Essar Projects Bags $320 million Singapore contract

Essar Projects will construct storage tanks, jetties with loading and unloading arms and pipeline systems for the aromatics complex.

By ET Bureau | Jul 28, 2011, 03.30 AM IST

NEW DELHI: Essar Projects (EPL) has secured an engineering, procurement and construction contract worth $320 million from Jurong Aromatics Corporation of Singapore.

The contract will be a part of the $2.40-billion aromatics complex in Jurong Island of Singapore, EPL said in a statement on Wednesday.

EPL will construct storage tanks, jetties with loading and unloading arms and pipeline systems for the aromatics complex. The project will be executed by a subsidiary company of EPL in Singapore and will be completed by December 2013.

"This order is in line with the group's philosophy to actively participate in third party projects around the globe," said Alwyn Bowden, president and chief executive officer of EPL.

"A third of EPL's current order book of $6 billion comprises third party contracts and we plan to take this to 50% going forward," he said.

The Jurong project has participation from leading world petrochemical players, including Glencore, SK Engineering, Sanhai and Vinmar. The Singapore government has 5% stake in the project.

The complex will produce 1.5 million tonnes aromatics per annum, which will include chemicals such as transport fuels and benzene. Construction work on the project started in June this year and the complex is scheduled to go on-stream in 2014.

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