Jan 6 2006
Shell Eastern Petroleum (Pte) Ltd ("SEPL") has appointed Mitsubishi Chemical Engineering Corporation (MEC) and Foster Wheeler Energy Limited (FWEL) for the basic design engineering package for a 750,000 t/a mono-ethylene glycol (MEG) plant.
The plant, to be located at Singapore Petrochemical Complex, Jurong Island, is expected to begin operations in 2009. It is part of a petrochemical project that is planned as a collaboration between Shell and the Singapore Economic Development Board.
FWEL is likely to provide engineering, procurement and construction management following final investment decision expected later this year.
Emphasising the role that technology will play in the design of the new MEG plant, Bill Rothwell, General Manager Ethylene Oxide/Glycols for Shell Chemicals said: "The new MEG plant will use Shell's OMEGA technology which incorporates Shell's proprietary EO technology for the front-end ethylene oxide unit and catalytic glycol production technology developed by Mitsubishi Chemical Corporation for the glycol production unit."
"Shell's project engineers are pleased to be working with both MEC and FWEL and look forward to the successful completion of this phase. We are confident that Foster Wheeler's experience in executing a similar EO/MEG plant for Shell's Nanhai joint venture complex in China will prove invaluable for our project here in Singapore," said Fang Yea Yee of SEPL, General Manager for the project.
"We look forward to building on our own demanding high standards and our excellent working relationship with Shell to deliver this new MEG plant safely and successfully. This award further confirms Foster Wheeler's position as one of the leading engineering, procurement and construction contractors in Singapore," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited.
The new MEG plant will use feedstock from Shell's proposed world-scale ethylene cracker located on neighbouring Bukom Island which is also scheduled for completion in 2009.
Shell has also awarded a separate contract for the basic design engineering packages for the modifications to Shell's Bukom refinery to another Foster Wheeler subsidiary, Foster Wheeler Asia Pacific Ltd. These modifications form a key aspect of the overall project which allows the integration of the ethylene cracker complex to the refinery to capture the benefits of oil-chemicals integration.
Both the cracker and the MEG plant would be part of an overall Singapore investment programme and is in line with Shell's overall strategy of 'more upstream and profitable downstream'. The integrated refining and petrochemicals complex will maximise potential site and location benefits to contribute to the profitability of Shell's downstream business through maximum integration and optimal supply and market logistics.
Shell had earlier announced the award of separate contracts for basic design engineering packages for the ethylene cracker complex on Bukom to ABB Lummus Global-Toyo Engineering Corporation JV.