McDermott Wins Chandra Asri Olefin Contracts

US contractor McDermott International has been awarded two “sizeable” technology contracts by a subsidiary of Indonesia’s Chandra Asri Petrochemicals (CAP). McDermott classifies a sizeable contract as between $1 million and $50 million.

The contracts for Chandra Asri Perkasa relate to a proposed second petrochemicals complex that will be located adjacent to CAP’s existing facilities in Cilegon.

McDermott’s scope of work includes licensing and basic engineering packages for Lummus Technology’s olefins processes. The steam cracker is expected to produce 1.1 million t/y of ethylene and 600,000 t/y of propylene based on Lummus Technology’s proprietary highly selective Short Residence Time (SRT) VII cracking heaters, as well as around 175,000 t/y of BD using extraction technology from BASF/Lummus.

Daniel McCarthy, executive vice president of McDermott’s Lummus Technology business, said Lummus has had a strong relationship with CAP for more than 25 years. He commented: “We licensed several technologies for their first complex and look forward to working with them on the second complex, which will boost petrochemical production to help meet domestic demand in Indonesia.”

In separate news, McDermott won another “sizeable” contract last month from Samsung Engineering Saudi Arabia Co. for the engineering, procurement and construction of several ethylene oxide/ethylene glycol storage tanks for Jubail United Petrochemical (JUPC).

Under the terms of the fixed lump sum contract, McDermott, through its CB&I business, will fabricate 23 storage tanks and modify two existing tanks at JUPC’s site in Jubail, Saudi Arabia. McDermott merged with CB&I in May, significantly broadening its service offering and geographic reach.