INEOS, Sasol award EPC contract to KBR for new Texas polyethylene plant

KBR was awarded a contract from INEOS and Sasol to provide engineering, procurement, and construction (EPC) services for a new high-density polyethylene (HDPE) facility to be located at INEOS's Battleground complex in La Porte, Texas, officials said on Thursday.

The new facility is designed to produce 470,000 tpy of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. The new, single-train facility will include new polymerization, pelletization, and railcar load-out facilities, plus upgrades to existing utilities and infrastructure.

Engineering and procurement services will be split between KBR's Houston operating center and KBR's Monterrey engineering center. KBR will provide direct hire construction with selected subcontracts to construct the new facility. 

Upon completion, the new facility will be one of the largest in the Americas.

"This significant win is a testament of the excellent work performed with the Gemini team during the FEED portion of the project," said Stuart Bradie, KBR's chief executive. "We look forward to continuing our work with INEOS and Sasol."

The contract value was not disclosed. Expected revenue from the contract will be included in the third quarter 2014 backlog of unfilled orders for the company's hydrocarbons segment.