Methanex lets FEED plus EPCM option contract for Geismar 3 methanol plant

July 31, 2018
Methanex Corp. has let a contract to KBR to provide front-end engineering design services for a 5,000-tonne/day methanol plant to be built adjacent to its existing methanol plants in Geismar, La.

Methanex Corp., Vancouver, BC, has let a contract to KBR Inc. to provide front-end engineering design services for a 5,000-tonne/day methanol plant to be built adjacent to its existing methanol plants in Geismar, La. (OGJ Online, Jan. 27, 2015).

As part of the reimbursable engineering, procurement, and construction management option contract, KBR will work closely with Methanex to provide FEED services for the third methanol operating plant at the Geismar site, the service provider said.

KBR said it expects to complete FEED work on the project over the next 12 months, with final investment decision on the third plant due by mid-2019.

Pending FID by Methanex to proceed with adding the potential third plant at Geismar, KBR will then have an opportunity to provide detailed EPCM services for the project, the service company said.

Estimated revenue associated with this project will be booked into backlog of unfilled orders for the service provider’s hydrocarbons services business segment in this year’s third quarter, KBR said.

Methanex currently operates two methanol plants at Geismar, each with a production capacity of 1 million tonnes/year.

Contact Robert Brelsford at [email protected].