BASF YPC Integrated Petrochemical Site Phase II - EPC

Client: BASF-YPC

Location: Nanjing, China

Map showing the location of BASF YPC Integrated Petrochemical Site Phase II - EPC

Executive Summary

IPS II, the second expansion phase of the BASF YPC Integrated Petrochemical Site, increased production capacity for ethylene products, added fine-chemical plants and expanded site utilities and infrastructure. Fluor was part of an international consortium, with Toyo and Daelim, responsible for engineering management, procurement and construction management of its portion of the project.

We were selected by BASF in mid-2011 as its engineering partner in Asia and Europe. As a follow-on demonstration of client confidence, in April 2012 BASF subsequently named Fluor as its engineering partner for chemicals capital projects across North America. The North America umbrella services agreement applied to all BASF facilities in the United States, Canada, Mexico and Puerto Rico.

Client's Challenge

BASF-YPC Co. Ltd. is a joint venture of BASF and the Sinopec Yangzi Petrochemical Co., Ltd. The venture's $2.9 billion Integrated Petrochemical Site (IPS) contains a 600,000 metric ton/year ethylene plant and nine other world-scale process plants. It produces millions of tons per year of high-quality chemicals and polymers for the rapidly growing Chinese market.

IPS II was the second phase of investment at the site, which included $1.4 billion worth of new production plants and plant expansions, expansion of utilities and auxiliary facilities inside the production area and expansion of storage and transportation facilities.

On a sole-source basis, the client chose the partnership of Fluor, Daelim of Korea and Toyo of Japan as a contractor based on its performance during IPS Phase I.

Fluor's Solution

The contractor partnership with Daelim and Toyo during the first phase of the BASF-YPC had created a multidimensional perspective that built a mutually dependent work ethos. Teaming also improved risk management and resource utilization, as well as the ability to leverage the local advantages.

The team achieved 11 years of cooperation in 2010, having executed other China projects in the meantime. The projects helped the partnership grow in areas like communication, goal alignment and project execution experience with the local workforce.

Conclusion

Fluor has built a legacy of project success in the People's Republic of China, completing this and other engineering, procurement and construction (EPC) megaprojects there in the previous decade. The projects have always involved the specific skills that we have developed in collaboration with other companies, whether they be partners or clients.

BASF selected us as an engineering partner for chemicals and petrochemicals projects across Asia and Europe in mid-2011. Under this agreement, we would provide front-end engineering and design (FEED), project management services and/or detailed engineering, procurement and construction management services.

As a follow-on demonstration of client confidence, in April 2012 BASF subsequently named Fluor as its engineering partner for chemicals capital projects across North America. The North America umbrella services agreement applied to all BASF facilities in the United States, Canada, Mexico and Puerto Rico.