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McDermott to provide engineering & procurement services for Ust-Luga Gas Chemical Complex in Russia

Russia is building its largest gas chemicals facility next to the sea port of Ust-Luga (Leningrad Region). The total capacity of the facility will be up to 3 million tonnes of polyethylene per annum

McDermott to provide engineering & procurement services for Ust-Luga Gas Chemical Complex in Russia

Moscow, October 18 - Neftegaz.RU. The US company McDermott has signed a Letter of Guarantee to deliver engineering & procurement for the ethylene cracker of the Gas Chemical Complex (GCC) project - the largest polyethylene integration project in the world - with China National Chemical Engineering and Construction Corporation Seven (CC7).

This agreement follows McDermott's safe and successful delivery of the front end engineering design and early works phases of the project.
The ethane cracker project is owned by Baltic Chemical Complex, (BCC) a subsidiary of RusGazDobycha, located onshore Russia in the Gulf of Finland.

Samik Mukherjee, McDermott´s Chief Operating Officer, said:
  • Our proven experience delivering world-class ethylene cracker projects, underpinned by our collaboration with Lummus Technology and in-house project delivery capability from the FEED to the startup phase, make us the ideal partner to continue supporting CC7 and BCC on the GCC project
  • We are uniquely positioned to offer integrated, at-scale solutions for our customers - driving safety, quality and delivery certainty
McDermott will provide complete project management, engineering and procurement services, including field engineering, author supervision and the supply of equipment and materials for a 2 train ethane cracker unit with combined capacity of 2.8 million tons of ethylene per year and is licensed by Lummus Technology.

Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene and represents approximately 40 % of the world's capacity.
Tareq Kawash, McDermott´s Senior VP Europe, Middle East, Africa, noted:
  • This additional award is testament to McDermott's exemplary performance during the earlier project phases and our ability to provide integrated solutions throughout the entire lifecycle of a project,
  • The GCC project is a game changer for Russian market
  • It is the biggest single contract in the global petrochemical field and will be hugely impactful in terms of job creation
McDermott has previously collaborated with CC7 on the Afipsky Hydrocracker project and the Lukoil Delayed Coker Unit project.

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