AMEC Appointed PMC of Coal-to-chemicals Development in China

AMEC has been appointed by the Ningxia Coal Industry Group (NCG) as the project management contractor for the development of a new US$1.5 billion coal-to-chemical production complex in the Ningxia Hui Autonomous Region in northwest China. The value of the multi-million dollar contract has not been announced.

AMEC's role, which it will carry out as part of an integrated project team with NCG, will involve setting up project management procedures and taking responsibility for the contracting strategy, construction management advice and support, safety, health and environmental issues, quality assurance, commissioning and start-up management support and several other operational and commercial functions. The project will use AMEC's proprietary project management system, CONVERO.

Work on the new facility, which is designed to produce 540,000 tonnes of polypropylene per year, will begin in February this year and will be completed in early 2009. Polypropylene is a chemical product usually derived from oil refining and ethylene processing but the project will use coal as the feedstock, which will come from large reserves in the Ningxia area.

The complex will include a coal gasifier plant, a methanol and methanol-to-propylene unit, and a polypropylene unit.

"China is making major investments in plants to convert coal into oil, gas and chemicals to reduce its reliance on foreign imports, and the Ningxia contract marks our entry in to this new and fast-growing sectorp", said Neil Bruce, managing Director of AMEC's Oil and Gas business. "It also reinforces our position as a leading project management contractor in China, building on our success on the multi-billion dollar SECCO Ethylene plant and the recent award of a technical services contract for Petrochina's Dushanzi project."

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Posted 30/01/06

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