(EnergyAsia, May 15 2013, Wednesday) — Qatar has awarded a consortium comprising Japan’s Chiyoda Corp and Taiwan’s CTCI Corp the contract for the engineering, procurement, supply, construction and commissioning (EPSCC) of a second condensate refinery at its Ras Laffan Industrial City.

When completed in 2016, the 146,000 b/d Laffan Refinery 2 (LR 2) project will draw on condensate produced by Qatargas, RasGas, Barzan and Al Khaleej Gas to produce up to 60,000 b/d of naphtha, 53,000 b/d of jet fuel, 24,000 b/d of gasoil and 9,000 b/d of liquefied petroleum gas (LPG).

Qatargas will operate the US$1.5 billion plant alongside the existing 146,000 b/d LR1 refinery which started up in 2009. LR2’s owners include Qatar Petroleum (84%), Total (10%), Idemitsu (2%), Cosmo (2%), Marubeni (1%) and Mitsui (1%).

Over 3,500 people are expected to work on the project at the peak of construction.

Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and chairman and managing director of Qatar Petroleum, signed the contract this week at a ceremony in Doha together with Takashi Kubota, chairman of Chiyoda Corp, and John T. Yu, CTCI’s chairman and CEO. The event was also attended by Khalid Bin Khalifa Al-Thani, Qatargas CEO, and senior officials from Qatar Petroleum and Qatargas Operating Company.

Mr Khalifa Al-Thani said: “The second phase of Laffan Refinery while improving product distribution domestically will also help meet the increasing demand of international customers for cleaner fuel products.”

Salman Ashkanani, chief operating officer of Qatargas’s Refinery Ventures, said:

“The new expansion project will double the existing capacity of the Laffan Refinery to 292,000 barrels per stream day. The detailed engineering work for LR 2 kicked off early last month. The facility is expected to be fully operational by the third quarter of 2016, playing a central role in Qatar’s new energy mix.

“Environmental issues will be given the highest priority throughout the project execution. LR2 is designed to meet the most stringent international environmental standards.”

Mr Kubota said:  “Chiyoda Corp, as the leader of the Chiyoda-CTCI joint venture, is fully committed to deliver the project in a timely manner and will steer it through all its phases with the highest standards of safety, environmental awareness and health. The Chiyoda Group, including Chiyoda Corp and our local EPC company in Qatar, Chiyoda Almana Engineering LLC, re-affirm that we will continue to make a significant contribution to the sustainable development of the state of Qatar.”

Mr Yu said:  “Chiyoda and CTCI have experience of working together for more than 30 years worldwide. Chiyoda is also one of the shareholders of CTCI. We are fully confident to complete the project smoothly under our seamless cooperation.”

Chiyoda Corp, headquartered in Yokohama, Japan, has extensive experience in executing projects for gas processing, refineries and other hydrocarbon or industrial plant projects, particularly gas value chain projects in the Middle East, Russia, Africa, Southeast Asia and the Oceania regions. Chiyoda has long-standing relations with Qatar and Qatargas, having been involved in the construction of Qatargas’ LNG production trains.

CTCI Corp, the largest integrated engineering and construction firm in Taiwan, has considerable engineering experience in working on refinery, petrochemical, general industrial and power plant projects around the world.