(EnergyAsia, August 10 2011, Wednesday) — Houston, Texas-based KBR said it has secured a contract to provide ammonia technology, process design package and technical services for two ammonia synloop units at the China Coal Erdos Energy and Chemical Co Ltd in Tuke Industrial Park in Erdos city in China’s Inner Mongolia region.

China National Coal Group Corp (CNCGC), the owner China Coal Erdos Energy and Chemical Co Ltd, awarded the contract for the plants which each have a daily capacity to produce 1,660 metric tons of ammonia synloop.

This is a significant project for China’s second largest coal producer as it marks its entry into the coal-chemical industry. Due to limited natural gas supply, China will have to rely on coal-based feedstock for its new ammonia plants.

KBR said its experience with designing more than 200 plants of this kind has given it a competitive edge in the coal-chemical industry.

Over next five years, CNCGC plans to build five major coal production bases in the provinces of Shanxi, Jiangsu and Heilongjiang, and the Autonomous Regions of Inner Mongolia and Xinjiang Uyghur. These bases will be integrated into the company’s core businesses of coal mine construction, coal mining equipment manufacturing, coal production, coal-to-chemical production and power generation that will enable it to deliver across the entire coal value chain.

John Derbyshire, President of KBR Technology, said: “This project allows KBR to showcase its superior ammonia synthesis technology and promote our capabilities in this fast growing market segment.”

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets.