McDermott International has received a front-end engineering design (FEED) contract
from PetroLogistics ll LLC for a propane dehydrogenation plant (PDH plant) in the US Gulf Coast.

The contract, valued between $1 million and $50 million, will include the development of a propane dehydrogenation plant.

The plant with a design basis of 500,000-tonne per year is expected to support the future growth of propylene in the US.

Commenting on the propane dehydrogenation plant contract, Mark Coscio – McDermott senior vice president for North, Central and South America, said: “McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the US.

“We will pull from our vast expertise in engineering to complete the FEED.”

McDermott said it was awarded the contract due to its expertise in carrying out fluid catalytic cracking projects.

Nathan Ticatch – PetroLogistics II president, commenting on the propane dehydrogenation plant contract, said: “The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers.

“As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation.

“We are excited to work with McDermott to develop a facility that can supply a solution to this need.”

The contract was reflected in McDermott’s second quarter 2019 backlog.

David Lumpkins – PetroLogistics chairman said: “We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project.”

Operating in over 54 countries, McDermott provides technology, engineering and construction solutions to the energy industry.

PetroLogistics II acquires, develops and operates petrochemical manufacturing, processing and logistics assets in North America. The Houston-based company is owned by affiliates of Quantum Energy Partners and certain members of the company’s management.

For more updates on the PetroLogistics propane dehydrogenation plant and other oil and gas industry news, keep following Business News Today.

  David Lumpkins, Mark Coscio, McDermott International, Nathan Ticatch, Oil and gas industry news, PetroLogistics ll, Propane, propane dehydrogenation, USA