The Shaw Group Inc. announced it has been selected to license its proprietary Refinery Offgas (ROG) purification and recovery technology and supply process design services for a 1,500 kilo tonnes per annum (kTA) deep catalytic cracking (DCC) unit in Shaanxi province, China. The unit, which produces ethylene and propylene from heavy oil feedstock, is owned by Yulin Energy and Chemical Co. Ltd., a subsidiary of Yanchang Petroleum Group Co. (SYP).
Shaw’s ROG technology will enable SYP’s unit to produce an incremental 270 kTA of ethylene and 320 kTA propylene. Under the agreement, Shaw also will provide the technology for two Ultra Selective Conversion (USC®) furnaces and other proprietary equipment, as well as technical support during basic and detailed design, commissioning and startup of the DCC unit.
The undisclosed value of the contract will be included in the Energy & Chemicals segment’s backlog of unfilled orders in the first quarter of fiscal year 2010.
“SYP is a new client for Shaw, and we look forward to contributing our advanced technology and engineering capabilities, not only in traditional ethylene plants, but in broader olefins fields,” said Lou Pucher, president of Shaw’s Energy & Chemicals Group.
Sinopec’s Research Institute of Petroleum Processing (RIPP) and Sinopec Engineering Inc. (SEI) will provide technology and engineering for the reactor/regenerator and primary fractionation sections of the DCC unit.
The award follows the successful startup of the first olefins unit to include commercial installation of RIPP’s technology to convert heavy crude feedstock to ethylene and propylene. Shaw also provided its proprietary USC® furnaces and basic engineering for this project.
SYP is a state-owned enterprise affiliated with Shanxi provincial government and one of four oil and gas exploration companies in China.