Libya lets contract for grassroots refinery

Zallaf Libya Oil and Gas Co., a subsidiary of Libya’s state-owned National Oil Corp. (NOC), has let a contract to Honeywell UOP LLC to deliver front-end engineering and design (FEED) for the operator’s proposed 30,000-b/d South Refinery to be built in Aubari City, about 25 km east of Al Sharara oil field in southwestern Libya.

As part of the late-March FEED contract, Honeywell UOP will provide initial engineering works for the refinery’s planned units, including delivery of technology licensing for approved units, Zallaf and the NOC said in separate releases.

Following completion of this first phase of the proposed refinery’s development, Zallaf and the NOC said they will negotiate and award a second contract for engineering, procurement, construction, and commissioning (EPCC) works on the project to a potential contractor that must agree to allowing Honeywell UOP to supervise the installation process.

Details regarding specific units to be installed at the refinery have yet to be released.

Scheduled to be operable within 36 months, the South Refinery project will produce a mix of low-sulfur gasoline, diesel, jet fuel, fuel oil, as well as propane and butane, for Libya’s domestic transportation and industrial sectors, according to Zallaf’s website.

Rehabilitation plans

Alongside awarding of the FEED contract, the NOC also has engaged Honeywell UOP to evaluate and deliver recommendations for improving performance of Libya’s existing 120,000-b/d Zawia and 220,000-b/d Ras Lanuf refineries.

The proposed South Refinery project and improvements to existing Libyan refineries come as part of the NOC’s renewed focus on shoring up Libya’s in-country refining capacity to ensure self-sufficiency in fuel production to meet domestic demand and eliminate reliance on foreign imports, said Farhat Bengdara, chairman and chief executive officer of the NOC.