil, Gas and Metals National Corporation (JOGMEC), JGC is engaged in the development of an Advanced-Auto Thermal Gasification (A-ATG) process. For more detailed information on this new processing technology, see the Technology Feature on page 24.

5 20 Living and General Production Projects Regenerative medicine manufacturing facility for Japan Tissue Engineering Co., Ltd. (Japan) Nickel-cobalt processing plant for Coral Bay Nickel Corp. (Philippines) During fiscal 2004, JGC received two new contracts from the Chemo-Sero-Therapeutic Research Institute (Kaketsuken) for the construction of pharmaceuticals manufacturing facilities. One facility is scheduled for completion in May 2005, and the other will be finished in January In August 2004, JGC completed construction of a large-scale vial manufacturing facility in Fujinomiya, Shizuoka Prefecture, for Ono Pharmaceutical Co., Ltd. In May 2004 the Company completed construction of a hyaluronic acid bulk pharmaceuticals plant for Seikagaku Corporation in Yokosuka, Kanagawa Prefecture. JGC received a new contract from Japan Tissue Engineering Co., Ltd. for the construction of the Cell Processing Center, Japan s first regenerative medicine manufacturing facility. The center, located in Gamagori, Aichi Prefecture, was completed in December Regenerative medicine is highly advanced, 21st century technology that involves using a patient s own cells to grow tissues and organs outside their body to be implanted for restoring functions to damaged or diseased tissues. In the Philippines, JGC completed a nickel-cobalt processing plant for Coral Bay Nickel Corp. (a Philippine firm established by Sumitomo Metal Mining Co., Ltd. with local capital) six weeks ahead of schedule, in August JGC will also be working to win contracts for non-ferrous metal smelting projects in the future.

6 21 Environmental Protection, Social Development and IT Projects Higashi Sumiyoshi Morimoto Hospital for the Tachibana Foundation (Japan) JGC has received a new contract from major mail-order sales firm Nissen Co., Ltd., for the construction of new buildings at largescale distribution centers in Mie and Fukui Prefectures, as well as for the rebuilding of distribution facilities and related systems. JGC won this contract on the basis of a highly cost effective proposal for strengthening the client s logistics capabilities, and determined efforts toward the goal of enhancing the client s potential. Work at the first distribution center will be completed in March 2006, and the second will be completed in December JGC has been involved in the construction of a new building at the Yuai Memorial Hospital for the Ibaraki Resident Cooperative Union from the conceptual planning stage. Construction is now proceeding smoothly toward a scheduled November 2005 completion. Under contract with the Miyagi Welfare Association, JGC is providing planning for rebuilding projects, design supervision, and project management for the renovation of Saka General Hospital. The Company is working with the client to provide overall supervision of this project, ensuring transparency with regard to costs, as well as cost reductions and high quality. Construction of the main building is scheduled for completion in August 2005, and the renovation of existing facilities will be completed in August In Osaka, the relocation of the Higashi Sumiyoshi Morimoto Hospital under contract with the Tachibana Foundation was completed in August The construction of aircraft fueling facilities at the Central Japan International Airport for the Central Japan International Airport Co., Ltd. was completed in February Catalysts and Chemical Products Catalysts & Chemicals Industries plant (Japan) In July 2004, JGC acquired all stock in affiliate Catalysts & Chemicals Industries Co., Ltd. by purchasing the 49% stake held by Asahi Glass Co., Ltd., making Catalysts & Chemicals Industries a wholly-owned subsidiary of JGC. Through this move, the Company hopes to foster a sense of unity among its three catalyst and chemical product firms (Catalysts & Chemicals Industries, Nikki Chemical Co., Ltd., and Nikki-Universal Co., Ltd.) and the rest of the JGC Group. At the same time, JGC will be seeking business synergies created by the strengths of each of these companies, and working to further strengthen its business base. Revenues in the catalyst business rose in fiscal 2004 on the solid performance of hydro-desulfurizing catalysts and aromatic compound manufacturing catalysts, which reduce environmental impact and increase the production of petrochemical feedstocks. This was attributable to the introduction of new products and the cutting of production costs. The continued strong performance of the chemicals industry kept production of petrochemical catalysts at a high level. In addition, sales of environmental protection catalysts expanded, including exhaust gas incineration catalysts, functional enzyme materials, and overseas sales of feedstock for denox catalysts. Sales growth extended to deodorizing catalysts for the printing and painting industries, air purifiers used by manufacturers of home electronics appliances, and refrigerators, as well as catalysts for recently introduced induction heaters. In the chemical products business, overseas sales of optical materials and raw materials for cosmetics remained healthy. Together with this, JGC group has brought expanded facilities into operation for manufacturing positive electrode material for new lithium secondary batteries, as further expansion of this market is forecast. In addition, the markets for hard-disk abrasive compounds, liquid crystal materials, semiconductor materials, conductive materials and other IT-related products are expected to expand. The JGC Group is working to expand these businesses by using its strength in nano-particle preparation and alignment control technology to develop high-performance, next-generation products with new functionality, in its efforts to expand sales worldwide.