McDermott signs MoU with Australia’s Darwin Clean Fuels

Engineering firm McDermott International has signed a memorandum of understanding (MoU) with Darwin Clean Fuels for a Clean Fuels Condensate processing plant.

According to the MoU, McDermott will provide feasibility study, technology, front-end engineering design (FEED) and engineering procurement and construction (EPC) services.

The Clean Fuels Condensate processing plant is situated in Darwin, Northern Territory, Australia.

The company will be responsible to move the project through a final investment decision (FID), following which McDermott will serve as the exclusive contractor for the condensate refinery.

McDermott International senior vice-president Ian Prescott said: “The refinery would leverage our proprietary technologies, including alkylation and sulphur 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.”

Condensate is a light petroleum liquid that condenses from natural gas and needs less processing to create quality transport fuel.

The Australian firm’s Clean Fuels Condensate refinery could deliver a cleaner fuel with condensate producing 75% lower CO₂ emissions than crude oil refineries.

Being a major producer of condensate, it is predicted that Australia would export 260,000bpd by 2020. This is expected to increase to 305,000bpd by 2030.

Darwin Clean Fuels managing director Tony Debenham said: “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 output 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.”

McDermott mentioned that the early phase engineering work will start immediately and will be completed by the first quarter of next year.