MOSCOW (MRC) -- The re-tendering process of the construction works that was started after Borealis terminated all contracts with the IREM group of companies, Borealis’ main contractor for the construction of its new PDH plant in Kallo, has now been completed, said the company.
With this, the construction of this mega project is now back on track. Works will again fully ramp up during the summer of 2023.
The re-tendering, re-mobilisation, poor handover and inefficiencies caused by the termination of the IREM contracts results in significant delays. Borealis’ new PDH plant in Kallo is now estimated to start up in the first half of 2025.
The updated project plan provides for a substantial increase in costs.
As a consequence of the increased cost and longer lead-time, Borealis is claiming compensation from the IREM companies.
We remind, Borealis will implement Honeywell’s UniSim Live software as early adopters to build process models for optimizing operations through virtual process simulation. UniSim Live will allow Borealis to extend the utility of process models to near real-time process monitoring and focus on early event detection by using digital twins to improve plant reliability.