SONHOE to build processing plant

SONHOE Development Company has announced plans to build a £2bn crude oil processing facility in the Tees Valley


SONHOE Development Company, which is headquartered in London, has announced plans to build a £2bn crude oil processing facility in the Tees Valley in the North East of England.



According to SONHOE the facility will to process 200,000 barrels a day of heavy crude oil into high quality, low sulphur diesel, petrochemical feedstock naphtha and kerosene for use in the UK or for export.



The company said the site would also be one of the largest hydrogen producing plants in Europe.



The development would create up to 2,500 construction jobs over a three to four year period, with a potential 400 core employment positions on site once the plant is operational, SONHOE estimates there could be an opportunity for 1,500 associated jobs in the future.



The project has the support of the Department for Business, Enterprise and Regulatory Reform (BERR), UKTI, One NorthEast, Tees Valley Regeneration and Redcar and Cleveland Borough Council as well as key industrial companies in the area.



The development timescale through to completion is five to seven years. The initial planning process includes consultation with the local community and other key stakeholders.



SONHOE plans to source the heavy oil from the North Sea, Latin America, the Middle East, Africa and other regions of the world.



The next stage of the development is to enter into Front End Engineering Design (FEED) with associated activities to progress permissions, commercial arrangements for crude oil supply and infrastructure preparation.