BASF Project GIR Dahej India

Client: BASF

Location: Dahej, India

Map showing the location of BASF Project GIR Dahej India

Executive Summary

Fluor was selected in 2011 by BASF as their engineering partner for the Asia Pacific region. The BASF Dahej project was the first to be executed under this umbrella contract for BASF projects in Asia Pacific and was BASF's largest investment in India at the time. This was our first project in India for BASF, with a focus on utilizing local engineering and locally sourced equipment.

The new site was constructed as an integrated hub for polyurethane manufacturing, housing production facilities for care chemicals and polymer dispersions for coatings and paper. The chemical complex also comprised associated infrastructure, storage, utilities and offsites.

We assisted BASF's three business units by preparing the front-end engineering and design (FEED) package, reducing costs through value engineering, increasing synergy among the process plants and performing engineering, procurement and construction management (EPC) services for select areas of the project. Production at the GIR chemical complex started in 2014.

Client's Challenge

The project was BASF's largest investment in India to date. The projects included three BASF business units at a single location, with an opportunity to increase synergy within process plants and with shared infrastructure.

BASF's project objective involved seeking value engineering cost savings, as well as engagement of a local engineering partner and local sourcing to help reduce costs. Managing the EPC contract within the appropriation budget and completion of the infrastructure facilities within schedule and cost with a high focus on environment, health and safety were the main drivers for BASF.

Fluor's Solution

As BASF's engineering partner in Asia Pacific, we led a five-part execution approach to address the project scoping:

Assisting BASF's three business units by preparing the FEED package, reducing costs through value engineering, increasing synergy among the process plants and submitting a ±30% and a ±10% cost estimate within eight months of the award.
Preparing the RFP for the EPC contractor selection for the three production plants and assisted BASF in technical evaluation of the bids submitted. The clarity of the scope definition and details in the FEED package was the key to solicit competitive bids for the scope identified.
Executing the engineering, procurement and construction management services for the utilities and offsites for the plant along with the integrated infrastructure, including non-plant buildings, DM plant, boiler, cooling tower, thermal oxidizer, compressor, tempered water package, waste water treatment, 66-KV switchyard, F&G and auxiliary system, etc.
Providing engineering, procurement and construction management services for the outside fence limits (OSFL) facility, comprising 66-KV incomer, raw water supply, storm water discharge and effluent discharge along with procurement for owner supply items and contracts administration and construction management for the same.
Within the Integrated Project Management Team (IPMT), providing project management, quality, safety, integrated schedule and construction management services for the chemical complex.

Conclusion

The partnership concept introduced by BASF for the Asia Pacific region resulted in low-cost local engineering and procurement solutions for the project and a reduction in overall project schedule by almost six months, clearly demonstrating the success of the endeavor.

Fluor was awarded the Safety Excellence Award for completing 10 million safe work hours.