HOUSTON, May 21, 2020 /PRNewswire/ -- McDermott International, Inc. today announced that it has been awarded a sizeable* technology contract by Advanced Global Investment Company, a wholly owned subsidiary of Advanced Petrochermical Co. (APC). McDermott's Lummus Technology will provide the license and basic engineering package of a C3 CATOFIN unit at its new grassroots petrochemical complex in Jubail, Kingdom of Saudi Arabia. The unit will have a propylene production capacity of 843,000 metric tons per annum.
"The CATOFIN technology that Lummus licenses worldwide, alongside our partner Clariant, provides a highly reliable, lower-cost route to propylene, with a lower carbon footprint. APC's decision to proceed with CATOFIN technology for their second unit is a testament to the successful operation of their PDH unit and consistent performance as a top quartile PDH complex," said Leon de Bruyn, Senior Vice President, Lummus Technology.
This is APC's second CATOFIN unit in their portfolio, having previously licensed the technology for their first unit in 2003—also in Jubail, KSA.
The CATOFIN process operates at optimized reactor pressure and temperature to maximize propylene yield. This plant will utilize Clariant's latest generation CATOFIN catalyst system, including the company's patented metal-oxide Heat Generating Material (HGM) to deliver maximized selectivity at high conversion rates and long run lengths.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award was reflected in McDermott's first quarter 2020 backlog.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and value of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2019 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
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SOURCE McDermott International, Inc.