Oxy to join Chevron, Dow, Exxon and Shell US projects
On December 2012, Occidental Chemical Corporation (OxyChem) submitted a permit application to the US Environmental Protection Agency (EPA) for the construction of a new ethylene cracker at Ingleside in Texas, USA.
In parallel, its subsidiary OxyChem is the world largest producer of vinyl chloride monomer (VCM).
In this initiative, OxyChem is joining the series of ethylene cracker projects announced these last months by ChevronPhillips, Dow Chemical, ExxonMobil to be located in the same area, around the Gulf of Mexico and Shell Appalachia project, also in USA.
The VCM is used as primary feedstock to produce PolyVinyl Chloride (PVC) to produce packaging, pipes, coatings, wire insulation, anti-freeze and hundreds of other domestic and industrial applications.
Mexichem is planning to boost its production of PVC by 50% on the next four years, so it needs to secure its sourcing for the VCM.
CB&I to complete OxyChem cracker FEED work in 2013
This ethane feed will be combined with the recycled ethane from the ethylene fractionator and super heated before reaching the cracking furnaces.
These furnaces will be use the selective catalytic reduction (SCR) technology to control the NOx emissions.
– Ethylene technology license
– Front end engineering and design (FEED) services
CB&I contract includes also the basic engineering and licenses inheritated from Lummus technology for five short residence time (SRT) cracking heaters.
This hydrocarbon product will be sold and exported by trucks to refineries for gasoline blending.
Then the caustic resulting from the various chemical oxydations shall be collected through the waste water treatment unit.
The project will also include an additional flare system.
Estimated to require $1 billion capital expenditure, OxyChem expects CB&I to complete the FEED work in 2013 in order to prepare engineering, procurement and construction (EPC) contracts for 2014 with commercial production due to start on first quarter 2017.