BASF Project GIR Dahej India

Fluor was selected in mid-2011 by BASF as their engineering partner in Asia Pacific.

The €150 million BASF Dahej project is the first to be executed under this umbrella contract for BASF projects in Asia Pacific and is BASF's largest investment in India.

For Fluor, this is our first project in India for BASF with a focus on utilizing local engineering and locally sourced equipment.

The new site will be an integrated hub for polyurethane manufacturing and will house production facilities for care chemicals and polymer dispersions for coatings and paper. The chemical complex also comprises associated infrastructure, storage, utilities, and offsites.

Fluor 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 services for select areas of the project. Start of production at this large-scale GIR chemical complex is planned for 2014.

Client's Challenge

The project is BASF's largest investment in India at €150 million. This is one of the projects with three BASF business units involved at a single location with an opportunity to increase synergy within process plants and with shared infrastructure.

BASF is seeking both value engineering cost savings and engaging local engineering and local sourcing to help reduce costs. Managing the EPC contract within the appropriation budget and completion of the Infra project within schedule and cost with a high focus on environment, health, and safety are the key drivers for the Client.

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Fluor's Solution

Execution Strategy - As BASF's Engineering Partner in Asia Pacific, Fluor led a five-part execution approach to address the project scoping.

Fluor assisted 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 percent and a ±10 percent cost estimate within eight months.
Fluor also prepared 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 were the key to solicit competitive bids for the scope identified.
Fluor is currently executing 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.

Fluor has also been awarded to provide engineering, procurement, and construction management services for the Outside Fence Limits (OSFL) facility comprising of 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 .
Fluor is a team partner for the Integrated Project Management Team (IPMT) providing project management, quality, safety, integrated schedule, and construction management services for the chemical complex.

Conclusion

Partnership is surging ahead. The partnership concept introduced by BASF for the Asia Pacific region is moving in the desired direction with a focus on low cost local engineering and procurement solutions and reduction in overall project schedule by almost six months.

Various other BASF projects in the region are now in progress, following a similar execution strategy with a focus on providing value added services to our Client through Fluor's robust systems and procedures and BASF's strong governance procedures.

The project recently celebrated two million safe work hours.