Contract let for proposed Louisiana methanol complex

Yuhuang Chemical Inc. (YCI), a subsidiary of China’s Shandong Yuhuang Chemical Co. Ltd., has let a contract to Amec Foster Wheeler (AFW) for preliminary work related to construction of YCI’s proposed $1.85-billion methanol manufacturing complex to be built along the Mississippi River in St. James Parish, La. (OGJ Online, July 18, 2014).

AFW will deliver engineering, procurement, early construction services (EPC), and project management for Phase 1 of the grassroots complex, which includes a 1.7 million-tonne/year methanol plant, the company said.

The parties intend to extend the early works agreement into a full-scope EPC contract sometime during 2016 following the start of Phase 1 construction, which will begin later this year, AFW said.

The first-phase methanol plant is due for start-up during first-quarter 2018, AFW said.

Upon announcing the project in 2014, YCI said construction of the entire complex would take about 10 years to complete.

Once fully commissioned, the complex will include two methanol plants with a combined capacity of 3 million tpy, as well as a methanol derivatives plant for production of intermediate chemicals.

Most recently, YCI let a long-term contract to Air Liquide SA, Paris, to supply the proposed methanol plants with 2,400 tonnes/day of oxygen that will be produced from a new air separation unit that Air Liquide will invest about $170 million to build nearby the manufacturing complex (OGJ Online, Feb. 11, 2015).

YCI previously awarded contracts to China Huanqiu Contracting & Engineering Corp. for delivery of engineering work on the project, and to Air Liquide Global E&C Solutions for its proprietary MegaMethanol process technology, which the complex will use to convert natural gas to methanol.

Contact Robert Brelsford at [email protected].