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Asia-Pacific

12.01.2012  |  Meche, Helen,  Hydrocarbon Processing Staff, Houston, TX

Keywords: [construction] [engineering] [coal gasification] [olefins] [polymers] [urea] [substitute natural gas] [petrochemicals] [rubber]

KBR was awarded a license and process-design package contract for a new olefins-recovery unit in Yulin, Shaanxi Province, China.

The client owns an existing commercial plant of coal-to-olefins, which was put into production in 2011, and, is said to be the first and largest coal-to-olefin project in the world. It uses coal as the feedstock to produce polyethylene and polypropylene by coal gasification to methanol, then methanol to olefin (MTO), and then olefin polymerization.

This is the second MTO plant for the client with the capacity of 600 kiloton/yr of olefins (ethylene plus propylene). It is planned to be put into production in 2014.


Wacker Chemie AG is expanding its production capacity for vinyl acetate-ethylene (VAE) copolymer dispersions by constructing a new plant with a capacity of 40,000 metric tpy at its site in Ulsan, South Korea. This will almost double Ulsan’s VAE dispersion capacity, reportedly making the enlarged production complex one of the biggest of its kind in South Korea. Expected to start up in January 2013, the new plant will enable WACKER to meet accelerating demand for high-quality VAE dispersions, especially in Southeast Asia’s developing countries. Having budgeted around €10 million for the expansion project, WACKER is strengthening its position as one of the world’s major suppliers of VAE dispersions.


Stamicarbon, the licensing and IP center of Maire Tecnimont S.p.A., has a contract with China Chengda Engineering Co. (CHENGDA) for the supply of high-pressure proprietary equipment for the Shahjalal Fertilizer Project (SFP) in Bangladesh. This contract follows on from the license and PDP agreement signed at the beginning of 2012 with CHENGDA and China National Plant Import & Export Corp. (COMPLANT) for the design of this project’s urea-synthesis and urea-granulation plant.

The plant will be operated by Bangladesh Chemical Industries Corp. (BCIC) on behalf of the Bangladeshi government, and will be located adjacent to the existing Natural Gas Fertilizer Factory Ltd. (NGFF) at Fenchuganj, Sylhet, Bangladesh. The urea plant synthesis and granulation units will each have a capacity of 1,760 metric tpd.

The urea plant will use Stamicarbon’s Urea2000Plus technology, which features Stamicarbon’s unique pool reactor. Startup is planned for 2015.


Davy Process Technology (Davy), a wholly owned Johnson Matthey subsidiary, and Johnson Matthey have successfully started up a new substitute natural gas (SNG) plant owned and operated by Datang Energy Chemical Co. Ltd. (Datang) in Keshiketeng County, Inner Mongolia Autonomous Region, China.

The plant uses Davy’s SNG process technology in conjunction with Johnson Matthey’s purification and methanation catalysts to convert coal-derived synthesis gas into SNG, essentially methane, which will be transported via a new gas pipeline to Beijing. The plant capacity is 4 million Nm3/day, and it is one of three plants Datang is building at Keshiketeng, giving an overall site capacity of 12 million Nm3/day. The second plant is in the detailed engineering phase, and the third plant is in the final stages of approval.

The plant is one of six SNG plants that Davy and Johnson Matthey have licensed in China, and it is the first to start up and produce gas. Another Davy/Johnson Matthey SNG plant is expected to start up in 2012, with two further plants coming onstream in 2013.


Versalis, Eni’s chemical subsidiary, and Honam Petrochemical Corp. have signed an agreement for the development of an elastomeric production plant at its Honam facilities in Yeosu, South Korea.

The new site will use Versalis’ proprietary technologies and will have an elastomers production capacity of about 200,000 tpy. Startup is planned by the end of 2015. Versalis will provide its engineering services, commercial development skills and technical assistance, while Honam will provide the primary raw materials, operative sites and existing structures.


KBR has a license and process-design package contract from Jiutai Energy Group for its methanol-to-olefins (MTO) recovery project in Dalu New Area, Zhungeer Banner, Ordos, Inner Mongolia, China.

KBR’s MTO technology will be used in the recovery process for Jiutai’s 600-kiloton/yr ethylene and propylene unit. The recovery process will take 1,800 kiloton/yr of methanol to the MTO reactor and convert it. The effluent from the MTO reactor will then enter KBR MTO recovery to separate 600 kiloton/yr of polymer-grade ethylene product and propylene product.


A subsidiary of Foster Wheeler AG’s Global Engineering and Construction Group has an engineering, procurement and construction management (EPCm) contract from LANXESS Butyl Pte. Ltd. for a new neodymium polybutadiene (Nd-PBR) rubber plant to be built on Jurong Island, Singapore. This award follows Foster Wheeler’s successful completion of this project’s front-end engineering and design earlier this year. Foster Wheeler’s scope of work is expected to be completed in 2014.

The new facility, which LANXESS states is expected to be the largest of its kind in the world, will produce 140,000 tpy of Nd-PBR, and will include process and finishing buildings, a central control room, a substation and a tank farm. It will be built alongside LANXESS’ 100,000-tpy synthetic butyl-rubber plant, the largest facility of its type in Asia, due to start up in 2013, and for which Foster Wheeler is also the EPCm contractor.


CB&I has a contract from Huating Coal Group Co., Ltd., for the license, basic engineering and related services for a polypropylene plant at Huating Industrial Development Area, Gansu, China.

The plant will use the Novolen advanced gas-phase polymerization technology to produce the full scope of polypropylene homopolymers, random copolymers and impact copolymers. The plant will be part of an integrated 600,000-metric-tpy coal-to-methanol project, which started production at the end of 2010. The 200,000-metric-tpy polypropylene plant is expected to start up in 2014.


Major construction has begun on the Prelude floating liquefied natural gas (FLNG) project, reported to be the world’s biggest offshore floating facility. Shell has celebrated the cutting of first steel for the facility’s substructure with joint-venture participants (Inpex and KOGAS) and lead contractor (the Technip Samsung Consortium) at Samsung Heavy Industries’ Geoje shipyard in South Korea.

When completed, the Prelude FLNG facility will be 488 m long and 74 m wide, reportedly making it the largest offshore floating facility ever built. When fully equipped, and with its cargo tanks full, it will weigh more than 600,000 tons. There will be over 3,000 km of electrical and instrumentation cables on the FLNG facility, the distance from Barcelona to Moscow.

The Prelude FLNG facility will be deployed in Australian waters over 200 km from the nearest point on the coast. It will produce gas at sea, turn it into liquefied natural gas, and then transfer it directly to the ships that will transport it to customers.


JX Nippon Oil & Energy Corp. (JX), Sanyo Chemical Industries Ltd.(SCI) and SCG Chemicals Co., Ltd. (SCG Chemicals) will jointly conduct a feasibility study (FS) for a new 20,000-tpy ethylidene norbornene (ENB) plant in Rayong, Thailand. JX and SCI, together with SCG Chemicals, have signed on the FS agreement to study the project’s commercial feasibility.

ENB is an important third component in the manufacture of EPDM, an advanced heat- and weather-resistant synthetic rubber. The demand for ENB is forecasted to increase mainly in Asia, in accordance with the growth of Asia’s car industries.

The three parties will proceed with the FS for one year, with the target of commencing commercial operations in 2016.


Toray Industries, Inc. has decided to establish a new resin-compounding base at its subsidiary, P.T. Indonesia Toray Synthetics (ITS) in Indonesia. With the establishment of the facility, ITS will reportedly be the first resin-compounding base by an engineering-plastic manufacturer in Indonesia.

Toray will invest approximately 600 million yen for installation of the 6,000-tpy nylon and polybutylene terephthalate (PBT) resin-compounding facility, which is expected to start operation in November 2013. HP



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