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Global engineering and construction major, Foster Wheeler AG (FWLT - Analyst Report), recently announced that it has been awarded an engineering, procurement and construction (EPC) contract by Enterprise Products Operating LLC – a subsidiary of Enterprise Products Partners L.P. – to build a world-scale chemicals facility. The financial details of the contract were not disclosed.

Enterpriseis a leading U.S. midstream company. It primarily processes, transports and/or fractionates natural gas, natural gas liquids, crude oil and refined products.

Foster and Enterprise inked a Foster Wheeler’s Master Services Agreement, under which the former will build the facility at Mont Belvieu, Texas, for a propane dehydrogenation unit (PDH) and associated power, utilities and infrastructure.

Moreover, as per the agreement, the initial EPC services performed by Foster will be part of the company’s second-quarter 2013 bookings. The balance of the EPC work will be a part of the company’s third-quarter 2013 bookings during which the company also expects to execute the contract.

The contract has been awarded to one of the subsidiaries of Foster’s business group, namely Global Engineering and Construction or Global E&C Group. Operating across the globe, Global E&C Group designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities, terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities.

The recent contract win strengthens Foster’s long-term ties with Enterprise. Last month, Foster also inked a Master Service Agreement with Enterprise to provide services for multiple projects. The scope of the contract primarily involved supporting Enterprise Products North American capital project program.

Foster currently carries a Zacks Rank #3 (Hold). Better-placed stocks in the same sector that are worth a look include Masco Corp. (MAS - Analyst Report), Meritage Homes Corp. (MTH - Snapshot Report) and Potlatch Corp. (PCH - Snapshot Report).  All of these stocks have a Zacks Rank #2 (Buy).

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