McDermott Wins Contract for Indian Oil Cracker Expansion
08.02.2023 By Tank Terminals - NEWS

August 2, 2023 [Rigzone]- McDermott International Ltd. has secured a project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) contract for Indian Oil Corporation Limited’s (IOCL) polypropylene expansion and new ethylene derivative unit project, McDermott said Monday.


IOCL’s Naphtha Cracker Expansion (Phase II) project is located at the PanipatRefinery and Petrochemical Complex, which is 62 miles (100 kilometers) from New Delhi. The value of the contract was not disclosed. The project will be managed and engineered from the company’s office in Gurugram, India, McDermott said in a press release.

Mcdermott said that the project would increase the ethylene production capacity of the naphtha cracker unit by approximately 20 percent, while the additional ethylene and propylene production would act as feed for downstream polymer units.

“McDermott is currently executing four other projects for IOCL, including the maleic anhydride (MAH) unit at the same site, allowing us to leverage our local resources and expertise while realizing synergies”, McDermott Senior Vice President for Global Operations Vaseem Khan said. “Furthermore, the project supports the growing demand for ethylene and propylene which will reduce imports and accelerate economic development in the area.”

In May, McDermott won a PMC contract from IOCL for the MAH unit at the same Panipat complex. McDermott’s scope includes project management and consultancy services for the unit, including front-end engineering design (FEED), review of engineering activities, construction supervision services, assistance in start-up, pre-commissioning, commissioning, performance guarantee test run, and project closure, according to an earlier news release.

“McDermott has a long-standing relationship with IOCL and is currently executing three large-scale projects at their Barauni and Haldia refineries”, Khan said. “Our unrivaled project management and execution capabilities, combined with our decades of experience in India, uniquely position us to successfully execute this project.”

IOCL’s Panipat complex is India’s first mega-scale MAH plant to manufacture chemical products, the news release said. MAH is used to make specialty products like polyester resins, surface-coating plasticizers, agrochemicals, and lubricant additives.

In a separate news release, McDermott said it secured a master services agreement (MSA) from Gevo, Inc. to provide front-end engineering and early planning services for Gevo’s development of multiple sustainable aviation fuel facilities in North America.

The first facility, Net-Zero 1, is planned to be constructed near Lake Preston, South Dakota. The Net-Zero 1 plant is expected to produce up to 65 million gallons of sustainable aviation fuel (SAF), diesel, and renewable gasoline, which are designed to have a lifecycle net-zero greenhouse gas footprint, the news release said.

Under the scope of the MSA, McDermott will provide engineering, execution planning, and pricing for the engineering, procurement, and construction (EPC) phase of Gevo’s Net-Zero 1 project. Mcdermott said it expects the MSA to lead to a final EPC agreement with Gevo, to be finalized with Gevo’s financing activities.

“Gevo is a premier provider in the fast-growing sustainable aviation fuel market”, Khan said. “This agreement marks the commencement of a collaborative relationship through which we will support Gevo’s low-cost delivery and speed-to-market goals for Gevo’s novel alcohol-to-jet process design which incorporates Axen’s ethanol-to-jet process. We believe we have the experience and expertise to deliver a standardized, modularized, and repeatable design for this and Gevo’s future Net-Zero projects.”

Earlier in July, McDermott said it secured a major contract from Qatargas Operating Company Limited to deliver engineering, procurement, construction, and installation (EPCI) for the North Field Production Sustainability (NFPS) Offshore Fuel Gas Pipeline and Subsea Cables Project, COMP1. McDermott defines a major contract as between $750 million and $1.5 billion.

The COMP1 project is part of the NFPS Offshore Compression Project involving the installation of new assets in Qatar’s North Field, including compression complexes at seven locations to sustain gas supply to the existing liquefied natural gas production trains into the future, according to an earlier news release.

The scope of the contract includes the installation of 118 miles (190 kilometers) of 32″ diameter subsea pipelines, 11 miles (17 kilometers) of subsea composite cables, 116 miles (186 kilometers) of fiber optic cables, and six miles (10 kilometers) of onshore pipelines.

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