Yuhuang Chemical (YCI), a US-based subsidiary of China's Shandong Yuhuang Chemical Co., has awarded an engineering contract to Amec Foster Wheeler for its first major project in the US, a 1.7 million tpy world-scale methanol facility in St. James Parish, Louisiana.

 

Under the contract, the value of which has not been disclosed, Amec Foster Wheeler will be providing engineering, project management, procurement and early construction services. The intention is to extend this into a full scope EPC contract during 2016 on mutually agreed terms. 

 

This contract is for the first phase of YCI’s planned investment in US chemical facilities, which will be executed in a multi-phase strategy over the next decade. Construction is expected to begin in 2015, with the first phase of the methanol project beginning operations by 2018. 

The new methanol facility will use natural gas as its primary feedstock and utilize the Lurgi MegaMethanoltechnology developed by Air Liquide Global E&C Solutions, a subsidiary of Air Liquide Group.

 

“We are delighted to have been selected by YCI to help deliver this milestone project safely and sustainably, and look forward to expanding our relationship and building a strong partnership that will stimulate YCI’s future growth," said Simon Naylor, Amec Foster Wheeler’s group president for the Americas.

YCI is leading a growing trend of Chinese investment in US production facilities and helping develop a growing level of beneficial trade between China and the US, according to company officials.

 

“Amec Foster Wheeler has provided a team with solid project delivery experience and a strong working relationship with Air Liquide, and we look forward to meeting the project’s challenges with them as our partner," said Charlie Yao, president and CEO of YCI.