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Technip-Odebrecht-ICA Fluor win $2.7 billion Veracruz Ethylene XXI

Braskem Idesa awards petrochemicals EPC contract

Braskem Idesa S.A.P.I. (Braskem Idesa) awarded the engineering, procurement and construction (EPC) contract to Technip-Odebrecht-ICA Fluor for the Veracruz  Ethylene XXI petrochemical complex in Mexico.

Braskem Idesa is a joint venture between the Brazilian chemical company Braskem and Grupo Idesa with working interest are shared:

 – Braskem 65% is the operator

 – Idesa 35%

Braskem belongs to Petrobras and is actually the largest petrochemical company in South and Central Americas.

Grupo Idesa is the largest petrochemical company in Mexico.

In 2009, the joint venture Braskem Idesa had won the auction organized by the Mexican national oil company Pemex to build an olefin complex in the city port of Coatzacoalcos in the municipality of Nanchital , in the State of Veracruz, Mexico.

Pemex to supply ethane to Braskem Idesa cracker

Pemex will supply 66,000 b/d of ethane as feedstock to the Braskem Idesa petrochemical complex to produce ethylenepolyethylene and derivatives.

In return Braskem Idesa will supply ethylene back to Pemex to produce polyethylene as well.

In parallel, Pemex and Braskem signed an agreement for the supply of 375,000 t of naphtha.

In 2011, Technip from France had been awarded the FEED contract for the ethylene, the high density polyethylene.

Oderbrecht and ICA Fluor had been awarded the FEED contrat for the offsites and utilities.

On first half 2012, Technip, Oderbrecht and ICA Fluor completed their respective FEED work.

According to the size of the project, the bidding engineering companies created joint ventures from which Braskem Idesa selected Technip – Odebrecht – ICA Fluor for the engineering, procurement and construction (EPC) contracts with interest shared by:

 – Technip 40%

 – Oderbrecht 40%

 – ICA Fluor 20%

The Technip – Odebrecht – ICA Fluor  joint venture will be based in Nanchital, close by Coatzacoalcos, in the State of Veracruz, Mexico, and will split the EPC work between the partners main offices as following:

 – Technip from France will design and build the ethane cracker and ethylene production in its offices of Roma in Italy and  Lyon in France.

 – Odebrecht and ICA Fluor will execute the offsite and utilities from their offices in Mexico City. 

The Braskem Idesa Ethylene XXI project requires a total of $3.3 billion capital expenditure from which the engineering, procurement and construction (EPC) contract awarded to Technip – Odebrecht – ICA Fluor represents $2.7 billion including:

 – 1 million t/y ethane cracker using Technip licenses

 – One unit of 400,000 t/y of high density polyethylene (HDPE) using Ineos Innovene S slurry  technology

 – A second unit of 350,000 t/y of high density polyethylene (HDPE)

 – 300,000 t/y of low density polyethylene (LDPE) unit based on LyondellBasell’s Lupotech T process technology

 – 150 MW Power generation plant

 – Storage and waste treatment plant

 – Utilities

 – Control room and ancilary buildings

 – 1 million t/y polyethylene multimodal logistic platform combining train and truck bulk transportation

Technip-Obdebrecht-ICA Fluor ordered long lead items (compressors and steam turbines) to MHI and GE

In the Technip – Odebrecht – ICA Fluor joint venture:

 – Technip benefits from its recent acquisition of Stone and Webster from the Shaw Group and related licenses in olefin processes

 – Odebrecht, the leading engineering company in Brazil, takes the opportunity to expand its footprint in South America

 – ICA Fluor, a joint venture between Fluor Corporation and the local ICA engineering company providing EPC services in Central America and Carabbean will contribute to enrich the local content of the project from their offices in Mexico City.

Beside the EPC package awarded to Technip – Odebrecht – ICA Fluor, the infrastructures needed for the project include:

 – 3.7 kilometer water supply pipeline

 – 1.6 kilometers natural gas pipeline

 – 5 kilometers overhead lines for the power supply

Among the long lead items:

 – Mitsubishi Heavy Industry (MHI) has been awarded the compressors and steam turbines

 – GE booked the hyper compressor and booster compressor for the LDPE unit.

Braskem Idesa expects from the joint venture Technip – Odebrecht – ICA Fluor the Ethylene XXI project to be completed and run into commercial operations in 2015.

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