McDermott wins technology contract in Russia for two ethylene crackers

The project is the largest ethylene integration project in the world

Leon de Bruyn, senior vice president, Lummus Technology.
Leon de Bruyn, senior vice president, Lummus Technology.

McDermott International announced that it has been awarded a sizeable technology contract from Baltic Chemical Company (BCC) and a sizeable extended basic engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). The ethane cracking project is owned by Baltic Chemical Complex, a subsidiary of RusGazDobycha.

McDermott's Lummus Technology will provide both the process design package (PDP) engineering and the licence for its olefin production and recovery technology. Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene, representing approximately 40% of the world's capacity.

"Lummus Technology has been present in Russia for many years where we have been – and will continue to be – a reliable partner to our many clients here,'' said Leon de Bruyn, senior vice president, Lummus Technology. "We are excited to be selected for two world-scale ethylene plants by BCC and bring our reliable, high-yield and energy-efficient steam cracking technology to a project that has so much visibility in the petrochemicals industry."

The project is the largest ethylene integration project in the world. Located near Russia's shores at the Gulf of Finland, the natural gas processing chemical plant will be comprised of two ethylene cracking facilities, each with an annual capacity of 1.4 million tonnes.

"McDermott's end-to-end infrastructure and technology solutions are an important differentiator for operators in Russia,'' said Tareq Kawash, McDermott's senior vice president for Europe, Africa, Russia and Caspian. "The potential future pull-through opportunities related to the Lummus Technology portfolio make us uniquely positioned to execute this phase and future phases of the project."

McDermott has previously partnered with CC7 on the Afipsky hydrocracker project and the ongoing Lukoil delayed coker unit project.

The extended basic engineering work will primarily be executed from McDermott's downstream Centers of Excellence in The Hague and Brno, Czech Republic.

Work on the project will begin immediately and the contract award will be reflected in McDermott's fourth quarter 2019 backlog.

McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.

McDermott defines a sizeable contract as between $1mn and $50mn.

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