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Largest Global Integrated Polyethylene Project in Russia Adds Another EPC Firm
January 06, 2022

The world's largest Polyethylene (PE) integration project being planned in Russia has added another Engineering, Procurement, Construction (EPC) company with Korea-based DL E&C. The company said this week it won a contract to participate in the Russian Baltic Complex project, a mega-scale gas chemical project located onshore Russia in the Gulf of Finland, owned by RusGazDobycha subsidiary Baltic Chemical Complex LLC (BCC).

As part of the EPC contract, valued at about EUR 1.17 billion (USD 1.33 Billion), DL E&C will take charge of design and equipment procurement.

The core of the project involves plans to construct the world's largest polymer plant on a single-line basis in the region of Ust-Luga 110 kilometers southwest of St. Petersburg. The plant will be capable of producing 3 million mt/yr of Polyethylene, 120,000 mt/yr of butane and 50,000 mt/yr of hexane. This is part of a larger overall project investment combining LNG and Ethane production within one industrial site that will produce 45 billion m3/yr of gas, 13 million mt/yr of LNG, up to 3.8 million mt/yr of Ethane fraction, up to 2.4 million mt/yr of LPG, and 0.2 million mt/yr of Pentane-Hexane fraction.

DL E&C has been involved in the basic project design of the Russian Baltic Complex Project since December 2019.

"This project is meaningful in that we won a big order in Russia, a market regarded as a high barrier to entry for Korean construction companies," said Yoo Jae-ho, head of DL E&C's plant business division. "We would strengthen our digital innovation and BIM-based design ability to solidify our position in the expanding Russian market."

The Korean EPC company joins other engineering firms on the project such as McDermott International, Linde and Renaissance Heavy Industries, which were awarded EPC contracts in 2021.

Construction on the project began in May, with the first stage of the complex expected to be complete in Q4 2023, and the second stage to be phased in the following year.

By Brian Balboa for The Plastics Exchange.

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