US contractor wins Saudi storage tank deal

24 July 2018
McDermott will supply storage tanks for JUPC’s Ethylene Glycol Plant III

US-based energy contractor McDermott International has won a contract from South Korea’s Samsung Engineering for engineering, procurement and construction (EPC) of CB&I storage tanks at the Jubail United Petrochemical Company’s (JUPC) Ethylene Glycol Plant III.

Samsung Engineering is the main EPC contractor of Saudi Basic Industries Corporation (Sabic) subsidiary JUPC’s Ethylene Glycol Plant III, also called the Ethylene Oxide/Ethylene Glycol (EOEG plant), being built in Saudi Arabia’s Jubail.

McDermott will install 23 CB&I-branded storage tanks and work on modifying two existing tanks at the site.

McDermott described the fixed lump sum contract as ‘sizeable’, by which it denotes jobs having a value between $1m and $50m. MEED is awaiting a response from McDermott to a request revealing the precise value of the contract.

Work on the contract begins immediately and will be reflected in McDermott's second quarter 2018 backlog, the firm said in a statement.

Offshore-focused McDermott completed the acquisition of US onshore engineering contractor Chicago Bridge & Iron (CB&I) in May, transforming itself into a diversified contractor ready to cater for the full energy spectrum.

The EOEG plant’s production capacity is estimated to be 700,000 metric tonnes of ethylene glycol per year.

Samsung Engineering says the construction of the project will be completed in the fourth quarter 2020.

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