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Case Study

Detailed feasibility study for investment evaluation

Looking down a path in between two sections of a chemical plant, at night, with several lights shining

Our technical and economic evaluation guided investment decisions around ethylene cracker and derivatives in the Middle East, including a market study, full configuration development, licensor evaluation and financial analysis.

The challenge

A detailed study for a leading global petrochemicals producer to explore the feasibility of an ethylene cracker and derivatives project in the Middle East. 

Our approach

Our client wanted to evaluate the technical and economic feasibility of a cracker complex consisting of an ethane cracker and ethylene derivatives unit. We undertook the study in three phases: 

Phase 1 ‒ Configuration development and market study: A market study provided context on potential olefin derivatives to aid in the identification of a range of process configurations which converted the available feedstock into value-added petrochemical products.  Material balances and project parameters for each configuration were generated and a favored configuration was selected using a balanced scorecard methodology aligned with the client’s strategy.

Phase 2 ‒ Licensor evaluation: This involved a review of potential licensors for each of the processes in the selected configuration, development of technology licensor invitation-to-bid documents and licensor engagement. Licensors’ technical packages and commercial offerings were evaluated and ranked. 

Phase 3 ‒ Project development and financial analysis: Developed the following deliverables for the selected project configuration:

  • Class IV CapEx estimate
  • Utilities and infrastructure review
  • Site assessment and selection
  • Economic model and financial analysis
  • Contracting strategy
  • Project execution plan
  • Level 2 project schedule
  • Risk register
  • Initial environmental assessment

Value delivered

Our evaluation of the technical and economic benefits and risks of the project gave our client the guidance needed to decide if they would move forward.