DKRW terminates Sinopec contract

Officials looking to speed up EPC process

DRKW Advanced Fuels, LLC has terminated their contract with Sinopec Engineering. The cancellation of the contract was announced at last Friday’s Industrial Siting Council meeting in Cheyenne. Luke Esch, Industrial Siting Administrator, told the council at its quarterly update at the March 7 meeting that he had been contacted by Wade Cline about the termination of the contract.

K. Wade Cline, Executive Vice President and Construction General Counsel, said that the contract was canceled to allow DKRW to find another Engineering Procurement and Construction contractors (EPC) that would move the process forward.

Cline said that with the 39-month extension they received from the Industrial Siting Council in December, the company came to the realization they would need an engineering company that would help DKRW meet that deadline.

DRKW completed the front end engineering study in 2011, Cline said, and have the blueprints. Sinopec was to work on the engineering and management of the plant. “We own all the work that has been done by Sinopec,” Cline said.

Cline said they are talking with other engineering, procurement and construction contractors at this time. “We are looking at all different companies with the right expertise and available resources. Then we will make our decision.”

Cline said DKRW is still working toward to compete the construction plan by the end of the 39-month extension. “That is part of the reason we terminated our contract with Sinopec,” Cline said. DKRW wanted to find an EPC contractor that could move faster than Sinopec.

Cline said that DKRW still plans to use Wyoming and Rocky Mountain Region contractors on the “front end with hammers and saws”.

“Wyoming contractors will have priority,” Cline said.

 

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