US-based engineering solutions provider McDermott has secured a technology contract from Baltic Chemical Company (BCC) and an extended basic engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company (CC7).

The company has been contracted for the ethane cracking project, owned by Baltic Chemical Complex, a subsidiary of RusGazDobycha.

Under the contract, McDermott’s Lummus Technology will provide both the process design package (PDP) engineering and the license for its olefin production and recovery technology.

The ethylene steam cracking process developed by Lummus Technology is widely applied for the production of polymer-grade ethylene, representing approximately 40% of the world’s capacity, said the company.

Lummus Technology senior vice president Leon de Bruyn said: “Lummus Technology has been present in Russia for many years where we have been—and will continue to be—a reliable partner to our many clients here.

“We are excited to be selected for two world-scale ethylene plants by BCC and bring our reliable, high-yield and energy-efficient steam cracking technology to a project that has so much visibility in the petrochemicals industry.”

McDermott will construct two ethylene cracking facilities

The company said that the project is located near Russia’s shores at the Gulf of Finland, and marks the largest ethylene integration project in the world.

The natural gas processing chemical plant is planned to comprise two ethylene cracking facilities, each with 1.4 million tonnes annual capacity.

McDermott intends to primarily execute the extended basic engineering work from its downstream centres of excellence in The Hague and Brno, in Czech Republic.

The company said that it has previously worked together with CC7 on the Afipsky Hydrocracker project and the ongoing Lukoil Delayed Coker Unit project.

Furthermore, the company is expected to start the works at the project immediately and will include the award of the contract in fourth quarter 2019 backlog.

McDermott Europe, Africa, Russia and Caspian senior vice president Tareq Kawash said: “McDermott’s end-to-end infrastructure and technology solutions are an important differentiator for operators in Russia.

“The potential future pull-through opportunities related to the Lummus Technology portfolio make us uniquely positioned to execute this phase and future phases of the project.”