Fluor Corporation (FLR - Free Report) has procured a front-end engineering and design (FEED) contract for Sasol’s Lake Charles Chemical Complex situated in Louisiana. This facility, once completed, will be a world-class ethane cracker and associated derivative chemicals facility of this Johannesburg-based integrated energy and chemical company, Sasol Ltd. The project is expected to begin operations by 2017 and is expected to produce 1.5 million of ethylene every year.
Valued at approximately $120 million, the contract is expected to be completed by the end of 2013. Fluor has booked the contract in its second quarter order book under the Energy and Chemicals group. The Lake Charles Chemical Complex is also the single-largest manufacturing investment ever made in Louisiana State.
Fluor and Sasol have been working together for over five decades on various projects ranging from coal to liquids and chemical facilities. Fluor Corporation has a strong presence and brand name in executing the FEED contracts in large petrochemical and petroleum companies. In March 2013, Fluor received a FEED (Front-End Engineering and Design) contract jointly from Qatar Petroleum and Royal Dutch Shell plc (RDS.A - Free Report) for the Al-Karaana Petrochemicals Complex in Ras Laffan Industrial City, Qatar.
Fluor currently has a Zacks Rank #4 (Sell), which might not be a good option at the moment. However, some other companies in the same sector that are worth considering at the moment are Chicago Bridge & Iron (CBI - Free Report) , Dycom Industries (DY - Free Report) and Emcor Group Inc. (EME - Free Report) . All three carry a Zacks Rank #1 (Strong Buy).
(We are reissuing this article to correct two mistakes. The original article, issued Wednesday, July 17, 2013, should no longer be relied upon.)