NewGrade Energy Cooperative Upgrader

Historic Project: Groundbreaking Work From Earlier in Fluor’s History

Client: NewGrade Energy, Inc.

Location: Regina, Saskatchewan, Canada

Business Segment: Energy Solutions

Industry: Fuels

Services: Engineering and DesignProcurementConstruction

Map showing the location of NewGrade Energy Cooperative Upgrader

Executive Summary

Working with our partner Kilborn, Fluor set design records on NewGrade Energy Inc.'s Phase I and II contract. In our role as Support Engineering Contractor, our responsibilities included detailed engineering for the onsites, offsites and utilities revamp of the atmospheric residuum desulphurization units and hydrogen recovery and compression (ARDS and HRC). We were also responsible for the construction as well as the project and material management of the total project. This was the first of many Canadian megaprojects to be executed by Fluor.

Client's Challenge

NewGrade Energy Inc. needed an expansion and modernization of its Cooperative Refineries Limited, Regina plant. This involved the addition of new units and modifications to existing units to allow the refinery to maximize the processing of Saskatchewan heavy and medium crudes in place of the then-current current Alberta light crude feedstock.

Production of gasoline and diesel from heavy Saskatchewan crude required the addition of four major processing units to the existing refinery. The units, collectively known as the Upgrader, were the ARDS unit, the DHU (distillate hydroprocessing unit), the sulphur plant and the hydrogen plant.

Fluor's Solution

As managing contractor, the Fluor/Kilborn joint venture oversaw the engineering, procurement and construction of the project. This first heavy oil upgrader was built in conjunction with the existing cooperative refinery in Saskatchewan, Canada. The Upgrader converted 50,000 bbl/day of heavy crude into a lighter, higher quality product, which was used as feedstock for the cooperative refinery. In addition to overall management responsibilities, Fluor/Kilborn was responsible for the engineering, procurement and construction of the ARDS unit, HRC unit, offsites, utilities and existing refinery unit revamps.

During this project, Fluor provided full project services from concept development through detailed engineering.

Conclusion

The project was completed in two phases on schedule and on budget. At the time, the ARDS reactors were the heaviest pieces of equipment ever handled by the Port of Duluth, one of the largest inland seaports in the world. These units were also the heaviest ever moved by the Canadian Pacific railway.

Linear programming techniques were used to determine the optimal processing configuration. A design basis memorandum for the integrated facility and engineering design specifications (EDSs) for all new and revamped units were prepared using licensor basis process information and in house process simulations. We also achieved an exceptional on-the-job safety record during construction.