Bahrain: Technology Contract Bapco Signs 240 Million Dollar Catalyst Management Agreement with ART

Bahrain Petroleum Company (Bapco) has awarded the largest catalyst management agreement in its history to Advanced Refining Technologies (ART). Under the contract, ART will supply its Resid Hydrocracking catalyst technology to Bapco’s oil refinery in order to boost its processing capacity from 267,000 (b/d) to 380,000 (b/d).

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Columbia/USA – Advanced Refining Technologies (ART), the joint venture of US specialty chemicals and materials company W. R. Grace & Co. and US energy company Chevron, recently announced the award of a full-cycle catalyst management (FCM) agreement by state-owned Bahrain Petroleum Company (Bapco). The exclusive, 5-year agreement, which includes an option to renew for an additional five years, is valued at 240 million dollars, the largest catalyst management agreement ever signed in Bapco’s history.

As part of the Bapco Modernization Programme (BMP), Bapco will boost Bahrain’s oil refinery processing capacity from 267,000 (b/d) to 380,000 (b/d). In addition, ART will supply its Resid Hydrocracking catalyst technology for a wide variety of feedstocks to maximize bottom of the barrel upgrading. The technology is the industry-leading catalyst for metals capacity and sediment control. In addition, ART will provide FCM services for the reclamation of metals from spent catalysts.

The signing ceremony took place on August 11, 2021 at the Bapco Club in Awali, in the presence of Bapco’s Chairman and Chief Executive, and senior management and representatives from Bapco, ART, and Chevron Lummus Global (CLG).

Bapco’s Chairman and Chief Executive Dr. Dawood Nassif highlighted the significance of the deal. “Our new hydrocracking unit will convert 78 % of the vacuum residue feed into intermediate products, which will then be further processed into high margin kerosene and diesel. A key component is catalyst performance and management, and the unique agreement signed with ART, will be responsible for the total supply chain of catalyst from cradle to cradle. This agreement has taken over 18 months to develop and negotiate, and I thank all the parties involved in making this a success.”

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Jag Reddy, Managing Director of ART, said, “This award is significant. Bapco will benefit tremendously over the life of this agreement through maximum conversion, lower operating costs, reliability, and longer run lengths. Most importantly, it will free up valuable time and resources.”

When fully operational in 2023, the new Resid Hydrocracking unit known as 1RHCU will be the main profit centre for the Bapco Refinery. 1RHCU utilizes the LC-Fining process technology licensed from CLG, a joint venture between Chevron and Lummus Technology. The unit is a two-train design with a processing capacity of 65,000 barrels per day. Bapco’s application of this state-of-the-art technology will be the first within the Middle East. Less than a dozen of these units exists globally, and the Bapco unit will be one of the largest examples.

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