Consortium awarded China petrochemical contract

A consortium of Bechtel Petroleum Chemical of the United States, Sinopec Engineering Inc. (SEI) of China, and Foster Wheeler Energy Limited (BSF), the UK subsidiary of Foster Wheeler Corporation, says that it has been awarded a project management contract to support a major petrochemical complex in southern China.

The contract was awarded by CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture of Shell Nanhai BV with 50% shareholding and CNOOC Petrochemicals Investment Limited (CPIL), also with 50%. CPIL is owned by CNOOC (90%) and the Guangdong Investment & Development Company (10%).

The project, which will be located in Huizhou in southern China's Guangdong province, will involve the construction of an 800,000 tons/yr ethylene cracker, together with downstream plants, utilities, and infrastructure. The petrochemical complex will produce propylene oxide, ethylene glycol, styrene monomer, polypropylene, high-density polyethylene, and low-density polyethylene. These plants will have outputs of between 200,000 and 560,000 tons/yr. Major construction work is expected to start in early 2003 and the complex is scheduled to start operations at the end of 2005.

Through an integrated team approach, the BSF consortium will assist CSPC with basic design of the project coordinated from the UK with project management and technical services based in Beijing.

Bill Dudley, president of Bechtel's Petroleum and Chemical unit, said, "The opportunity to work on CSPC is truly an extraordinary privilege. We are delighted to be working with the CNOOC and Shell joint venture team, SEI and Foster Wheeler on this project, which will be one of the largest construction sites in the world in the years ahead."

"CSPC is a very challenging project and SEI is looking forward to bringing our 'hands-on' experience to the project," said Yang Guang, president of SEI. "We are very pleased to be a part of the Bechtel and Foster Wheeler team, and to bring our resources to bear on this project."

"Foster Wheeler is proud to be able to bring our international project management and engineering expertise to this very complex world-scale project, and to contribute to the development of Chinese petrochemical, engineering and construction industries," said Ian Bill, chairman and chief executive of Foster Wheeler Energy Limited.

Bechtel, which was the first Western company to receive a construction license in China, has completed more than 80 projects in the country since 1979. Its Petroleum and Chemical division is based in Houston, Texas, USA.

Sinopec Engineering, Inc. is China's leading professional engineering and construction organization for refineries and petrochemical complexes, having completed over 450 such projects.

Source: Bechtel