Italy's Tecnimont Awarded FEED Contract for Asian Petrochemical Project, Planned to Transition to EPC in Early 2028

en.Wedoany.com Reported - On September 17, Italy's MAIRE Group announced that its subsidiary Tecnimont has been awarded a front-end engineering design (FEED) and open book cost estimate (OBCE) contract for a petrochemical project in Asia. The contract scope of work includes preparing the engineering design package, determining the project's key technical requirements, and completing the project cost estimate, providing a basis for the owner's subsequent investment decision and project execution. MAIRE did not disclose the project's host country, owner name, contract value, or specific unit types.

Under the current arrangement, Tecnimont will be responsible for the main engineering and technical work during the project's FEED phase, including establishing the design basis and technical requirements needed for subsequent project construction, while establishing a project cost baseline through the OBCE approach. The FEED work is expected to be completed in early 2028.

MAIRE disclosed that after the FEED phase concludes, if the owner makes a final investment decision (FID), the existing contract is expected to be further converted into an EPC contract. Accordingly, Tecnimont's current participation phase already covers the project's preliminary engineering design and cost estimation, while retaining a contractual linkage arrangement for subsequent engineering, procurement, and construction general contracting.

This award is still at an early stage of project development. The currently defined implementation chain is "FEED and OBCE—Owner's final investment decision—EPC," with early 2028 being the planned completion milestone for the current FEED phase. The project's capacity, feedstock route, main products, construction location, equipment procurement scale, and planned commissioning time have not yet been disclosed.

Tecnimont has long been engaged in petrochemical plant engineering, with its existing projects covering polyethylene, polypropylene, HDPE, LDPE, propane dehydrogenation, and other petrochemical units, and its business models including FEED, EP, EPC, and EPCC. This contract continues to adopt the project development model of transitioning from preliminary engineering design to subsequent EPC.