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.