JIANGSU LIYANG YUNLONG EQUIPMENT MANUFACTURING CO.

, LTD
No.1, Yunlong Road, Daitou Industrial Zone Liyang, Jiangsu Province,China

PROJECT CO-ORDINATOR
Ran Muwen
Mob: 0086-138-966-84003
Tel: 0086-519-87262218/0086-519-87669785
Fax: 0086-519-87669778
E-Mail: sman770@163.com
rmw@clyyl.com
Website: www:clyyl.com
Dear Sir，

We are pleased to present you with the enclosed project coverage and technical
description with commercial offer for 500KT/a diesel hydrogenation treatment plant. The
offer covers the engineering, procurement and construction for the complete process unit,
utilities. But infrastructure, civil foundation and buildings will be undertaken by owner
as per design requirement.

After preliminary calculation, the total project cost for the capacity of 500kt/a Diesel
Hydrogenation Treatment(including hydrogenation for jet fuel) on CNF and
Turnkey project basis including design, procurement, transportation, onsite installation,
commissioning till successful running and production is 95,000,000USD (details as per
general proposal and technical description)

Thank you for the opportunity to serve you.

Ran Muwen
Project Co-ordinator
JIANGSU LIYANG YUNLONG EQUIPMENT MANUFACTURING CO., LTD

2
 Project contents and Quotation for
500Kt/a Diesel Hydrogenation Project of Bashundhara
Oil and Gas Company LTD.

3
 1. Area Contents
This plan is for the diesel hydrogenation project with sulfuric acid as the
byproduct. The project is located in the asphalt factory of Bashundhara Oil &
Gas Company Ltd. in Bashbaria, Keraniganj, Dhaka and is the phase III
project of the asphalt factory.

The phase III project has new production units and new supporting facilities
such as storage and transportation, loading and unloading and auxiliary
public facilities, and some of them are shared with phase I and phase II
projects. The specific construction contents are shown in the table below:

Table 1 Construction Contents of Phase III Project

Main Items Capacity/ Description Remarks
Nominal
Diesel hydrogenation unit 500,000t/a
capacity
Unit for hydrogen production Nominal
5000Nm3/h
from naphtha capacity
Unit for sulfuric acid
Nominal
production from hydrogen 30,000t/a
capacity
sulfide
V-2201 and V-2202 are transformed to
intermediate tanks for hydrogenation
Kinetic energy transformation project, V-2501~ V-2504 are
of storage tank, addition of transformed to product tanks and Addition/
2000m3 tank of corresponding pipelines and pumps are transformation
nonconforming products transformed; pumps and pipelines for
unit for hydrogen production from
naphtha are added.
Addition of sulfuric acid/
2×300m3+2×100m3 dome roof tank New
ammonia tank
Tubbing and loading facilities 600 Nos. 100L/ day HDPE drum New
Cabinets chamber It is a specialized cabinets chamber for Addition/

4
 phase III project, and the operation transformation
from existing control building.
It is a specialized power distribution
Power distribution system New
system for phase III project.
Circulating water plant 1000 m3/h circulating water New
Demineralized water system 30t/h New
Nitrogen production through 420 Nm3/h instrument air, 300 Nm3/h
New
air compression compressed air, 200 Nm3/h nitrogen
Boiler system 10t/h New
Ground flare 25t/h New
Addition/
Fire fighting New fire fighting network
transformation
It aims to neutralize the sulfuric acid
Neutralizing tank New
leaking in accident.
Addition/
Sewage treatment station 300t/d
transformation
Addition of analysis and testing Addition/
Analysis & testing
equipment transformation
Pipe rack for phase III project is newly
Addition/
Pipe rack constructed and the original pipe rack
transformation
is to be transformed.
Addition/
Underground pipe network
transformation
Warehouse/maintenance
240m2 New
room

5
 2. Work Contents
2.1 Work Contents
EPC is adopted for contracting mode of the project. The work contents
mainly include process package, engineering design, procurement of
equipment and facilities, transportation to Chittagong Port of Bangladesh,
construction, commissioning before operation and operation (three months).
2.2 Division of Labor
Work contents of the project and the division of labor of the Owner and EPC
contractor are shown in the table below:
Table 2 Work Contents and Division of Labor

No. Name Work Contents Scope of EPC Contractor Remarks

1 Process Process data Provide complete version
package package of diesel of process data package
hydrogenation,
hydrogen
production and
sulfuric acid
production from
hydrogen sulfide
2 Engineering Contents listed Provide design documents The documents
design in Table 1 for each unit, including shall be
design basis (both parties reviewed by the
shall sign it for Owner.
confirmation), uniform
design regulations,
general layout plan,
process flow diagram
(PFD), detailed process
flow diagram (PID),
utility flow diagram

6
 (UFD), equipment
procurement document,
non-standard equipment
drawing, civil
construction drawing,
building construction
drawing, working
drawing for water supply
and drainage, electrical
working drawing,
instrumentation drawing;
supplier's drawings and
manufacturing
documents; completion
drawing.
3 Procurement Contents listed Other main and auxiliary The materials
in Table 1 materials such as for civil
equipment, steel engineering and
structures, pipelines and anti-corrosion
accessories, instruments materials are
and electrical parts. within the scope
Mechanical vulnerable of the Owner,
spare parts for one-year and this
operation of the project. quotation does
not cover
consumables
such as catalyst,
adsorbent,
desulfurizer and
various
chemicals.

7
4 Transportation Transportation to All contents within the
Chittagong Port procurement scope of
EPC Contractor
5 Construction Contents above ground The materials
for civil
engineering and
anti-corrosion
construction are
within the scope
of the Owner,
and the Owner
shall also be
responsible for
providing large
equipment for
construction,
handling the visa
of construction
personnel and
taking charge of
the
accommodation
of the personnel.
6 Accepting and Equipment The Owner shall
commissioning commissioning within the provide the
before scope of EPC Contractor water, electricity
operation and
consumables for
the
commissioning.
7 Equipment Guidance for Around 50 persons. After

8
operation operation commissioning
starting from all
raw materials
ready.

9
 3. Construction Duration
The implementation time schedule is as shown in the table below:
Table 3 Project Implementation Schedule

S/N Work Contents Expected Duration Time Remarks

1 Contract signing
One month after The 1st Technical party
2 Process package design
contract signing month in China
Construction drawing design,
Carried out
3 procurement, manufacturing,
alternatively
transportation
1 month after
First batch of ordering The 2nd
3.1 completion of
materials month
process package
0.5 month after The
Owner places an order ordering is 2.5th
available month
The
Manufacturing 2 months 4.5th
month
The
Transportation to Chittagong
2 months 6.5th
Port
month
1.5 months after The Equipment of
Second batch of ordering
3.2 completion of 2.5th long-period
materials
process package month supply
0.5 month after
The 3rd
Owner places an order ordering is
month
available
The 12th
Manufacturing 9 months
month

10
 Transportation to Chittagong The 14th
2 months
Port month
2 months after
Third batch of ordering The 3rd
3.3 completion of
materials month
process package
0.5 month after The
Owner places an order ordering is 3.5th
available month
The
Manufacturing 3 months 6.5th
month
The
Transportation to Chittagong
2 months 8.5th
Port
month
3 months after
Fourth batch of ordering The 4th
3.4 completion of
materials month
process package
0.5 month after The
Owner places an order ordering is 4.5th
available month
The
Manufacturing 3 months 7.5th
month
The
Transportation to Chittagong
2 months 9.5th
Port
month
4 months after
Fifth batch of ordering The 5th
3.5 completion of
materials month
process package
0.5 month after The
Owner places an order
ordering is 5.5th

11
 available month
The
Manufacturing 3 months 8.5th
month
The
Transportation to Chittagong
2 months 10.5th
Port
month
6 months after
Sixth batch of ordering The 7th
3.6 completion of
materials month
process package
0.5 month after The
Owner places an order ordering is 7.5th
available month
The
Manufacturing 3 months 10.5th
month
The
Transportation to Chittagong
2 months 12.5th
Port
month
8 months after
Seventh batch of ordering The 9th
3.7 completion of
materials month
process package
0.5 month after The
Owner places an order ordering is 9.5th
available month
The
Manufacturing 3 months 12.5th
month
The
Transportation to Chittagong
2 months 14.5th
Port
month

12
 9.5 months after The
Eighth batch of ordering
3.8 completion of 10.5th
materials
process package month
0.5 month after
The 11th
Owner places an order ordering is
month
available
The 14th
Manufacturing 4 months
month
Transportation to Chittagong The 16th
2 months
Port month
4 Construction
The first batch of personnel
The 6th
enters the site and starts to
month
work.
The second batch of
The 9th
personnel enters the site and
month
starts to work.
The third batch of personnel
The 12th
enters the site and starts to
month
work.
The fourth batch of personnel
The 15th
enters the site and starts to
month
work.
The
Completion of construction 22nd
month
5 Commissioning
The
Commissioning personnel
22nd
enter the site
month
Completion of The 23rd

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 commissioning + guidance month
training
1 month after the The 24th
6 Handover
acceptance month

Note: The schedule above is normal cycle based on similar Chinese domestic
projects just for reference only. For foreign projects, it shall plus the cycle of
transportation and local assisting conditions.

14
 4. Quotation
See the tables below for the investment to the project and see Table 8 for final
total investment.
The total investment to the project is shown in the table below:
Table 4 Investment to Diesel Hydrogenation Unit

S/N Name Remarks

Reactor and internals, tower and internals, containers, heat

1 Main equipment
Process valves, pipeline
2
and accessories
exchangers, air coolers, filters, flame arrester, silencers,
machine pumps, compressors, heating furnaces, etc.
Valves, safety valves, flanges, pipelines, pipe fittings,
pipeline filters and accessory fasteners

3 Thermal insulation Insulating materials for equipment and pipeline

Main pipe rack and frame

4 Pipe rack, frame and platform
of unit
Stop valves, regulating valves, flowmeters, liquid level
5 Instruments and facilities meters, pressure gauges, thermometers, instrument cables
and accessories
Electrical accessories such as power distribution cabinet
6 Electrical parts
and cables

7 Fire fighting system Fire fighting in unit area

8 Construction Construction of items 1~7

9 Process design

Design of construction
10
drawing
30,920,000 USD(Excluding consumables such as catalyst,
Total
adsorbent and chemicals)

Table 5 Investment Estimate to Unit for Hydrogen Production with Naphtha

15
S/N Name
1 Main equipment
Process valves, pipeline
2
and accessories
3 Thermal insulation
Main pipe rack and frame
4 Pipe rack, frame and platform
of unit
5 Instruments and facilities meters, pressure gauges, thermometers, instrument cables
6 Electrical parts
7 Fire fighting system
8 Construction
Process design,
9 construction drawing
design
Total
Table 6 Investment Estimate to Unit for Sulfuric Acid Production from
S/N Name
1 Main equipment
Process valves, pipeline
2
and accessories
Remarks
Reactor and internals, tower and internals, containers, heat
exchangers, air coolers, filters, flame arrester, silencers,
machine pumps, compressors, heating furnaces, etc.
Valves, safety valves, flanges, pipelines, pipe fittings,
pipeline filters and accessory fasteners
Insulating materials for equipment and pipeline
Stop valves, regulating valves, flowmeters, liquid level
and accessories
Electrical accessories such as power distribution cabinet
and cables
Fire fighting in unit area
Construction of items 1~7
16,390,000USD(Excluding consumables such as catalyst,
desulfurizer, adsorbent and chemicals)
Hydrogen Sulfide
Remarks
Tower and internals, reactors, furnace, containers, heat
exchangers, filters and pumps
Valves, safety valves, flanges, pipelines, pipe fittings,
pipeline filters and accessory fasteners
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3 Thermal insulation Insulating materials for equipment and pipeline

Main pipe rack and frame

4 Pipe rack, frame and platform
of unit
Stop valves, regulating valves, flowmeters, liquid level
5 Instruments and facilities meters, pressure gauges, thermometers, instrument cables
and accessories
Electrical accessories such as power distribution cabinet
6 Electrical parts
and cables

7 Fire fighting system Fire-fighting in unit area

8 Construction Construction of items 1~7

9 Process design

Design of construction
10
drawing

Total 15,320,000USD

Table 7 Investment Estimate to Storage and Transportation System

S/N Name Remarks

Tank

2,000m³nonconforming One set of 2,000m³storage tank, tank body, accessories

1
oil tank and pump;

2 Pump

Valves, flanges, pipeline, pipe fittings, pipeline filters,

Process valves, pipeline
3 accessory fasteners and corrosion prevention and
and accessories
insulating materials
Stop valves, flowmeters, liquid level meters, pressure
4 Instruments and facilities
gauges, thermometers, instrument cables and accessories

17
 Electrical accessories such as power distribution cabinet
5 Electrical parts
and cables

6 Fire fighting system Fire fighting in unit area

7 Construction Construction of items 1~6

Sulfuric acid/ ammonia tank

2 sets of 300m³storage tank; 2 sets of 100m³storage tank,

1 Main equipment
tank body, accessories and pump;
Valves, flanges, pipeline, pipe fittings, pipeline filters,
Process valves, pipeline
2 accessory fasteners and corrosion prevention and
and accessories
insulating materials
Instruments and facilities, Stop valves, flowmeters, liquid level meters, pressure
3
electrical contents gauges, thermometers, instrument cables and accessories

4 Construction Constructions of items 1~3

Pipping and loading facilities

1 Facilities in complete set

2 Workshop

3 Construction

Design of construction
All of the above
drawing

Total 9,450,000USD

Table 8 Investment Estimate for Utilities and Auxiliary Facilities

S/N Name Remarks

DCS, SIS, ESD system, control cabinet, clamps,

1 Cabinet chamber
configuration, instrument control cables
Low voltage power distribution system, cabinet, whole
2 Power distribution system
plant instrument control cables, plant lighting, terminal

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 pipe rack lighting

1000 m3/h circulating water tower + circulating water

3 Circulating water plant
pump
Demineralized water
4 30t/h processing capacity, complete set of system
system
Nitrogen production 420 Nm3/h instrument air, 300 Nm3/h compressed air,
5
through air compression 200 Nm3/h nitrogen

6 Steam boiler 10t/h complete set of system

7 Fuel oil storage tank 1×200m3 internal floating roof diesel oil tank, all

8 Ground flare 25t/h, complete set of system

9 Fire fighting Fire-fighting network

10 Neutralizing tank Lift pump, pipeline

11 Sewage treatment station 300t/d

12 Analysis & testing

13 Whole plant pipe rack Pipe rack and pipeline, 1000t estimated

Underground pipe
14 150t steel estimated
network

15 Construction Construction of items 1～14

Design of construction
16
drawing

Total 18,900,000

The total investment to the project is shown in the table below:

Table 9 Total Investment to Facilities

S/N Name Cost(USD) Remarks

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1 Diesel hydrogenation unit 30,920,000

2 Unit for hydrogen production from naphtha 16,390,000

3 Hydrogen sulfide to sulfuric acid production unit 15,320,000

4 Storage and transportation system 9,450,000

5 Utilities and auxiliary facilities 18,900,000

6 Commissioning and start-up 1,210,000 50 persons

7 Transportation to Chittagong 2,810,000

Total 95,000,000

Notes:

(1) The quotation is based on EPC basis, design, fabrication, construction as per
Chinese GB standards.
(2) All the civil works and infrastructure will be at Owner’s scope such as plant
foundation, underground lines, concrete buildings, roads, road lights, power
substation, standby generator etc..
(3) The visas, accommodation and meals will be provided by owner.
(4) The quotation is excluding consumables during construction such as power,
water, gas etc. During start-up and operation, catalysts, adsorbents for will be
prepared by owner or separately purchased from EPC party.
(5)Owner’s local importation formalities, visa for Chinese personnels, third party
inspection if any, local governmental expenses arose, port hoisting, local
transportation, onsite erection hoisting will be at owner’s scope.

20