McDermott has been allocated a new PMC and EPCM contract aiming to expand Naphtha cracking unit by 20 percent

Indian Oil Corporation Limited (IOCL) has awarded McDermott, an engineering and construction firm headquartered in the U.S., an expansion contract for the Panipat refinery and petrochemical complex, which is located in Haryana, India.

The contract involves project management consultancy as well as engineering, construction, and procurement management for the expansion of the naphtha cracker unit of IOCL, along with the addition of a new ethylene derivative unit at the Panipat facility.

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McDermott will play a vital role under this contract in providing management consultancy for the project and managing the engineering, construction, and procurement services for the entire duration of the project. The company's center of Excellence in Gurgaon, India, will execute the project and manage the work.

The expansion of the naphtha cracking unit is expected to increase the company's production capacity of ethylene by around 20 percent. This expansion will prove beneficial for downstream polymer units as it will provide additional ethylene and propylene.

According to Vaseem Khan, Senior Vice President of Global Operations at McDermott, the company is currently managing four other projects of IOCL, including the production unit on the same site of maleic anhydride (MAH). McDermott focuses on realizing the synergies by using local resources and expertise. The expansion project will help meet the growing demand for ethylene and propylene, thereby reducing imports and accelerating economic development in the area.

This contract covers the supervision of engineering activities, front-end engineering design, and construction supervision services. This contract also covers support in start-up, commissioning, and performance guarantee testing. In the end, the contract will be finished with project closure activities.

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According to Procurement Resource, McDermott, a leading engineering and construction service provider, is all set for the expansion project of IOCL's petrochemical complex located in Panipat, Haryana. The contract has been extended by the IOCL and covers the expansion of IOCL's naphtha cracking unit and the addition of a new ethylene derivative unit.