PetroLogistics awards McDermott with FEED contract

Source: press release, 12 August 2019

McDermott is a fully integrated provider of technology, engineering and construction solutions to the energy industry (photo: McDermott International, Inc.)
McDermott is a fully integrated provider of technology, engineering and construction solutions to the energy industry (photo: McDermott International, Inc.)

McDermott International, Inc. has announced it has been awarded a sizeable contract by PetroLogistics ll LLC to perform the front-end engineering design (FEED) services for a propane dehydrogenation (PDH) facility planned for the US Gulf Coast.

Under the scope of the contract, McDermott will assist in the development of a PDH plant to be constructed on the U.S. Gulf Coast. The plant has a design basis of 500 KTA.

“McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the US,” says Mark Coscio, McDermott’s Senior Vice President for North, Central and South America. “We will pull from our vast expertise in engineering to complete the FEED.”

“The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers,” says Nathan Ticatch, PetroLogistics II President. “As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation. We are excited to work with McDermott to develop a facility that can supply a solution to this need.”

McDermott was selected due to its strength in engineering and extensive knowledge in executing fluid catalytic cracking (FCC) projects. “We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project,” says David Lumpkins, PetroLogistics Chairman.

This award was reflected in McDermott’s second quarter 2019 backlog.

Note: McDermott defines a sizable contract as between USD 1 million and USD 50 million.