KBR awarded revamp contract for Korean ethylene plant

HOUSTON -- KBR, Inc. announced it has been awarded a technology licensing and basic engineering design (LBED) revamp contract by LG Chem for its Ethylene Plant at Daesan, South Korea.

Photo Courtesy of LG Chem.
Photo Courtesy of LG Chem.

Under the terms of the contract, KBR will provide license and basic engineering design services to expand the plant ethylene capacity by 230KTA to a total of 1,270KTA through the addition of two new SCORETM SC-1 proprietary furnaces and product recovery system modifications. This project is part of a larger LG Chem Daesan facility expansion that will enable the company to produce additional high value-added ethylene derivative products.

The LG Chem Daesan Ethylene Plant is a heritage KBR Licensed facility that had an original ethylene nameplate capacity of 350KTA. Through close cooperation between LG Chem and KBR, the facility has been revamped multiple times over the years allowing LG Chem to remain one of the leaders in ethylene production.

"We are delighted to continue our close cooperation with LG Chem and that KBR's cost-effective, industry leading capabilities will play a key role in LG Chem's growth strategy to maintain its market lead and secure feedstock for high value-added downstream products," said John Derbyshire, President, KBR Technology and Consulting (T&C).

Since 1990, over 21 new ethylene plants with a combined capacity of 13 million metric tons per year have been brought on-stream using KBR's cracking technologies and flexible plant designs to produce ethylene, propylene and other byproducts from a variety of feedstocks.

The contract value was not disclosed. Expected revenue was booked into backlog of unfilled orders for KBR's T&C Business Segment in Q4 2016.

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