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US-based engineering and construction company McDermott has secured a contract from Indian Oil Corporation Limited (IOCL) for the expansion of the Panipat refinery and petrochemical complex in Haryana, India.

The value of the contract has not been released.

The contract has been awarded for project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) for phase two of IOCL’s existing naphtha cracker unit (NCU) expansion project as well as adding a new ethylene derivative unit (EDU) at the Panipat facility.

Under the contract, McDermott will be responsible for providing comprehensive EPCM services and overall project management for the project duration.

McDermott will execute the work under the contract from its Center of Excellence in Gurugram, India.

The company expects the phase-two NCU expansion project to increase the ethylene production capacity of the NCU by around 20%.

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By GlobalData

The additional ethylene and propylene production will serve as feed for downstream polymer units.

McDermott global operations senior vice-president Vaseem Khan said: “McDermott is currently executing four other projects for IOCL, including the maleic anhydride (MAH) unit at the same site, allowing us to leverage our local resources and expertise while realising synergies.

“Furthermore, the project supports the growing demand for ethylene and propylene, which will reduce imports and accelerate economic development in the area.”

Earlier this year, McDermott was selected by IOCL to undertake PMC work for the MAH unit at the Panipat refinery and petrochemical complex.

The scope of the contract included front-end engineering design, review of engineering activities, construction supervision services, assistance in start-up, pre-commissioning, commissioning, performance guarantee test run and project closure.

Commissioned in 1998, the Panipat complex is located around 100km from New Delhi in Panipat, Haryana.