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GE Oil & Gas to Supply Equipment for Heavy Oil Upgrader

Posted on January 21, 2008

GE Oil & Gas has been selected as a supplier of choice for a new heavy oil upgrader planned to be developed by SONHOE in Teesside, North East England.

With an estimated contract value of over US$200 million, GE Oil & Gas will provide SONHOE with reactors, centrifugal and reciprocating compressors, centrifugal pumps and air coolers. These items of equipment represent a significant proportion of the key equipment for the facility that underpins its performance reliability and capital cost.

The new plant will upgrade low quality heavy oil into premium quality, ultra low sulphur diesel, kerosene and petrochemical naphtha in a 200 000 bbl/day facility that is planned to come on stream in 2013/14. SONHOE plans to source the acidic, sulphurous and low API crudes from a number of regions including the North Sea, Latin America, Middle East and West Africa. The facility will comprise as its major components a 110,000 bbl/day hydro-cracking capability and a gasification complex that will produce over 500 tonnes/day of hydrogen & over 240,000 therms/day of synthetic gas.

Claudi Santiago, GE senior vice president and president and CEO of GE Oil & Gas said, “This is a major and important energy infrastructure project in the United Kingdom and we have been working with SONHOE for some time to understand their needs and validate the development. We have a good understanding of its critical success factors and, by entering into a supplier of choice agreement with SONHOE, we can work together to mitigate risk, support the technical design and achieve schedule advantage in terms of lead-time length and predictability. We are very pleased to be associated with this project and look forward to continuing our relationship with the SONHOE team”.

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