http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.83Change: -16.66
R/$ = 14.63Change: -14.49
Au 1286.66 $/ozChange: -0.59
Pt 1065.50 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 07, 2012

Engineering firm undertakes its largest refinery maintenance shutdown

Back
Cape Town|Construction|DURBAN|Sasolburg|Secunda|Africa|Building|Business|Chevron|CoAL|Contractor|Diesel|Engen|Engineering|Gas|Instrumentation|Kentz|Kentz Africa|Natref South Africa|Petrochemicals|Petroleum|PetroSA|PROJECT|Safety|Sustainable|System|Systems|Technology|Africa|South Africa|Natref Refinery|Sapref Refinery|Energy|Maintenance|Service|Services|Solutions|Systems|Utilities System|Carlo Marengo|Joseph Keogh|South Africa|Diesel
Construction||Africa|Building|Business|CoAL|Contractor|Diesel|Engen|Engineering|Gas|Instrumentation|Petrochemicals|Petroleum|PROJECT|Safety|Sustainable|System|Systems|Technology|Africa|||Energy|Maintenance|Service|Services|Solutions|Systems||||
cape-town|construction|durban|sasolburg|secunda|africa-company|building|business|chevron|coal|contractor|diesel-company|engen|engineering|gas|instrumentation|kentz|kentz-africa|natref-south-africa|petrochemicals|petroleum|petrosa|project|safety|sustainable|system|systems-company|technology|africa|south-africa|natref-refinery|sapref-refinery|energy|maintenance|service|services|solutions|systems|utilities-system|carlo-marengo|joseph-keogh|south-africa-region|diesel



Global engineering specialist solutions provider Kentz is undertaking its biggest-ever refinery maintenance shutdown at the Natref refinery in Sasolburg, this year.

The company notes that the petrochemicals facility will be completely shut down for maintenance purposes, which is rare, compared with the conventional sectional shutdowns usually performed each year.

Kentz says this is an exciting and high-profile contract, as this type of complete shutdown is only performed about once every 20 years.

Natref South Africa, a joint venture between petrochemicals firms Sasol Oil, which holds a 63.64% stake and Total South Africa, which owns the remaining 36.36%, is said to undertake the shutdown to rebuild the utilities system and the crude distillation and platformer units.

During the refinerywide shutdown, the facility will simultaneously undergo as much maintenance work as possible, which is not usually the case during a routine maintenance shutdown.

Kentz maintenance and shutdowns global business unit manager Carlo Marengo tells Engineering News that the company signed a five-year term agreement with Natref in February 2011, which facilitated the negotiation of the refinery shutdown contract.

The shutdown process undertaken by Kentz this year includes two contracts – that of scope development, planning and preparation, as well as the main shutdown.

Kentz is working with Natref on the scope development, planning and preparation to establish what will be done and how it will be done on site.

The second contract will entail a turnkey shutdown programme, which includes mechanical, piping, structural and electrical instrumentation upgrades, as well as maintenance.

The scope development, planning and preparation contract started in February and will be completed by the end of this month.

The second contract entails the refinery being shut down entirely for about 40 consecutive days. The shutdown will start in the second week of October and will be completed by the third week of November, says Marengo.

He adds that, although the contract is still in negotiation, about 2 000 people will be mobilised on the shutdown project.

Marengo says Kentz will strive towards achieving a safe and schedule-compliant shutdown at the refinery, which will maintain and ensure its already strong client relationship with Natref.

Kentz has worked with Natref since 2007 and has completed a number of yearly shutdowns. This has cemented a strong working relationship built on close alignment of business objectives focused around safety, plant integrity and schedule-compliance and has further enabled Kentz to grow its service offering and work with other business units from within the Sasol Oil group.

Long-Term Contracts
Maintenance and shutdown contracts at refineries tend to be awarded on a long-term basis rather than a short-term basis, notes Marengo.

Long-term contracts not only establish a sustainable relationship between client and contractor but also result in greater rewards for both parties when individual needs and objectives are understood.

Marengo says in the shutdown services industry, flexibility and responsiveness are key to meeting client’s requirements. In response to this, Kentz has developed a unique set of systems to fast-track the execution of this type of work.

As a result, Kentz has built a reputation in completing planned, unplanned and emergency shutdown work in all the crude oil and noncrude oil petrochemicals facilities in South Africa, including Cape Town, Mossel Bay, Durban, Secunda and Sasolburg.

Flexibility is also key in securing the long-term contracts, as clients expect the contractor to respond to the call of duty when required, he adds.

Besides undertaking work for petroleum group Engen and at its 180 000 bl/d Sapref refinery, the service provider simultaneously completed a shutdown, in February, for multinational energy corporation Chevron’s refinery, in Cape Town.

Its noncrude oil work included a multidisciplinary shutdown at national oil company PetroSA’s gas-to-liquids facilities, in Mossel Bay, in September 2009. It is also undertaking the planning and preparation for a turnkey shutdown at the facility in October.

Further, Kentz is providing services for Sasol’s coal-to- liquids facilities, in Secunda. The engineering contractor predominantly undertakes mechanical shutdown work at the facilities.

Marengo says the company’s staff numbers for shutdown works at the Sasol facilities in Secunda are expected to peak at about 2 500 people in September.

Kentz Africa construction director Joseph Keogh attributes the company’s strong and longstanding relationship with Sasol to its involvement in constructing the Sasol 2 and Sasol 3 sites in the 1980s.

He adds that Kentz is also on Sasol’s major project roll-out team for the Sasol wax expansion project in Sasolburg.

The R8.4-billion wax expansion project at the Sasol 1 site forms part of the larger Sasol expansion programme, which is estimated to cost R14-billion.

The first phase of the project will come into operation in 2012 and construction of the second phase is planned to start in 2014.

Keogh says Kentz, which will undertake structural, mechanical and electrical instrumentation work, has already been awarded contracts with a significant combined value.

He adds that a milestone was achieved by the solutions provider at the Sasol wax expansion project because it had reached one-million lost-time injury-free hours on the project in June.

Growth Strategy
Kentz intends to develop its shutdown business globally.

Kentz’ growth strategy entails extending the services it is currently providing to its clients in South Africa and building on its relationships with existing clients through the organic growth opportunities they offer.

“As refineries age, the facilities require more maintenance and, as refiners grow their business, the scope of the services they require usually increases. This is where contractors like Kentz are able to organically grow and expand naturally with the client,” explains Marengo.

Kentz’ growth strategy in South Africa also focuses on the legislated move to the Clean Fuels 2 specifications by 2017.

The Clean Fuels 2 specifications aim to reduce the aromatic and benzene content of petrol and include the reduction of sulphur from 500 parts per million (ppm) to 10 ppm and the lowering of benzene from 5% to 1% of volume, to be in line with Euro 4 emission standards for petrol and diesel.

Kentz will target the Sapref, Natref, Chevron and Sasol refineries should they decide to upgrade their facilities to be in line with the new specifications.

“The technology we currently supply to some refineries, which debottlenecks and streamlines the refinery process, is in line with the clean fuel legislation and should stand us in good stead to achieve our goal of targeting other local refineries,” concludes Keogh.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
While the International Monetary Fund (IMF) expects South Africa’s growth to halve to just 0.6% in 2016, growth in other oil-importing countries across sub-Saharan Africa is projected to remain relatively resilient at 5.2%. Nevertheless, the IMF is forecasting a...
Oil prices fell about 3% on Monday as production from the Organization of the Petroleum Exporting Countries (Opec) neared all-time peaks and record speculative buying in global benchmark Brent sparked profit-taking on last month's outsized rally. OPEC's crude...
The World Bank does not expect the recent rise in platinum prices to be sustained for the full year, with its latest ‘Commodity Markets Outlook’ report forecasting a 10% year-on-year price decline in 2016. The report, released on April 26, notes that precious metals...
More
 
 
Latest News
Updated 4 hours ago A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change. Titled ‘High and Dry:...
Human Settlements Minister Lindiwe Sisulu
The Department of Human Settlements (DHS) has approved 101 “catalytic” public–private partnership (PPP) projects, valued at around R340-billion – more than half of which would be sourced from the private sector – that would mobilise and coordinate private-sector...
By 2050, agricultural productivity in Africa has the potential to increase by 70%, through technological innovation leveraged by the Internet of Things (IoT). This would meet the continent’s growing food demand which, based on population growth, is set to grow by...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149