IOCL entrusts McDermott with naphtha cracker expansion at Panipat Refinery

McDermott has secured a project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) contract for the Naphtha Cracker Expansion (Phase II) polypropylene expansion and new ethylene derivative unit project from Indian Oil Corporation Limited (IOCL). The project, based at the Panipat Refinery and Petrochemical Complex located 62 miles (100 kilometers) from New Delhi, India, aims to bolster the ethylene production capacity of the naphtha cracker unit (NCU) by nearly 20%.

This expansion will enhance additional ethylene and propylene production, serving as feed for downstream polymer units. These polymer products are integral in the production of various household and industrial commodities such as containers, automobile parts, furniture, and heavy-duty films.

Vaseem Khan, Senior Vice President of Global Operations at McDermott, stated, “McDermott is currently executing four other projects for IOCL, including the maleic anhydride (MAH) unit at the same site, allowing us to leverage our local resources and expertise while realizing synergies. Furthermore, the project supports the growing demand for ethylene and propylene which will reduce imports and accelerate economic development in the area.”

The full suite of EPCM services and overarching project management will be provided by McDermott for the duration of the project, with execution stemming from its Center of Excellence in Gurugram, India. This key contract award aligns with the growing demand for ethylene and propylene in the region and symbolizes a strategic step in minimizing imports and enhancing the local economy.