Tecnimont S.p.A. and Tecnimont Private Ltd, subsidiaries of Italian downstream engineering firm Maire Tecnimont S.p.A., have been jointly awarded an Engineering, Procurement, Construction and Commissioning (EPCC) lump sum contract by Indian Oil Corporation Ltd for the implementation of a new polypropylene plant at its Barauni refining complex in Bihar.
The overall value of the contract is about $170 million, Maire Tecnimont said in a statement on Monday. The plant will have a capacity of 200,000 tonnes per year and the time schedule is 30 months from the award date up to mechanical completion.
“This is our sixth strategic EPC contract with a market leader such as Indian Oil, along with our recent joint initiatives in the green energy arena,” Maire Tecnimont CEO Pierroberto Folgiero said in the statement.
The scope of work entails engineering, procurement, construction and commissioning activities up to the performance guarantees test run. The plant is part of Indian Oil’s Barauni Refinery capacity expansion project, which entails the installation of large grassroots units as well as revamps and upgrades to increase the capacity of current units.
The Barauni Refinery Expansion project is part of IOCL’s plan to meet the growing domestic demand for added-value products needed to boost the country’s manufacturing industry, the statement said.
In April, French firm Technip Energies announced that Indian Oil has awarded it the EPCC contract for the installation of a Once-through Hydrocracker Unit (OHCU) of 1 million tonnes per annum capacity and a Fuel Gas Treatment Unit at the Barauni refinery.