AMEC Awarded Dushanzi Petrochemical Expansion Project

AMEC has been awarded a multi-million dollar contract by PetroChina, one of China's largest companies, for consultancy services on the US$3.5 billion Dushanzi petrochemical expansion project, western China.

The contract is the first ever awarded by PetroChina to a foreign project management firm in China where AMEC has worked for more than 70 years. China's rapid industrial growth is driving unprecedented demand for oil and gas and AMEC is developing opportunities for growth not only in project management and engineering services in the oil and gas industry but also in other sectors where there is a need for design and management of complex facilities, such as manufacturing and research and development.

Under the contract, which starts immediately and is scheduled for completion in 2008, AMEC will provide project management, process engineering, planning, cost management, safety, health and environmental, quality assurance and other related services together with its proprietary project management software, Convero, for the revamp of an existing refinery and development of a new petrochemical facility, including a 1.2m tonnes per year ethylene cracker.

"Providing key project management services to a major development in a region that will enjoy long-term growth is strategically very important to us," said Neil Bruce, managing director of AMEC's oil and gas division. "The fact that this is the first time that PetroChina has awarded work of this type to a foreign company is a testament to our project management capability and our reputation in China."

The Dushanzi contract is the latest in a long line of projects for AMEC in China. The company's recent work includes project management services for the recently completed multi-billion dollar SECCO petrochemical complex near Shanghai, and project services for a polycarbonate plant for Bayer Polymers and engineering services for a major chlorine manufacturing plant for Sichuan Shengda Chemicals.

Dushanzi, in the Xinjiang Uygur Autonomous Region, is a major processing centre for China's oil and petrochemical industries and benefits from its location 400 kilometres from the border with Kazakhstan, a major oil producer in central Asia. Most of the crude oil fed into the Dushanzi facility will be imported through a 1,200- kilometre pipeline running from Atasu in Kazakhstan. The pipeline is currently under construction and when complete later this year will transport up to 10 million tonnes of oil per year.

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Posted 10/11/05

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