Oil & Gas and Petrochemical
Definition: The wording “Grass-roots” refers to a new plant to be built up from scratch. It has no connection with the process to be used. Comment: “Green field’ is the most common synonym of “Grass-roots”, both oppose to “Brown field” which is used for existing facilities. For more information and data about oil and gas […]
Formosa Plastics Corporation, U.S.A. announced to invest more than $1.7 billion at its Point Comfort, Texas site, USA, in new Olefins and Low Density Polyethylene (LDPE) facility. This will be the third major expansion at the Point Comfort site and will consist of a: New, grass-roots 800,000 MT/Y olefins cracker Associated 600,000 MT/Y propane dehydrogenation […]
Definition: A “Lump Sum Turn Key (LSTK) Contract” refers to bidding terms and conditions between the End User and an EPC which don’t allow any financial change for a given scope of work until the EPC is able the deliver the newly built plant in full operations to the End User. Comment: The benefit of […]
Chevron Phillips Chemical Corporation (CP Chem) has selected its existing Cedar Bayou facility in Baytown, Texas, USA, to build its new “world-scale” 1.5 million t/y ethylene plant. The ethane will come from the local shale gas resources considered now as a competitive and sustainable feed stock. The ethane cracker will use the Shaw technology and […]
Definition: The acronym “EPCM” stands for “Engineering, Procurement and Construction Management”. It may also be called “EPCS” for “Engineering, Procurement and Construction Services” or “PMS” for “Project Management Services”. As expressed clearly in the “PMS” definition, the “EPCM” refers to very different role from the “EPC” where the engineering company having the “EPCM” contract, supports […]
Definition: This acronym “FEED” stands for the “Front End Engineering and Design” of a project. The “FEED” may also be called “Basic Design” or even “Basic”. This phase follows the “Feasibility Study” to describe in more details the different technical and financial options considered during the feasibility study. The “FEED” will define the process, the […]
Definition: The “Feasibility study” is the first stage of a project during which the End User generally supported by an engineering company will investigate the most convenient technologies or processes to be used. This “Feasibility study” will also integrate all the corresponding costs aspects. The conclusions of the “Feasibility study” are barely a straight forward […]
Definition: An Oil & Gas and Petrochemical Project refers to an investment planned in the future by an End User or an operator. By definition the word “Project” shall be used until this investment turns into a formal order for execution when the “Project” becomes therefore a “Contract”. Comment: Compared with other businesses, the border line […]
