A subsidiary of Foster Wheeler AG’s Global Engineering and Construction Grouprecently received a contract from Wood Mackenzie to provide consultancy services for two projects in Peru. The value of the contract was not disclosed, but Foster will include the contract in its second quarter bookings.
The two projects that require consultancy services include the Energy Security and South Pipeline Project in Peru. According to the contract, Foster is required to develop the design and give a cost estimate for both these projects. Foster expects to complete its work by the fourth quarter of 2013.
Both the Energy Security and South Pipeline projects comprise the development of pipelines to support the existing natural gas and natural gas liquids transportation system from Las Malvinas to the Chiquintirca compression station.
The South Pipeline Project will transport the existing natural gas transportation system to the south coast. The Energy Security project requires the establishment of thermoelectric power generation plants having a capacity of up to 2,000 megawatts to promote the development of an energy center and petrochemical complex at the southern part of the country.
Foster Wheeler’s Global E&C Group provides technical and economic analyses and study reports to owners, investors, developers, operators and governments. These services include concept and feasibility studies, market studies, asset assessments, environmental assessments, energy and emissions management, product demand and supply modeling and technology evaluations. Recently, the Global E&C Group received a contract from Statoil ASA (STO - Analyst Report) to conduct a feasibility study to upgrade the latter’s Mongstad Refinery in Norway.
Foster currently has a Zacks Rank #2 (Buy). Other stocks in the industry worth buying at the moment are Pernix Group Inc. (PRXG) and VSE Corp. (VSEC - Snapshot Report). Both have a Zacks Rank #2 (Buy).