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L&T-Haldor Topsoe consortium to construct $150-million methanol plant in Saudi Arabia news
24 August 2006

Mumbai: Larsen & Toubro Limited (L&T) along with its consortium partner Haldor Topsoe AS of Denmark has bagged a contract to set up a methanol plant in Saudi Arabia.

The $150 million E&P (Engineering & Procurement) order from Saudi Formaldehyde Chemical Company Limited (SFCCL) involves setting up high-technology methanol and carbon monoxide plants.

India's leading engineering, technology and construction organization, SFCCL is a private sector enterprise, developed, promoted and financed by a group of leading industrialists from the Gulf Co-operation Council (GCC) countries. It is a grass-roots, second-generation petrochemical complex located in the Al Jubail Industrial City, Saudi Arabia, manufacturing formaldehyde and its derivative products.

SFCCL is undertaking backward integration by installing a 700 tonnes per day (TPD) of methanol and 100 TPD of carbon monoxide plant near its existing plants. Methanol and carbon monoxide are critical building blocks for producing several value-added chemicals such as formaldehyde, acetic acid, methyl carbonate and methylamines.

Haldor Topsoe, one of the world's most reputed technology licensors, will provide the process technology and the licence for methanol and carbon monoxide process.

L&T's scope of work comprises residual basic engineering, detailed engineering, project management and procurement of the equipment and materials for the plant. L&T will manufacture some of the critical equipment at its Powai and Hazira Works. L&T and Haldor Topsoe will also provide the technical services for the erection and commissioning of the plant.

L&T and Haldor Topsoe have a long association, having worked on many domestic and international hydrogen, ammonia and reformer projects. Haldor Topsoe's extensive experience in petrochemical projects in the world along with L&T's EPC capabilities will ensure delivery and successful commissioning of the plant meeting international standards, an L&T release said .

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L&T-Haldor Topsoe consortium to construct $150-million methanol plant in Saudi Arabia