McDermott has been awarded a large contract by PetroLogistics ll for the front-end engineering design (FEED) services for a propane dehydrogenation (PDH) facility for the U.S. Gulf Coast.
The plant has a planned 500 KTA (kilo tonnes per annum) capacity.
"McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the U.S.," said Mark Coscio, McDermott's senior vice president for North, Central and South America.
"We will pull from our vast expertise in engineering to complete the FEED.”
McDermott was selected due to its strength in engineering and extensive knowledge in executing fluid catalytic cracking (FCC) projects.
Nathan Ticatch, PetroLogistics II president said: "The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of U.S. propylene: petroleum refineries and heavy feed ethylene crackers.
"As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation. We are excited to work with McDermott to develop a facility that can supply a solution to this need."
David Lumpkins, PetroLogistics chairman, added:"We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project.”