Amec Foster Wheeler has been awarded the engineering and project management contract for Yuhuang Chemical Inc.’s $800 million methanol plant in St. James Parish.
The value of the contract was not disclosed. Amec Foster Wheeler is a global company that services a number of industries, including oil and gas, mining and power generation. Under the agreement, Amec Foster Wheeler will provide engineering, project management, procurement and early construction services. The companies plan to extend the agreement into a “full-scope” engineering, procurement and construction contract during 2016.
Yuhuang expects construction on the methanol plant to begin in 2015, and operations by 2018. The plant will use natural gas as its primary feedstock. Methanol is a key ingredient in making plastics.
The methanol plant is the first phase of a planned $1.85 billion manufacturing complex. Yuhuang also plans a second $500 million methanol plant. The third phase includes a methanol derivatives plant that will produce intermediate chemicals.