News

INEOS awards Doosan Babcock contract

INEOS awards Mechanical Engineering Firm substantial piping contract

  • INEOS awards multi-million pound mechanical piping contract to UK-based Doosan Babcock as part of its £300m Ethane Supply Project at Grangemouth
  • The contract will provide employment for between 100 and 150 local people
  • Doosan Babcock will fabricate and install pipework linking the new ethane storage tank to the import jetty and to the KG ethylene cracker plant
  • Scope includes the installation of over 4.5 km of 24” stainless steel pipework

UK engineering firm, Doosan Babcock, has been awarded a multi-million pound contract by INEOS at Grangemouth to deliver the mechanical piping works associated with their £300m Ethane Supply Project. Working from its manufacturing facility in Renfrew, Scotland, Doosan Babcock will fabricate and install all the new pipework that will connect the ethane offloading booms at the Grangemouth Jetty to the new ethane storage tank and the pipework systems from the ethane storage tank to the KG ethylene cracker plant.

The Ethane Supply Project, due for completion in 2016, will allow INEOS to import, store and utilise competitive US shale gas ethane.

Robert Hamilton, O&P UK Procurement Manager, INEOS said, “Following a competitive tender process we are delighted to announce that the mechanical piping contract for the main pipeline associated with the ethane supply project will be fulfilled by Doosan Babcock from their Scottish manufacturing base in Renfrew. We anticipate that the contract will provide employment for between 100 and 150 local people over the course of the contract.”

Alan MacMillan, O&P UK Ethane Supply Project Manager, INEOS said “We were very impressed with the bid from Doosan Babcock, particularly their offer of an experienced team with extensive knowledge of the Grangemouth site to deliver this project. Doosan Babcock has a good track record of delivering successful projects at the Grangemouth site with an excellent safety record. We look forward to working with Doosan Babcock in delivering this vital project for INEOS and the UK petrochemical industry.”

David Cornforth, Director UK MRO, Doosan Babcock said, “We are delighted to have been given this opportunity to further build on our longstanding relationship with INEOS.  Grangemouth is an important strategic site to Doosan Babcock and a major place of employment of our people, and we look forward to contributing to this landmark project.  Through our Process Engineering Centre in Renfrew, established last summer, Doosan Babcock is continually investing in the specialist skills and knowledge to support the UK petrochemical sector, while at the same time creating more new roles for British engineers.”

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Notes to editors:

The INEOS Grangemouth site is undergoing a radical transformation with significant investment that will herald a new era in petrochemical manufacture in Scotland.
This investment is in the order of c £450m and represents the most significant investment in to UK and Scottish petrochemical manufacture of recent times and demonstrates INEOS’ commitment to the Grangemouth site.
The site is embarking on a number of synchronised projects and activities and there are many facets to this transformation, which when completed, will position the Grangemouth site amongst the ‘premier league’ of its peers.

One of these projects is the Ethane Supply Project which will allow INEOS O&P UK to import, store and utilise US sourced shale gas ethane. Currently under construction at the Grangemouth site is Europe’s largest ethane storage tank which will have the capacity to store 60,000 cubic metres of liquefied ethane gas.
With the steady decline in feedstocks from the North Sea, the introduction of US shale gas ethane will provide the site with a long-term source of feedstock for the Grangemouth site’s petrochemical plants.

Doosan Babcock: 
Doosan Babcock is a specialist in the delivery of engineering, aftermarket and upgrade services to the thermal power, nuclear, oil and gas, petrochemical and process sectors. Using best-in-class technical expertise and an industry-leading project management capability, the company builds, maintains and extends the life of customer assets worldwide.
Doosan Babcock is part of a powerful combination of companies united under the Doosan Group to deliver complementary technologies, skills and value to customers the world over.

The value of the contract is not disclosed.

For more information: 

David East, Communications Manager, INEOS Grangemouth david.east@ineos.com
01324 476948

Nick Johnson, Corporate Communications Director, Doosan Power Systems SA,nick.johnson@doosan.com w +44(0)1293 584773, m +44(0)7852 871220