China: Ethylene Expansion Wood Wins 120 Million Dollar EPC Contract in China

Sinopec has awarded Wood with an EPC contract for expanding its refinery in the Hainan Free Trade Zone in South China. On completion, the project is expected to produce up to one million tons of ethylene derivatives and refined oil annually.

UK – Wood has secured a contract valued at over 120 million dollars with Sinopec Hainan Refining and Chemical Ltd Company (Sinopec) to provide engineering, procurement and construction (EPC) services to expand its refinery development in the Hainan Free Trade Zone (FTZ) in South China.

Once completed, the ethylene renovation and expansion project will produce up to one million tons of ethylene derivatives and refined oil on an annual basis and is expected to boost economic growth in China’s downstream sector by more than 14.1 billion dollars. Output from the Hainan FTZ will serve ethylene demand across China and globally.

Under the new contract, EPC services for the sitewide pipe rack and associated pipework, cables for power, telecommunications and lighting will be delivered by Wood’s engineering and project management teams based in Shanghai and on site.

PROCESS Insights 2020-05
Challenges for EPC Contractors

With an influx of largescale petrochemical construction projects, EPC Contractors will have to be confronted with challenges such as finding enough capacity and quality of construction manpower, delayed permits etc. which require an EPC strategy to stay competitive in this ever-growing market.

This 12-page Process Insight will discuss the current changes in the EPC business and the impact of these changes on EPC projects. Besides the effect of the Coronavirus as well as the current oil price crash on the contracting industry will also be analyzed and an outlook for the industry will be given.

Mike Collins, Wood’s Executive President of Projects comments: “We are delighted to win this new contract with Sinopec which demonstrates the strength of our long-standing relationship with the client and their confidence in our extensive EPC expertise in the petrochemical sector.

We look forward to continuing our partnership to deliver this project safely, sustainably and on-time, making a positive contribution to this significant development. Wood is uniquely placed to leverage our engineering design expertise and global petrochemical track record to play a significant role in the growth of Sinopec’s business and the economic development of Hainan, boosting the local supply chain.”

(ID:47073231)