LONDON--(BUSINESS WIRE)--Amec Foster Wheeler announces today the award of a contract by Yuhuang Chemical Inc. (YCI), a US-based subsidiary of Shandong Yuhuang Chemical Company Co. Ltd (SYCC), for its first major project in the US, a 1.7 million tons per year world-scale methanol facility on the Mississippi River in St. James Parish, Louisiana.
Under the contract, the value of which has not been disclosed, Amec Foster Wheeler will be providing engineering, project management, procurement and early construction services. The intention is to extend this into a full scope EPC contract during 2016 on mutually agreed terms.
This contract is for the first phase of YCI’s planned investment in US chemical facilities, which will be executed in a multi-phase strategy over the next decade. Construction is expected to begin in 2015, with the first phase of the methanol project beginning operations by 2018. The new methanol facility will use natural gas as its primary feedstock and utilise the Lurgi MegaMethanol® technology developed by Air Liquide Global E&C Solutions, a subsidiary of Air Liquide Group.
Simon Naylor, Amec Foster Wheeler’s Group President for the Americas commented: “We are delighted to have been selected by Yuhuang Chemical Inc. to help deliver this milestone project safely and sustainably, and look forward to expanding our relationship and building a strong partnership that will stimulate Yuhuang Chemical Inc.’s future growth.”
Charlie Yao, President & CEO of Yuhuang Chemical Inc. stated: “Amec Foster Wheeler has provided a team with solid project delivery experience and a strong working relationship with Air Liquide, and we look forward to meeting the project’s challenges with them as our partner.”
YCI is leading a growing trend of Chinese investment in US production facilities and helping develop a growing level of beneficial trade between China and the US.
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
With pro-forma 2014 scope revenues of £5.5 billion and over 40,000 people in more than 55 countries, the company operates across the whole of the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.
Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.
Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.
Shandong Yuhuang Chemical (Group) Co. Ltd. (SYCC) is a China-based petrochemical group of companies with total fixed assets of $5 billion, 2014 sales over $4.5 billion and more than 5,600 employees. The company ranks No. 432 among the leading 500 Chinese companies and No. 24 among China’s Top 25 chemical companies. Shandong Yuhuang produces and markets a range of chemicals, including propylene, isobutene, butadiene, isoprene, styrene, toluene and others. For more information, visit yuhuanghuagong.com.
About Yuhuang Chemical Inc. (YCI) The North American subsidiary of Shandong Yuhuang Chemical Co. Ltd., Yuhuang Chemical Inc. operates a corporate office in Houston and is developing its first major U.S. project in St. James Parish in Louisiana. The first phase will be a 1.7 million ton per year methanol plant, scheduled to be online in the first quarter of 2018. After the first plant is completed, YCI plans to continue to execute its multi-phase strategy, developing the 1,300 acre St, James site into a world-class chemical manufacturing complex.
Forward-Looking Statements
This announcement contains statements which constitute “forward-looking statements.” Forward-looking statements include any statements related to the timing and success of contracts, and are generally identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “may,” “continue,” “should” and other similar expressions. Forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Amec Foster Wheeler, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Amec Foster Wheeler does not undertake to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise.