04-10-2013

JGC awarded EPC contract for major ethylene plant in America

JGC Corporation announced today that a contract has been signed between Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) and JGC/Fluor to provide engineering, procurement, and construction services for the company's ethane cracker to be built in Baytown, TX, United States as part of Chevron Phillips Chemical's U.S. Gulf Coast Petrochemicals Project. The facility will have an annual capacity of 1.5 million tons per year and will be the largest ethylene plant in the world. The project calls for engineering, procurement, and construction of the ethylene plant.  The project will be executed under a Lump Sum Conversion contract. The value of the contract was not disclosed.

The new ethylene plant features world-scale ethane cracking and is to be constructed at Chevron Phillips Chemicals existing facility in Baytown, Texas. JGC, as leader, established a joint venture with Fluor Corporation to execute the project. JGC will be leading engineering and procurement for the core facilities of the process plant, while Fluor will be leading engineering and procurement for the outside battery limit scope as well as direct hire construction for the entire cracker project.

The licensor of the ethane cracker is Technip, former Shaw Stone & Webster.

"JGC's strong track record of over 40 successful cracker projects and the exceptional team created with Fluor gives Chevron Phillips Chemical confidence that JGC/Fluor can meet our safety, quality, cost and schedule objectives for this critical project," said Ron Corn, Chevron Phillips Chemical's vice president of corporate planning and development. 

In 2004 and 2007, JGC was awarded two large-scale petrochemical projects in Saudi Arabia by companies in which affiliates of Chevron Phillips Chemical Company LLC had invested. The ethane cracker project in Baytown is a successive award achievement from the same client.

Numerous projects utilizing shale gas, such as petrochemical, LNG and GTL, are planned in North America. In order to meet client needs and to consolidate JGC's presence in the U.S., JGC will expand its subsidiary in Houston.  Meanwhile, JGC will continuously make efforts directed at participation in such future shale gas monetization projects.