KBR (NYSE: KBR) announced today that it has been awarded a front-end engineering and design (FEED) contract by INEOS Olefins & Polymers USA (INEOS) for one of the largest grassroots high-density polyethylene (HDPE) plants to be built in the Americas. The facility would produce 470 kilotons per annum of bimodal HDPE using Innovene™ S process technology.
KBR’s work on this facility will support efforts that take advantage of the projected resurgence of U.S. ethylene production capacity resulting from abundant shale energy resources in North America.
The facility is expected to be located in the U.S. Gulf coast area.
KBR’s scope of work includes the FEED for the inside and outside battery limit facilities, development of an appropriation grade cost estimate, and order of long lead equipment for the project. Services will be provided out of KBR’s Houston world headquarters and Monterrey, Mexico High Value Engineering Center. Full sanction for the project is anticipated in the first half of 2014. Steady state of operation for this facility is targeted for the fourth quarter of 2015.
“This is an important and strategic win for KBR and will allow us the opportunity to demonstrate our unparalleled expertise in the downstream market,” said David Zelinski, President, KBR Downstream. “KBR is pleased to continue our successful partnership with INEOS and support their commitment to the HDPE market.”
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