Grupa LOTOS Gdansk Oil Refinery Expansions - EPC

Client: Grupa LOTOS S.A.

Location: Gdansk, Poland

Industry: Fuels

Map showing the location of Grupa LOTOS Gdansk Oil Refinery Expansions - EPC

Executive Summary

Fluor has carried out 18 successful projects for the Gdańsk refinery since beginning studies for modernization and upgrades in 1994. A notable contract, for utilities and offsites at a total installed cost of $333.6 million, completed in 2010.

Client's Challenge

Grupa LOTOS (formerly Rafineria Gdańska S.A.) operates in both processing and selling petroleum products in Eastern and Central Europe. Poland's second-largest oil refiner and supplier, and one of the biggest retailers, has sought to consistently upgrade and revamp the Gdańsk refinery, increasing its nameplate capacity from ca.3 million tpa (as built in 1973/1974) to over 10 million tpa (2011).

The investment projects at the Gdańsk refinery have been generally focused on improvement of LOTOS' competitiveness in the market.

Other main goals were to meet European legislation requirements for low-sulfur diesel and gasoline and to allow processing of new feedstocks.

In 2007, LOTOS began its largest investment project, “10+ Programme,” with the target to expand refinery capacity, increase efficiency and reduce the impact of the refinery on the environment. Also, “10+” helped LOTOS to comply with European Union requirements for diesel specification, 10 ppm sulfur, which entered in force in 2009. At the completion of the “10+ Programme” in December 2010, the processing capacity of crude oil increased by 75% (from 6 mln tpa to 10.5 tpa), and diesel oil production achieved more than .5 million tonnes per year.

The company is a leading European producer of bitumens, lubricating oils and paraffins. It is also involved in offshore oil exploration and production in the Baltic Sea and the Norwegian seashore.

Fluor's Solution

Fluor has completed numerous projects for the Gdansk refinery, as summarized below with the year of contract award:

Studies to increase refinery capacity from 2.8 to 3.5 million tpa and then to 4.5 million tpa and to broaden product slate and reduce environmental impact (1996–1999).
Managing contractor and construction management contractor – refinery modernization and revamp (capacity increase from 3.5 mln tpa to 4.5 mln tpa) including new units and systems: Hydrocracker, Hydrogen Plant, Sulfur Complex; Naphtha Reformer; Naphtha Isomerisation Offsites and Utilities. The project achieved 2 million safe work hours and was completed on time and 10% under budget (1996).
FEED and lump-sum engineering, procurement and construction (EPC) for refinery expansion to implement residue upgrading project, with new facilities: CDU/VDU; Solvent Deasphalting unit; world-scale Mild Hydrocracker; Gasification unit, Rectisol®, CO-shift and methanation (to produce hydrogen for the refinery and syngas for new integrated combined cycle – IGCC). Four Fluor offices were involved in the project (2006).
Engineering, procurement and construction management for new or revamped utilities and offsites. Goal: increasing refinery capacity by 75%, to 10.5 million tpa of crude oil and achieving higher conversion ratio. Part of “10+ Programme.” Received award for quality and ‘Una Pro Posteritate” mention, for exceptional cooperation with the client. $333.6 million. The project achieved 1 million safe work hours in 17 months (2007).

Conclusion

Grupa LOTOS recognized Fluor's full commitment to a safe workplace and rewarded it. Fluor extended its reputation in Eastern Europe for quality engineering, procurement and construction management services. In addition, managing more than 1,100 employees with 58 management personnel, we achieved 1 million safe work hours through training, incentives, awards and a “zero tolerance” approach.

Our consecutive projects for Grupa LOTOS have proven the stability and sustainability of Fluor's quality of work with the client and with other companies working at the construction site.