SNC-Lavalin wins $1.5bn contract for Omani plastics plant
The PVC plastics plant in Oman that SNC Lavalin will design and deliver is expected to cost up to $1.5bn
SNC-Lavalin has signed a contract to design and build a greenfield polyvinyl chloride (PVC) plastics plant 150km southeast of Oman's capital Muscat.
The agreement with Project Development & Management International (PDMI) covers the delivery of a greenfield chlor-alkali plant to produce PVC products that Oman will export across Asia.
SNC-Lavalin said the total construction of the project would cost up to $1.5bn (OMR576m).
Under the contract, Canadian construction and engineering firm SNC-Lavalin will support the project from concept development to commissioning. It will carry out initial engineering, master planning, process technology evaluation, and selection work for the scheme.
An engineering procurement, and construction management (EPCM) contract for the development is expected in Q1 2019.
SNC-Lavalin said it would manage the complete design and delivery of the project, working alongside local building contractors in Oman. The Canadian-based company will also support the maintenance of the PVC facility when it is built. A timeline for completion of the project was not disclosed.
President of oil and gas at SNC-Lavalin, Christian Brown, called the contract a "major strategic win" for the company. He added that the contract win would help to grow the company's business in the region.
“Oman is an important market for SNC-Lavalin where we have a long history of safely delivering complex major projects. We are pleased to be able to apply our international experience to such a significant project in the region while working hard to increase in-country value and help develop Oman’s resources.”
The plant will manufacture more than 250,000 tonnes (t) of PVC that will be shipped to Asia. Approximately 127,000t of caustic soda will also be produced per year to support domestic sectors.
Last year, SNC-Lavalin won a long-term framework contract from Petroleum Development Oman for commission and start-up support services for its upstream assets in Oman.
The company has also set up an academy in Muscat to train and develop graduate engineers in the specialist field of commissioning as part of its contract.