Jan. 25–Houston oil field service company McDermott International has landed an engineering contract to help build a component for an ethylene plant in the southeast Asian nation of Indonesia.
In a statement released Thursday, the company that it has been awarded a technology contract by PT Chandra Asri Perkasa to build ethylene cracking heaters in Cilegon, Indonesia.
The heaters will be part of Chandra Asri Perkasa’s ethylene plant known as CAP2. Financial terms were not disclosed but McDermott confirmed that the contract is worth between $1 million and $50 million.
“Once complete, this complex will be one of the largest in Indonesia, helping to satisfy the country’s growing demand for petrochemical products,” McDermott Vice President Daniel McCarthy said in a statement
Seen a growth industry by the refining sector, ethylene plants are used to make ingredients for plastics and other materials.
A number of new ethylene plants are being built along the U.S. Gulf Coast where record natural gas production has created a surplus of ethane, the key feedstock for the plants. But there are also a growing number of such refineries in Asia.
The contract with PT Chandra Asri Perkasa comes less than a month after McDermott landed three polypropylene technology deals in India. Polypropylene is a key ingredient in packaging, plastics and other consumer goods.
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