Petrochemical complex to be built in Tuban
Petrochemical complex to be built in Tuban
BOSTON (Reuter): Stone & Webster Inc said Monday it signed a
lump sum, turnkey contract to build a large grassroots
petrochemical complex at Tuban, East Java.
Stone & Webster said the contract, valued in excess of $1.7
billion, is with PT Trans-Pacific Petrochemical Indotama, an
Indonesia petrochemical venture owned by PT Tirtamas Majutama, an
Indonesian industrial conglomerate; Trans-Pacific Petrochemical
Ltd, an affiliate of Siam Cement Co Plc; and Nissho Iwai Corp.
Stone & Webster is managing contractor and leader of a
consortium that is unchanged from when the project was announced
in January, spokesman Jeremiah P. Cronin said.
The other members of the group are AEC International Projects
Inc and Process Engineers Inc of the United States, and Japan's
JGC Corp, an engineering contractor.
Work has been initiated on the project with site clearing
underway.
The BankAmerica Corp has announced the overall complex cost
will exceed $2.3 billion and that $1.75 billion of project debt
will be raised from various export agencies.
These include the U.S. Exim Bank, international commercial
banks, Indonesian banks, and Japanese trading companies, Stone &
Webster said.
The plant will begin commercial operations in mid-1999 with
capacity to produce three million tons of olefins and aromatics
and other petrochemical products per year, including 700,000 tons
of ethylene, 380,000 tons of propylene and 500,000 tons of
paraxylene.
Stone & Webster said it will provide full engineering and
design; procurement and supply of all process equipment and
materials; and construction, commissioning, start-up and training
for the ethylene plant, offsites, utilities and infrastructure
facilities.
In addition to these engineering services, Stone & Webster
said, it is providing its proprietary olefins technology which
includes the Ultra-Selective Cracking pyrolysis system and the
Advanced Recovery System.
With the award of this contract, part of which was recorded in
1996, Stone & Webster's total company backlog now stands at $2.8
billion, it said.