BASF-Sinopec selects Shaw to build China ethylene plant

A consortium of BASF AG, China Petrochemical Corp. (Sinopec), and Sinopec subsidiary Yangzi Petroleum Corp. (YPC) has signed a letter of intent with the Shaw Group Inc., Baton Rouge, to provide engineering, procurement, and construction services for a 600,000 tonne/year ethylene plant and related facilities to be built at Nanjing, China. The LOI paves the way for negotiation of a turnkey contract.


A consortium of BASF AG, China Petrochemical Corp. (Sinopec), and Sinopec subsidiary Yangzi Petroleum Corp. (YPC) has signed a letter of intent with the Shaw Group Inc., Baton Rouge, to provide engineering, procurement, and construction services for a 600,000 tonne/year ethylene plant and related facilities to be built at Nanjing, China. The LOI paves the way for negotiation of a turnkey contract.

Shaw unit Stone & Webster Inc. will be responsible for engineering and procurement related to the contract, while it will subcontract the construction portion to an unnamed Chinese firm.

Plant equipment and materials included in Shaw's July 2000 purchase of Stone & Webster will be utilized, says Shaw (OGJ Online, July 10, 2000).

This plant is the first unit awarded for the planned $2.7 billion integrated petrochemical complex being developed by BASF and YPC in Nanjing. The complex is expected to go on-stream in 2004 or 2005.

"...This award is a significant, positive indication that activity in Asia, as well as in the process industry sector, is re-emerging," said J.M. Bernhard Jr., Shaw's chairman, president, and CEO.

The LOI is subject to certain approvals by Chinese authorities. BASF and YPC expect the final contract documents with Shaw to be executed as early as December.

More in LPG Markets