Budapest – MOL has signed an engineering and procurement agreement with thyssenkrupp Industrial Solutions (Thailand) for its HPPO propylene oxide project.
This is part of the company's strategy to become the only integrated polyol producer in Eastern Europe.
The contract covers the entire technical scope of the project, apart from some commissioning and infrastructure costs. Some details of plant integration and project management are also excluded.
The project will have capacity for 200 kT/year polyether polyols, which is larger than originally planned. The plant will also feature a propylene glycol plant 'to maximise operational and commercial flexibility.'
In total the Hungarian petrochemical company will invest EUR 1.2bn. The plant is scheduled to be in operation in 2021 and, the company added that construction should start in the fourth quarter of 2018.
Zsolt Hernadi is MOL's group chairman. He said the project will enable his company to enter the 'knowledge-intensive, high value-added chemicals market with an innovative and environmentally friendly technology. It will allow us to capitalise on rising regional demand and to exploit additional growth opportunities in central and eastern Europe'.
Previously, in October 2017, MOL said it was going to use thyssenkrupp's Jet Reactor HPPO technology in the project.
