Chinese operator lets contract for petrochemical unit

Formosa Chemicals Industries (Ningbo) Co. Ltd., a subsidiary of Formosa Chemicals & Fibre Corp., has let a contract to McDermott International Inc. to provide technology licensing and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit at its petrochemical operations in Ningbo, Zhejiang Province, China.

The 10,000-tonne/year unit will be equipped with AMS technology jointly licensed by McDermott’s Lummus Technology and Eni SPA subsidiary Versalis SPA, McDermott said.

The service provider valued the contract award—which represents the first licensing of AMS technology—at $1-50 million, which was reflected in McDermott's second-quarter 2019 backlog.

McDermott did not reveal a timeframe for the project’s completion.

Contact Robert Brelsford at [email protected].