CB&I (NYSE:CBI) announced Monday that it has been awarded a contract valued at about US$300 million, by Williams Olefins, LLC for a petrochemicals expansion project in Geismar, Louisiana.
The scope of the award includes the license and basic engineering for the ethylene technology, the supply of the cracking furnaces, and the detailed engineering, procurement, and construction of the expansion project. Plant capacity is expected to be increased from 1.35 to 1.95 billion pounds per year.
"We are very pleased to be selected for this important U.S. ethylene project," said Philip K. Asherman, President and CEO. "The petrochemicals market is re-emerging in the U.S. due to the abundance of lower cost ethane feedstock, directly attributable to increased shale gas production. This award reflects the industry's confidence in CB&I's ability to provide both proven technology and EPC services to the petrochemicals market."
Ethylene, mainly produced via steam cracking, is the world's largest volume hydrocarbon. As the primary building block for the chemical industry, it is used to produce a variety of products including plastics, fibers and rubbers.