YPFB Awards FEED Contract for Gran Chaco Polyethylene Complex

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Researched by Industrial Info Resources (Cordoba, Argentina)--After executing a third international tender to select the company that would perform the front-end engineering design (FEED) studies for Gran Chaco ethylene and polyethylene plants, Bolivia´s state hydrocarbons company YPFB (La Paz, Bolivia) has selected the Italian company Tecnimont SpA (Roma, Italia). YPFB had declared void the first two tenders, in which Techint-Foster Wheeler (Buenos Aires, Argentina), Tecnimont SpA (Roma, Italia), Bolpegas-Hytech (Santa Cruz, Bolivia) and Granherne (Houston, Texas) had participated, because the parties did not meet all the requirements outlined in the bidding rules.

The selected company, Tecnimont SpA, has broad experience in the construction of polyethylene and polypropylene plants in 140 countries, including Saudi Arabia, Russia, Germany, India and Qatar. Technimont will provide not only the FEED, but also the studies to determine the capacities of the ethylene, low- and high-density polyethylene, and linear low and medium-density polyethylene plants. Tecnimont also will determine the technology used and offsite utilities that will support the new complex. The Gran Chaco Complex will be located next to a liquids separation plant in Yacuiba, in the Tarija department, that also is owned by YPFB and will provide the necessary raw material for the complex operations.

Studies are expected to be completed by the first half of 2013. In the second half, YPFB will call for tenders to select the company that will be responsible for the lump-sum turn-key for the complex, which is expected to begin operations early 2017. The construction of this complex will have a significant impact on Bolivia´s economy, exports and new employment. During the construction phase, the company expects to hire approximately 5,000 direct and indirect employees; once operational, there will be about 1,000 employees.

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