Aug 14 | 2019
PetroLogistics II Awards FEED contract
Offshore engineering contractor McDermott International has signed an agreement to develop a propane dehydrogenation plant on the U.S. Gulf Coast.
The front-end engineering and design, or FEED, contract was awarded by PetroLogistics II and will support construction of a new facility with capacity of 500 kilotonnes per year.
"McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the U.S.," said Mark Coscio, McDermott's senior vice president for North, Central and South America. "We will pull from our vast expertise in engineering to complete the FEED."
McDermott said the contract was valued at up to US$50 million.
FCC Experience
Under the terms of the FEED contract, McDermott will apply its existing knowledge completing fluid catalytic cracking projects to build a plant capable of meeting growing U.S. demand for propylene.
"The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers. As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation,” said Nathan Ticatch, PetroLogistics II president.
Headquartered in Texas, McDermott is one of the largest integrated onshore-offshore EPC companies in the world, with operations in more 54 countries and a workforce of about 32,000 employees.
Q2 ‘Mixed’ Results
The company recently reported "mixed" results for the second quarter of the year, but booked US$7.3 billion of new awards and book-to-bill ratio of 3.4x, indicating a strong forward momentum for the remainder of the year.
"Although the company reported mixed results for the second quarter of 2019, we are encouraged by the record-setting level of backlog and new awards … This is a year of transition as we position McDermott to fully optimize the benefits of our combination with CB&I and as we steadily advance toward completion of the Cameron and Freeport projects," said David Dickson, CEO of McDermott.
The company signed a settlement agreement earlier this month for its Cameron LNG project, calling it a "testament to the mutually productive relationship" it had built with the customer, a legacy client of CB&I.
The front-end engineering and design, or FEED, contract was awarded by PetroLogistics II and will support construction of a new facility with capacity of 500 kilotonnes per year.
"McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the U.S.," said Mark Coscio, McDermott's senior vice president for North, Central and South America. "We will pull from our vast expertise in engineering to complete the FEED."
McDermott said the contract was valued at up to US$50 million.
FCC Experience
Under the terms of the FEED contract, McDermott will apply its existing knowledge completing fluid catalytic cracking projects to build a plant capable of meeting growing U.S. demand for propylene.
"The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers. As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation,” said Nathan Ticatch, PetroLogistics II president.
Headquartered in Texas, McDermott is one of the largest integrated onshore-offshore EPC companies in the world, with operations in more 54 countries and a workforce of about 32,000 employees.
Q2 ‘Mixed’ Results
The company recently reported "mixed" results for the second quarter of the year, but booked US$7.3 billion of new awards and book-to-bill ratio of 3.4x, indicating a strong forward momentum for the remainder of the year.
"Although the company reported mixed results for the second quarter of 2019, we are encouraged by the record-setting level of backlog and new awards … This is a year of transition as we position McDermott to fully optimize the benefits of our combination with CB&I and as we steadily advance toward completion of the Cameron and Freeport projects," said David Dickson, CEO of McDermott.
The company signed a settlement agreement earlier this month for its Cameron LNG project, calling it a "testament to the mutually productive relationship" it had built with the customer, a legacy client of CB&I.
