Member Article

Crude oil powers ahead on Teesside

Plans for a £2bn crude oil processing plant on Teesside have taken a step forward with the announcement that two big names in the oil industry are coming on board. SONHOE Development Company has reached agreement with GE Oil & Gas and Chevron Lummus Global (CLG) in deals that aim to help the project become a reality on Teesside.

GE will provide SONHOE with equipment that will enable the plant to upgrade low quality, heavy oil into premium-quality low sulphur diesel, kerosene and naphtha. The agreement with CLG is for the technology needed to convert the heavy crude oil into diesel suitable for the European market.

SONHOE believes that the upgrader will bring between 2,000 and 2,500 construction jobs over a three to four-year period and 300-400 positions on site once the plant is operational, as well as an opportunity for around 1500 associated jobs.

Managing director Mike True said: “SONHOE is a company with ambitious but realistic and do-able plans. To have the support of GE and Chevron sends a message across the world that our confidence is not misplaced. “Two very important pieces of jigsaw are now in place and others are in the pipeline. “This upgrader is a fantastic opportunity for SONHOE, for the Tees Valley and for all the other companies champing at the bit to be part of it.”

Joe Docherty, chief executive of Tees Valley Regeneration, said: “This is a hugely important project for the Tees Valley and will contribute greatly to its regeneration and economic resurgence - bringing jobs, prosperity and international recognition by the oil industry.”

The project will take around seven years to bring to fruition and part of the planning process will include consultation with local people and key stakeholders.

This was posted in Bdaily's Members' News section by Ruth Mitchell .