Major growth of orders for Wärtsilä in the oil & gas industry
Wärtsilä Corporation, Trade and Technical Press Release, 14 November
The high prices for oil and gas and the estimation that world gas
consumption will double by year 2030, are encouraging significant new
investments in the global oil and gas industry both for new
exploration, production, transportation and refining infrastructures.
There are also major efforts by the United Nations and the World Bank
to reduce the flaring of associated gases from oil production within
the next five years. These developments mean that there is and will
be a growing demand for decentralized power plants in the oil and gas
sector. This in turn has resulted in several new contracts for
Wärtsilä during 2007 to supply power plants based on reciprocating
engines developed for various petroleum industry applications.
"This successful string of new orders is a result of Wärtsilä's
efforts during many years to develop the fuel flexibility of our
heavy-duty gas and diesel engines. The engines can today meet the
specific demands of the oil and gas industry by being able to burn
crude oils, associated gases and high viscosity fuels, such as
process bottom oils from refineries," says Mr Harry Lindroos,
Director of Oil and Gas of Wärtsilä Power Plants.
Odessa oil refinery, Ukraine
As an example, Wärtsilä was awarded a contract by Lukoil Energy & Gas
Ukraine Ltd in August 2007 to supply an 18 MWe diesel power plant for
the Odessa oil refinery in Ukraine. Due for delivery in spring 2008,
the plant will burn very high viscosity residual oils from the
refinery. The plant will be equipped with two Wärtsilä 20V32 diesel
generating sets, together with other equipment from Wärtsilä.
Crude oil fuelled power plant for the Russian ESPO-pipeline
In August 2007 Wärtsilä also received a contract to deliver power
plant equipment including a powerhouse for the new Russian main oil
pipeline ESPO running from Eastern Siberia to the Pacific Ocean and
exporting oil to the Far East.
This power plant consists of five Wärtsilä 16V32 crude oil-fired
engines with a total power of 35 MWe and it will be located near the
town of Olekminsk in the Sakha Republic of the Russian Federation.
The plant will produce both electricity and heat using crude oil from
the pipeline as fuel and feeding electricity to a pumping station
located nearby on the ESPO-pipeline.
The plant equipment will be delivered in summer 2008 from the Vaasa
factory by rail to Eastern Siberia and then by river vessels to its
final destination. The plant will be designed for independent
operation in demanding arctic temperature conditions.
Hungarian strategic gas storage project
In July 2007 Wärtsilä won a major contract to deliver gas engine
mechanical drives and auxiliaries for a compressor plant from MOL
Hungarian Oil & Gas Plc for underground gas storage at Szöreg, in the
Csongrád region of south Hungary.
Due to be completed by the end of 2009, the plant will be equipped
with five Wärtsilä 9L34SG gas engines driving gas reciprocal
compressors delivered by Cameron from US. The five engine-driven
compressors and two electric motor-driven compressors will compress
natural gas into underground storage caverns.
The plant will thus be employed to pump gas into storage during
periods of lower demand, mainly in the summer, to make it available
for times of high demand, as in the winter.
Gas-fired power plant for a Western Siberian crude oil pipeline
In Western Siberia, Wärtsilä was awarded a contract in early 2007 for
a 42.7 MWe gas-fired power plant for a Rosneft oil company crude oil
pumping station on the Vankor-Gubkinskoje oil export pipe in Russia.
The plant is due for completion at the beginning of 2009.
The Vankor pumping station will be equipped with six generating sets
powered by Wärtsilä 34SG gas engines using associated gas as the
fuel. Four sets will have 20-cylinder engines and two will have
nine-cylinder engines. The combined electrical output will be 42,696
52 MWe CHP plant in the Tarasovskoye oil field, Western Siberia
In October 2007, Wärtsilä began delivery of equipment for a 52 MWe
gas-fired combined heat and power (CHP) plant for the Tarasovskoye
oil field central processing facility in the Yamalo-Nenets
Autonomous District of the Tyumen region in Western Siberia. The
contract marks Wärtsilä's first CHP project of more than 50 MWe in
Russia and it was the first-ever power plant for the Russian state
oil company Rosneft.
The plant is being equipped with six Wärtsilä 20V34SG gas engines
with heat recovery system. The CHP plant will run on flare gases from
the oil wells. In addition, Wärtsilä will deliver the power plant
The contract was signed in November 2006 with OOO "Energotech",
Russia, a turn-key contractor to Rosneft-Purneftegaz, a 100%-owned
subsidiary of Rosneft, one of the top ten oil producers in the world.
The plant is due to be fully operational in summer 2008 supplying
heat and power to the oil field's processing facilities.
Rosneft selected a Wärtsilä gas engine-based power plant over a gas
turbine arrangement because of its flexible characteristics of
handling load variations and operational requirements. The gas
engines are also tolerant against fuel quality variations and are
thus well suited for oil field power generation.
Other advantages the Wärtsilä CHP plant will bring to the customer
are high efficiency, low emissions and being able to reduce flaring
as the associated gas will be used for the generation of power and
heat instead. As the Tarasovskoye field is located in Western
Siberia, Wärtsilä's extensive experience in Arctic areas also played
an important part in the customer's decision.
Wärtsilä in brief:
Wärtsilä enhances the business of its customers by providing them
with complete lifecycle power solutions. When creating better and
environmentally compatible technologies, Wärtsilä focuses on the
marine and energy markets with products and solutions as well as
services. Through innovative products and services, Wärtsilä sets out
to be the most valued business partner of all its customers. This is
achieved by the dedication of more than 15,000 professionals manning
130 Wärtsilä locations in close to 70 countries around the world.
For further information, please contact:
Public Relations Manager, Power Plants
Direct tel: +358 10 709 1456
Direct fax: +358 10 709 1425