Key Process-Plant Specific Clauses In Process-Plant EPC Contracts

Feedstock and product storage

Mostly, EPC Contracts will not provide for the handover of the facility to the project company until all commissioning and reliability trialing has been successfully completed. The raises the significant issue of the supply of feedstock and other consumables and receipt of product during testing and commissioning. The EPC Contract must clearly define the obligations of the project company in providing feed stock and sufficient storage or product demand to fully and properly commission and test the facility.

Given that the project company's failure will stein from restrictions imposed on it under its supply or off take agreements, the best answer is to match the project company's obligations under the EPC Contract with its supply and off take agreements. This approach will not eliminate the risk associated with commissioning and testing issues but will make it more manageable.