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    McDermott in line for contract at Russian gas chem complex

Summary

The US company described the gas chemicals complex as "a game changer for the Russian Federation market."

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Europe, Petrochemicals, Corporate, Contracts and tenders, News By Country, Russia

McDermott in line for contract at Russian gas chem complex

McDermott has signed a letter of guarantee to provide engineering and procurement services with China National Chemical Engineering and Construction Corporation Seven for an ethylene cracker at a gas chemicals project under development in Ust-Luga in northwest Russia, the US company said on October 18.

The gas chemicals complex, set to be the largest polyethylene integration project in the world, is being developed by Russia's Rusgazdobycha. It is due to start production by 2024, receiving ethane feedstock from an adjacent gas processing complex that Rusgazdobycha is developing with Gazprom.

McDermott will supply equipment and provide other services for its two-train ethane cracker, which will produce 2.8mn metric tons/year of ethylene. The technology that will be used has been licensed from McDermott's Lummus Technology unit.

Earlier McDermott provided front-end engineering design work for the facility.

The US company described the gas chemicals complex as "a game changer for the Russian Federation market."

"It is the biggest single contract in the global petrochemical field and will be hugely impactful in terms of job creation," its senior vice president for Europe, the Middle East and Africa, Tareq Kawash, said. "Our local presence and global resources align directly with its critical success factors."