MULTINATIONAL engineering construction company Fluor Corporation has been awarded the contract for Valero’s Combined Heat and Power (CHP) cogeneration project at its Pembroke Refinery.

The 45-megawatt unit proposed by Valero will provide power for the refinery, as well as supplement the refinery’s steam demand, and has been first project of its kind to receive planning permission as a Development of National Significance process under the Planning (Wales) Act 2015.

The £127m project at Valero’s Pembroke Refinery has previously been hailed as “a vote of confidence in the Pembrokeshire site and the wider Welsh economy” by First Minister Carwyn Jones.

Al Collins, president of Fluor’s Energy & Chemicals business in Europe, Africa and Middle East, said: “We are pleased to assist Valero with this notable project that will enhance energy efficiency and sustainability at the refinery, which is of significant importance for the economy of Wales and, more particularly, to Pembroke.

“Fluor will utilise its in-depth cogeneration expertise, together with previous experience of working at the Pembroke Refinery, to deliver a capital-efficient project.”

Fluor’s scope includes design, procurement, construction and commissioning support for the new natural gas-fired combustion turbine generator system. The scope also includes substations, transformers, electrical and piping tie-ins and a fuel gas pipeline system.

The project will be executed on a cost reimbursable basis by an integrated engineering team located at Fluor’s office in Farnborough and at the Pembroke Refinery.

Refinery Public Affairs Manager Stephen Thornton said: “The CHP Unit project is a major investment in the Pembrokeshire economy, and part of Valero’s plans to help maintain the refinery’s viability for the long-term and secure future jobs in the refining sector in Pembrokeshire and West Wales.”