The financial details of the contract were not disclosed.
Under the contract, CB&I will provide the license and engineering design for the grassroots PDH unit that will be constructed in Ulsan, Korea.
South Korea-based SK gas is an importer and distributor of liquefied petroleum gas (LPG).
The PDH unit will use the CATOFIN dehydrogenation process from Lummus Technology to produce 600,000 metric tonnes per year of propylene.
CB&I Technology operating group president Daniel McCarthy said, "We are pleased to be able to provide this cost-effective and reliable route to on-purpose propylene to meet SK gas’ plans to expand their product portfolio."
The startup of the largest PDH unit in Korea is expected in 2016, according to the company statement.