Qatargas signs $96m deal for Laffan refinery project

Qatargas has signed an Engineering, Procurement and Construction (EPC) contract with Samsung Engineering for a diesel hydrotreater unit to boost cleaner fuels production at its Laffan refinery, the Qatari gas giant has said.

The unit will be able to process up to 54,000 barrels per stream day (BPSD) of ultra low sulphur diesel fuel when the second planned refinery at Laffan comes on stream in 2016 but will run at 50 percent capacity until then to help supply growing Qatari vehicle fuel needs.

"The surplus production will be exported, making it the latest addition to the State of Qatar's existing export portfolio in the energy sector," Qatari energy minister Mohammed al-Sada said in a statement after signing the deal.

The Samsung facility, which is expected to cost around QR350m ($96m), is designed to produce diesel with less than 10 parts per million (ppm) sulphur content with the Euro 5 specification and is expected to start up in the first quarter of 2014.

Korean industrial giant Samsung's first project in Qatar, the world's largest exporter or liquefied natural gas (LNG), will process Light Gas Oil (LGO) feedstock from the existing Laffan Refinery and the second refinery which is expected to be fully operational by early 2016.