Contractors in ethylene alliance
15 Jan 2000
Two of the world's largest petrochemical contractors, Fluor Daniel and Stone & Webster, are joining forces to exploit the huge market for ethylene and its derivatives. The two US firms say they will be able to cut the cost and the time of building cracker complexes.
Capital expenditures on ethylene plants are expected to reach $25 billion worldwide by 2005, with investments for the derivatives chain reaching $18 billion over the same period, say the companies. The venture will draw on Fluor's global reach, and its reputation and expertise in construction, process facility design and programme management; while S&W brings its ethylene technology and project execution strengths. A Stone & Webster spokesman told PE that, with the size of new ethylene complexes increasing steadily, the company had found it increasingly difficult to bid for world-scale complexes.
The venture has offices in Houston, although it hasn't yet been named. New invitations to bid will be referred to the venture, which will deliver some of the promised cost-savings, according to Stone & Webster. However, there are no plans to transfer existing projects; there are also no plans to cut jobs.
