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Essar Projects Ltd announced on Wednesday that it has secured a $320-million engineering, procurement and construction (EPC) contact from Jurong Aromatics Corporation, Singapore.
The contract is a part of the $2.4-billion grassroot aromatics complex in Jurong Island in Singapore being executed by Jurong Aromatics (JAC). The scope of Essar Projects' contract includes construction of storage tankages, jetties with loading and unloading arms, pipeline systems and utilities for the complex.
The project will be executed by a subsidiary company of Essar Projects in Singapore and will be completed within 32 months.
Commenting on the contract, Mr Alwyn Bowden, President and CEO of Essar Projects, said, “This is a prestigious project that recognises Essar Project's capability and competiveness in the SE Asian EPC market. This order is in line with the group's philosophy to actively participate in third-party projects around the globe. A third of Essar Projects Ltd's current order book of $6 billion comprises of third-party contracts and we plan to take this to 50 per cent going forward.”
Recently, Essar Projects completed the construction of a Nickel Slurry Pipeline in the challenging environment of Madagascar, and is constructing an airport in Papua New Guinea for Exxon Mobil.
In India, the company is executing large EPC contracts with IOCL (Paradip refinery), ONGC (refurbishing and construction of offshore oil platforms), GAIL and GSPL.
The Jurong project has participation from leading world petrochemical players such as Glencore, SK Engineering, Sanhai and Vinmar. The Government of Singapore has a 5 per cent stake in the project. The project has secured feedstock supply and product off-take agreements with leading global players, including from BP.
The JAC project involves the development of a condensate splitter and aromatics facility in Singapore's Jurong Island. The plant will produce 1.5 million tonnes per annum (MTPA) of aromatics – 800,000 tonnes per annum (tpa) of paraxylene, 200,000 tpa of orthoxylene, 450,000 tpa of benzene and 2.5 MTPA of transport fuels. It is scheduled to go on stream in 2014 with construction starting in June 2011.
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