A new clean fuels condensate processing plant is set to be built in Darwin, Northern Territory and the $1.2 billion project is anticipated to support up to 400 jobs during its construction and about 140 ongoing jobs once operational.
Darwin Clean Fuels will develop, build and operate the processing plant, with McDermott as its partner to deliver the new facility at Middle Arm.
McDermott will undertake the feasibility study, technology, front-end engineering design (FEED) as well as engineering, procurement and construction (EPC) of the processing plant.
“The refinery would leverage our proprietary technologies, including alkylation and sulfur recovery, and is evidence of McDermott’s technology-led EPC capabilities. Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments,” McDermott Senior Vice President of Asia Pacific Ian Prescott said.
Initial works will commence immediately and it will involve a feasibility study and early engineering work.
Major construction on the new clean fuels condensate processing plant is expected to begin in 2021. Once operational in 2023, the facility will inject over $360 million a year into the Northern Territory economy.
“Darwin Clean Fuels looks forward to the next phase of the project with McDermott to move it toward a final investment decision. The Clean Fuels Condensate Refinery is a great, long-term investment in Australia, creating jobs and contributing to the economy by reducing the reliance on fuel imports. It also creates an opportunity to maximise both the input and use of this great resource by refining condensate onshore in Australia rather than exporting it overseas for processing it into petrochemicals or refinery blendstock, helping to address the long-term fuel security issues that Australia faces,” Darwin Clean Fuels Managing Director Tony Debenham said.
Condensate is considered a cleaner alternative to crude oil as it is a light petroleum that condensates from natural gas and it needs less processing to create quality transport fuel.
Darwin Clean Fuels is aiming to produce premium transport fuels for Australia. This includes high octane petrol, diesel, jet fuel, LPG and marine bunker fuel to new 2027 Euro standards.
The new clean fuels condensate processing plant is set to be the first of its size to be built in the country in over 40 years and it is the first in Australia to entirely use condensate as its feedstock.
“The Northern Territory’s incredibly bright economic future is within reach. Private sector investment creates strong economic growth and more local jobs - especially more permanent jobs. This is how we break out of the Territory’s boom and bust cycle, and this is why the Territory Labor Government will support private enterprises wanting to do business here.
“McDermott and Darwin Clean Fuels believe in the Territory’s economy and are keen to work with the government to invest in Territory jobs - adding an estimated $360 million per annum to the Darwin economy once operational,” Chief Minister Michael Gunner said.
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Source: Northern Territory Government Newsroom; McDermott; 9 News; Hydrocarbon Engineering