CB&I said Tuesday it was awarded contracts from Occidental Chemical (Oxychem) for the technology license, basic engineering and front-end engineering and design (FEED) services for a proposed new ethane cracker.

The proposed cracker is anticipated to have a capacity of approximately 1.2 billion lb/year of ethylene, or just above 500,000 tpy.

Earlier this year, OxyChem signed a memorandum of understanding with Mexico’s Mexichem to evaluate a joint venture for the cracker, which would be built at Occidental’s existing site in Ingleside, Texas.

The scope of work for CB&I includes the basic engineering for the ethylene technology and five SRT (short residence time) cracking heaters from CB&I's Lummus Technology business unit.

Feedstock for the proposed cracker is anticipated to be ethane derived from domestic shale gas.

Financial terms were not disclosed. Previous reports have the cracker starting up operations in 2016.