Contract for Louisiana Methanol Plant Goes to KBR
Methanex Corp. has awarded KBR, Inc. a reimbursable engineering, procurement and construction management (EPCM) contract to provide front end engineering design (FEED) services for a world-scale methanol plant at its Geismar, La., complex, KBR reported Tuesday.
“The award of this project demonstrates KBR’s strength and capabilities in gas monetization projects,” said Farhan Mujib, president of KBR’s Hydrocarbons Services Americas unit, in a written statement. “I am delighted for this opportunity to further KBR’s partnership with Methanex and look forward to supporting Methanex on this major potential project.”
KBR stated that it will work with Methanex to provide FEED services for a third, 5,000-metric ton per day (MTPD) methanol operating plant at the Geismar site, which is located near the Mississippi River between Baton Rouge and New Orleans. Also, it stated the FEED work – based out of KBR’s Houston Operations Center – should be completed over the next 12 months.
According to the Methanol Institute, total global methanol demand amounts to 75 million tons per year. In addition, the trade association reports that industrial chemical is used in wastewater treatment and to manufacture resins, glues, plastics, automotive and marine fuels and various other products.
Currently, Methanex operates two methanol plants at Geismar – called “Geismar 1” and “Geismar 2” – that the company relocated from its production site in Punta Areneas, Chile. Each plant boasts 1 million tonnes of production capacity.
In its Second Quarter 2018 earnings report, released on July 25, Methanex stated that it plans to spend $50 to $60 million on the potential “Geismar 3” project before making a final investment decision in mid-2019.
“We believe that the potential Geismar 3 project would be advantaged relative to other projects being contemplated or under construction in the US Gulf,” Methanex stated last week.
Should Methanex go ahead with Geismar 3, KBR noted that it will have the opportunity to provided detailed EPCM services for the new facility.
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