Energy infrastructure company CB&I is to construct an ethylene storage facility in Markham, Texas, for Ingleside Ethylene.
The engineering, procurement and construction (EPC) contract is valued at approximately $115 million.
Announcing the project award on Tuesday, CB&I said that it covers the surface facilities (including compression, dehydration, metering and associated pipe fabrication) at the salt cavern storage location.
The storage facility is integral with an ethylene cracker under construction in Ingleside, Texas. CB&I agreed previously to provide the license for the ethylene technology, five SRT (short residence time) cracking heaters and the engineering, procurement and construction of the ethylene cracker.
Ingleside Ethylene is a joint venture between Mexican chemical and petrochemical group Mexichem and Occidental Chemical Corp. (OxyChem), a subsidiary of Occidental Petroleum Corp.
The $1.5 billion ethylene cracker is being built at OxyChem's existing site in Ingleside, with pipelines and storage in Markham. It will have cracking furnaces with selective catalytic reduction technology to produce 1.2 billion pounds of ethylene per year, chemicals-technology.com reported.
"The ethylene cracker is a significant project both for OxyChem and Mexichem, and the award of this project reflects the quality of work CB&I has provided to date," commented Patrick K. Mullen, president of CB&I's Engineering & Construction operating group.
"It shows the customers' confidence in CB&I's ability to offer a more complete supply chain solution — from proven licensed process technology, fabrication and engineered products, all the way through to the EPC process."