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McDermott tapped for work on propane dehydrogenation project on US Gulf Coast

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McDermott tapped for work on propane dehydrogenation project on US Gulf Coast

McDermott International Inc. was granted a sizable contract by PetroLogistics II LLC to provide front-end engineering design for a planned propane dehydrogenation facility in the U.S. Gulf Coast, according to an Aug. 12 release.

McDermott will assist in developing the facility, which has a design basis of 500 kilotons per annum.

"The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of U.S. propylene: petroleum refineries and heavy feed ethylene crackers," PetroLogistics II President Nathan Ticatch said. "As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation."

While no exact contract value was disclosed, McDermott defines a sizeable contract as between $1 million and $50 million. The award was reflected in the company's second-quarter backlog.