ABB Ltd, (ABB - Analyst Report) was recently selected as the primary electrical contractor for a new semi-submersible central processing facility at the Ichthys oil and gas field in Australia. The scope of the contract primarily includes providing a comprehensive electrical solution for the entire central processing facility. ABB intends to provide compact solution comprising a wide-range of its power products and systems.
At the central processing facility, gas from the field will go through initial processing in order to remove water and other raw liquids. This extraction also includes a large proportion of the condensate, which will be pumped to a floating production, storage and offloading vessel, from where it will be transferred to tankers for delivery to markets. The gas will be transported from the central processing facility through an 885 km pipeline to an onshore liquefied natural gas processing plant situated near Darwin, Australia.
The contract is the second major agreement that ABB has been awarded for the Ichthys oil and gas project. Last year, ABB received orders worth $80 million to supply power technologies and medium voltage drive systems for the new onshore LNG processing plant near Darwin.
The contract is valued at $15 million and is expected to be completed in 2016. ABB was awarded this contract by Samsung Heavy Industries, the primary engineering, procurement and construction contractor for the central processing facility at the Ichthys oil and gas field.
Located in the Timor Sea off Western Australia, the Icthys oil and gas field has a life span of 40 years and contains approximately 12.8 cubic feet of gas and 527 million barrels of condensate. Although in the initial stages, the Ichthys oil and gas field will be producing 8.4 million metric tons of liquefied natural gas and 1.6 million metric tons of liquefied petroleum gas per anum along with about 100,000 barrels of condensate a day at maximum production capacity.
Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company and currently has a Zacks Rank #2 (Buy). Some other players in the same industry, which can be considered buying at the moment are Franklin Electric (FELE - Snapshot Report), Chicago Bridge & Iron (CBI - Analyst Report). Another player Orion Marine Group (ORN - Snapshot Report) has a Zacks Rank #1 (Strong Buy).