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Saudi-listed chemicals giant Chemanol has awarded the Engineering, Procurement and Construction (EPC) services contract for the expansion of its methanol plant in Jubail Industrial City to US-based energy engineering and construction company McDermott.
Chemanol said in a statement that the project “represents a major step forward in increasing the energy efficiency of the asset while expanding its capacity and ultimately bringing value to the company's shareholders.”
The EPC tender was issued in November 2023, according to a Zawya Projects report.
Ali Abdulaziz Alturki, Chairman of the Board of Chemanol, said: "We are thrilled to work on this important project with McDermott which not only contributes to Chemanol’s sustainability and growth plans but also paves the way for more long-term strategic collaborations with McDermott."
“Through early engagement with Chemanol, we drew on our deep-rooted expertise in petrochemicals to deliver early engineering, procurement and cost estimation services to minimize risks and position the project for future success,” added Rob Shaul, Senior Vice President, Low Carbon Solutions for McDermott.
The statement didn’t reveal the contract value but said the project is expected to be completed in the fourth quarter of 2027.
Chemanol is an integrated producer of methanol and chemical derivatives and is also one of the world’s largest formaldehyde and derivatives producers situated in a single location, with a total annual production capacity of one million metric tonnes.
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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