Bloomberg News

Samsung Wins QatarGas Contract for Diesel Hydrotreater

January 12, 2012

(Updates with contract value in first paragraph.)

Jan. 12 (Bloomberg) -- Samsung Engineering Co. won a contract to build a 350 million riyal ($96 million) diesel hydrotreater at the Laffan refinery in Qatar.

The 54,000 barrel-a-day unit will produce diesel with a sulfur content of less than 10 parts per million, Qatar Liquefied Gas Co., or QatarGas, said in an e-mailed statement. The refinery, which opened in 2009, currently produces higher- sulfur diesel.

“The surplus production will be exported, making it the latest addition to the state of Qatar’s existing export portfolio in the energy sector,” Qatar’s Energy Minister Mohammed Bin Saleh Al-Sada said in the statement. The hydrotreater is scheduled to start operating by the first quarter of 2014, he said.

Qatar, the world’s biggest exporter of liquefied natural gas, seeks to diversify its exports by using the world’s third- largest gas reserves to produce aluminum, petrochemical and refined fuels.

The Laffan refinery, which is operated by QatarGas, processes as much as 146,000 barrels a day of condensate, or light crude, derived from gas production into fuels such as naphtha and jet fuel.

QatarGas signed a contract with Technip SA last year to design a second condensate refinery next to the first with a construction contract to be awarded in the third quarter.

The new hydrotreater will operate at half its capacity until the second refinery is operational, QatarGas said in today’s release. When the existing refinery’s kerosene hydrotreater is shut for maintenance, the new unit will be used to process the fuel, the company said.

The unit is being developed by the Laffan Refinery Co., a venture between companies including state-run Qatar Petroleum and Total SA.

--Editors: Rachel Graham, Raj Rajendran

To contact the reporter on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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