McDermott Awarded Paraxylene (pX) Technology Contract in China

HOUSTON, TX -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Ningbo Union King Polyester Material Limited for the technology license, process design engineering, and operator training services for a large-scale, grassroots 1,600 KTA paraxylene (pX) plant at Ningbo Union King's petrochemicals facility in Ningbo, China. Lummus Technology is the exclusive licensor of BP's pX technology, which offers pX production at purities of 99.8 percent with lower energy consumption and lower capital costs compared to more traditional pX technologies.

'Paraxylene is a critical component in various polymers such as polyester and thus an important piece of the worldwide petrochemicals market,' said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. 'This large-scale pX plant will help meet growing petrochemicals demand, particularly in China.'

McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.

This award was reflected in McDermott's first quarter 2019 backlog.

*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.