October 1997 Pump Industry Analyst

1990. Expansion and debot-

tlenecks have brought the

units up to current capacity.

BP A N D I P I C E X P A N D

S O L V E N T S

C A P A C I T Y

BP and PT Inter Petrindo

Inti Citra (IPIC), a company

owned by the Indonesian

majority shareholders in PT

Chandra Asri Petrochemi-

cal Corporation (CAPC),

have signed a memorandum

of understanding to build a number of solvents plants in

Cilegon, West Java. This follows a BP-CAPC

agreement in August to study

a polybutenes investment at

the CAPC site. As with the

polybutenes project, the

shareholding in the new sol-

vents joint venture, to be

known as PT Citra Pacific In-

ternational Esters, will be on a

50/50 basis. The first unit will

be a flexible esterification

plant producing up to 50 000

tonnes of ethyl or butyl acetate

per year, which will be on-

stream by late 1998. The proc-

ess uses acetic acid, which will

be supplied from a new plant

in Malaysia due onstream in

1999 in which BP has a 70 per

cent interest, and ethanol and

butanol feedstocks sourced

from within the region. The

plant will be designed with a

production capacity of up to

120 000 tonnes each year,

from 2000 onwards. Ethylene

will be supplied from the

nearby Chandra Asri Petro-

chemical Centre.

In addition, a feasibility study

is also being undertaken for a

third plant with an annual ca-

pacity of up to 25000 tonnes

of synthetic ethanol. This

product will be targeted to

supply those customers in the

pharmaceutical and speciality

end of the market who require

high purity product.

N E S T E S E L L S 5 0 %

H O L D I N G I N

B O R E A L I S

Finnish oil company Neste

OY has signed a letter of in- tent covering the disposal of

its 50 per cent interest in the

Copenhagen-based Borealis

petrochemicals group.

The buyers are Austrian oil

and gas company OMV and

the International Petroleum

Investment Company, which

handles Abu Dhabi 's foreign

investments in the oil and pet-

rochemicals sector. Due to

take effect from the New Year,

the sale calls for each of these

two companies to take half of

Neste's holding in Borealis.

Statoil will retain its 50 per

cent of the group. At the same

time, Borealis has signed a let-

ter of intent on the acquisition

of Austrian polyolefin pro-

ducer Petrochemie Danubia

(PCD), currently a subsidiary

of OMV.

ABB, K V A E R N E R T O

U P G R A D E P E R U V I A N

H Y D R O F A C I L I T Y

A unit of ABB Inc will par- ticipate in a US$3.5 million contract to increase the out-

put at Peru's Carhauquero hydroelectric plant by 12

MW. ABB's share of the project is

approximately US$2 million.

The contract has been

awarded to ABB Power Gen-

eration Inc's Hydro Power

business and to Kvaerner Hy-

dro Power Inc, San Francisco,

California, by EGENOR SA,

a recently privatised subsidi-

ary of Peru's government-

owned utility, Electroperu.

Under the terms of the agree-

ment, ABB will increase the

installed capacity of the

plant from 75 to 87 MW. This

deal follows a US$56 million

retrofit/expansion contract

awarded by EGENOR to Asea

Brown Boveri SA of Lima.

Peru in June. Under that con-

tract, a consortium that in-

cludes ABB Hydro Power

and Kvaerner will increase

EGENOR's Caqsn del Pato

facility by 90 MW.

E N R O N W I N S S O U T H

A M E R I C A N P O W E R

BID

A consortium of two indirect subsidiaries of Enron Inter- national Inc, a subsidiary of Enron Corp, is to provide 1000 MW of electricity to be transported from Argentina to Brazil under a 20-year power purchase agreement (PPA) with the Brazilian re- gional utilities, Eletrosul and Furnas. With a bid of US$27 50 per

megawatt hour, power deliv-

ery is expected by the fourth

quarter of 1999. Enron 's bid

includes the construction of

electric transmission lines and

a conversion station to allow

the two countries" power grids

to be connected for the first

time. Enron 's other activities

in the region include equity

participation in the Bolivia to

Brazil pipeline, ownership

and operation of Bolivia 's

Transredes natural gas trans-

portation system, and owner-

ship and operation of a

recently awarded 480 MW

natural gas-fired power plant

to be constructed in the Brazil-

ian state of Mato Grosso.

T E N A S K A B U Y S

M A J O R I T Y

I N T E R E S T IN

H I D R O E L E C T R I C A

B O L I V I A N A

Tenaska International LLC

has acquired a 75 per cent

interest in Hidroelectrica

Boliviana SA, a hydroelec-

tric generating company

which is developing 77.1

MW of electricity genera-

tion on the Taquesi River in

Bolivia.

Tenaska international is an af-

filiate of Tenaska Inc, an en-

ergy development company

headquartered in Omaha, Ne-

braska USA. Hidroelectrica

currently owns and operates

a 2.1 MW hydroelectric

plant and will construct three

additional 25 MW plants to

be commercial in 2000.

Hidroelectrica's remaining 25

per cent interest is owned by

International Mining Com-

pany SA and Hydro Power

SRL.

I E A C O U N T R I E S

S T R E N G T H E N

R E N E W A B L E

E N E R G Y P O L I C I E S

According to the recently

published study Renewable Energy Policies in lEA

Countries: Volume 1, Over- view, most IEA countries have strengthened their sup-

port for renewable energy use in recent years.

These actions grow out of in-

creasing concerns over global

warming and local pollution,

combined with a growing ap-

preciation of other benefits

from the use of renewables.

The report provides a compre-

hensive overview of these

policies, an assessment of

their effectiveness and a statis-

tical overview of the status of

renewable energy in IEA

Member countries.

The costs of renewable energy

systems are generally higher

than those of competing en-

ergy sources. Although these

costs have fallen recently,

they will have to fall still more

if renewable energy forms are

to become fully competitive

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