Lyondell lets contract for Chinese chemical plant

June 13, 2007
Lyondell let a contract to Jacobs Engineering for design services related with the compnay's venture with Sinopec Zhenhai Refinery & Chemical for a POSM plant to be built in Ningbo.

By OGJ editors
HOUSTON, June 13 -- A unit of Lyondell Chemical Co. has let a contract to Jacobs Engineering Group Inc. for engineering design services related with Lyondell's 4.44 billion yuan venture with Sinopec Zhenhai Refinery & Chemical for a propylene oxide-styrene monomer (POSM) manufacturing facility to be built in Ningbo, China.

Jacobs is committed to prepare the technical details of Lyondell's project design package for what is to be the largest POSM facility in the world.

The facility is expected to produce 274,000 tonnes/year of propylene oxide and 620,000 tonnes/year of styrene monomer. It is slated for operation in 2009.

Lyondell earlier said it is to get a share of the propylene oxide (PO) profitability from the plant in exchange for its POSM technology and overall operating and technical experience, and the two partners will jointly market all PO manufactured by the new facility (OGJ, May 7, 2007, Newsletter).