Technip awarded contracts for Westlake Chemical's ethylene plant expansion in Kentucky
Tuesday, January 29, 2013
- The expansion and feedstock conversion of the ethylene plant will enhance Westlake's vinyl chain* integration and leverage low-cost ethane being developed in regional shale gas areas.
Technip (Paris:TEC) (ISIN:FR0000131708) was awarded engineering and procurement contracts by Westlake Chemical Corporation (NYSE: WLK) for the expansion and modernization of the ethylene cracking furnaces and the recovery section of Westlake's ethylene plant in Calvert City, Kentucky. The ethylene production capacity will be increased by 40 percent - from 450 million pounds per year to 630 million pounds per year - and will use ethane feedstock instead of propane as per the original design.
The expansion and feedstock conversion of the ethylene plant will enhance Westlake's vinyl chain* integration and leverage low-cost ethane being developed in regional shale gas areas. Westlake is one of the major ethylene producers in the U.S. and its Calvert City operation is a large integrated PVC site.
Technip's operating center in Claremont, California, will execute the work.
Nello Uccelletti, Technip's Senior Vice President Onshore, commented: 'Technip is pleased to have the opportunity to support Westlake with this important and strategic project. As the largest ethylene licensor and contractor, Technip looks forward to bringing its experience and capabilities in the revamp of cracking furnaces and modernization of ethylene plants to this project. We will utilize our state-of-the-art proprietary technology from our portfolio, recently expanded by the acquisition of Stone & Webster process technologies and associated oil and gas engineering capabilities.'
* Vinyl chain: production of PVC using ethylene and chlorine.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More