Re-tendering process for construction works in Kallo concluded
Project update on Borealis’ Propane Dehydrogenation (PDH) plant construction in Kallo, Belgium
Periodical news update regarding the Kallo PDH mega project.
Find our previous news on this topic of 23 January 2023 here.
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.
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.
Previous related news:
- Borealis suspends contract with IREM-Ponticelli and declares a three-day stand-still for its construction site in Kallo, Belgium (27 July 2022)
- Borealis prolongs stand-still for its PDH plant construction site in Kallo, Belgium (1 August 2022)
- Borealis suspends construction in Kallo after serious allegations against contractor and continues to support Belgian authorities in investigation (4 August 2022)
- Borealis to retender the majority of contracts for PDH construction site in Kallo, Belgium, after termination of all contracts with IREM (18 August 2022)
- Borealis restarts PDH construction site in Kallo with Ponticelli as contractor (3 October 2022)
- About the Kallo case (comprehensive summary, 23 January 2023)