McDermott International announced that it has been awarded a sizeable (McDermott defines a sizeable contract as between $1mn and $50mn.) technology contract by Formosa Chemicals Industries Ningbo for the technology licence and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit in Ningbo, China. This 10,000MTA unit will utilise AMS technology jointly licensed by Versalis and McDermott's Lummus Technology to recover specialty chemicals for niche market sale.
"This award represents the first licence of this AMS technology," said Leon de Bruyn, senior vice president of McDermott's Lummus Technology business. "The commercialisation of this technology illustrates the effectiveness of our continuous innovation process. Lummus works to provide our customers market-leading solutions to enhance their competitiveness; the addition of the AMS recovery unit will enable Formosa to recover this specialty chemical with unmatched purity, ultimately enhancing the operating margins while lessening the environmental footprint."
The award strengthens the ongoing collaboration, dating back to 1995, between the Formosa organisation and Lummus Technology. This technology incorporates many decades of operating and design experience by Versalis with Lummus design expertise.
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. Versalis (the chemical company of Italian energy major Eni) and Lummus have a long-standing collaboration to develop and offer a variety of petrochemical process licences.
This award was reflected in McDermott's second quarter 2019 backlog.
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