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.
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 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
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.