MHIENG wins contract to build polyethylene plant in Texas, US
June 22, 2019 – Mitsubishi Heavy Industries Engineering (MHIENG) and Mitsubishi Heavy Industries America, (MHIA), group companies of Mitsubishi Heavy Industries (MHI) have been awarded a construction contract for large-scale polyethylene plant in Texas, US.
The contract, which derives from a joint project with US construction firm Zachry Group, was awarded by Gulf Coast Growth Ventures (GCGV), a 50/50 joint venture of ExxonMobil and Saudi Basic Industries Corporation (SABIC).
Under the contract, the MHIENG will build the polyethylene plant with annual production capacity of 1.3 million tonnes.
MHIENG will be responsible for the design details, supply and procurement of equipment, and building of the modules for the polyethylene plant, which is a part of $9bn (£7bn) petrochemical plant which is planned to be build by GCGV near Corpus Christi, Texas.
The polyethylene plant will produce polymers which are used in a number of applications such as food packaging, agriculture films, and construction materials.
The proposed petrochemical plant will comprise a 1.8 million metric ton ethane steam cracker, two polyethylene units and a monoethylene glycol unit.
Scheduled to be commissioned by 2022, the project is expected to create 6,000 jobs during construction phase and 600 permanent jobs once operational.
For the project delivery, MHIENG plans to use modular construction strategy to improve capital efficiency while optimizing the client’s schedule.
ExxonMobil and MHIENG have built similar polyethylene plants in Texas in 2017 and are currently constructing additional large-scale polyethylene plant in Beaumont, Texas.
The GCGV’s new petrochemical plant will be equipped to produce materials, which will be used in the manufacturing of various consumer products including automotive coolants, packaging, agricultural film and building, construction materials and clothing.
According to a preliminary independent study, conducted by Impact DataSource, the project is estimated to generate more than $22bn (£17.3bn) in economic output during construction and $50bn (£39.4bn) in economic benefits during the first six years of operation.
The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group are the four engineering, procurement and construction companies that will responsible for the project construction.