OxyChem, Mexichem choose contractor for new US ethylene cracker
CB&I was awarded the $1 billion engineering and construction contract to build an ethylene cracker with 1.2 billion lb/year of capacity at OxyChem's existing complex in Ingleside, Texas.
Ingleside Ethylene, the recently formed 50/50 joint venture
between US-based Occidental Chemical (OxyChem) and
Mexico-based Mexichem, announced Monday that CB&I was
awarded the approximately $1 billion engineering and construction
contract to build a
new cracker in Ingleside, Texas.
CB&I, based in The Woodlands, Texas, previously completed
the front end engineering and design work for the 1.2-billion
lb/year capacity ethylene cracker, which will be located at
OxyChems complex in Ingleside. CB&I's technology
operating group will
provide its proprietary cracking heaters for the project
is expected to create
approximately 1,700 jobs at the peak of construction
and more than 150
permanent jobs once operations begin.
After construction, OxyChem will operate the cracker.
With Monday's award, Ingleside Ethylene is maintaining the
schedule it announced on October 31, when OxyChem and
Mexichem formalized the 50/50 joint venture. The timetable
calls for the award of the construction and engineering
contract in the fourth quarter of 2013, construction
to begin in mid-2014
and the cracker to begin commercial operations in the first
quarter of 2017.
OxyChem and Mexichem have entered into a long-term strategic
supply relationship, in which essentially all of the ethylene
produced from the cracker will be consumed by OxyChem in the
manufacture of vinyl chloride monomer (VCM) utilizing its
existing VCM capacity.
VCM will be delivered to Mexichem to produce polyvinyl
chloride (PVC resin) and PVC piping systems.