Contract let for Louisiana methanol complex

YCl Methanol One LLC, a joint venture of Koch Methanol Investments LLC and Shandong Yuhuang Chemical Co. subsidiary Yuhuang Chemical Industries Inc., has let a contract to WorleyParsons Ltd. to provide commissioning and startup services for YCI Methanol’s $1.85 billion grassroots methanol plant now under construction on the Mississippi River in St. James Parish, La. (OGJ Online, July 18, 2014).

The first phase of the greenfield complex, which will produce 1.7 million tonnes/year of methanol using Air Liquide SA’s proprietary MegaMethanol technology, is scheduled to be fully operational and ready for production in late 2020, Worley said.

Alongside commissioning and startup services, the service provider said it also will deliver digital solutions for asset information consolidation, plant installation verification, and equipment testing to ensure a seamless transition to plant operation and maintenance.

While it did not disclose a value of the latest order, Worley said the contract follows its December 2014 contract award to provide integrated project management team services for the project’s first-phase development, which entailed working with YCI in project and engineering management, project controls and planning, cost estimation, quality and HSE management, procurement, and construction management, as well as accompanying YCI during front-end phases of the project, including planning, funding security, and capital diligence.

Koch Methanol acquired a majority ownership stake in the YCI Methanol One JV in August 2019, at which time it said the JV was evaluating an expansion that would more than double production of methanol at the site, according to an Aug. 23, 2019, release from Koch Methanol.

YCI previously let a series of contracts for the methanol complex, on which construction began in January 2017 (OGJ Online, Feb. 6, 2017; Sept. 16, 2015; Feb. 11, 2015).