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Twin Contracts for Foster Wheeler

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Foster Wheeler AG received an Australian contract for the design and supply of three utility package steam generators located at the Ichthys Project. The project involves onshore LNG facilities at Blaydin Point, near Darwin, Northern Territory.

The contract was awarded by the joint venture comprising CH2M HILL Australia Pty Ltd. and UGL Engineering Pty Ltd. to a subsidiary of Foster Wheeler’s Global Power Group. The terms of the deal remains undisclosed but the contract is included in the company’s first quarter 2013 bookings.

Foster Wheeler has full authorization to commence the work. Delivery of the new steam generators is scheduled for fourth quarter 2014.

For the Ichthys Project, Foster Wheeler will design and supply the package steam generators as well as auxiliary equipment. The design will be as per environmental regulatory requirements for burning both low pressure natural gas and liquid iso-pentane. Total capacity of the three steam generators is expected to be 278 tonnes per hour.

Foster Wheeler has more than 60 years of experience in designing steam generator product range.

The company also received a study contract from the Energy Technologies Institute (ETI). The contract was awarded to the Global Engineering and Construction Group of the company.

Over the five year of study, Foster wheeler together with the British Geological Survey will assess the economics of flexible power generation systems. These systems involve the production of hydrogen from coal, biomass or natural gas, the intermediate storage of hydrogen (for example in underground salt caverns) and the production of power in flexible turbines. Although the value of the contract remains undisclosed, the contract is included in the company’s first quarter 2013 bookings.

Foster Wheeler operates through two business groups: the Global Engineering and Construction Group - or Global E&C Group - and the Global Power Group.

The Global E&C Group operates worldwide and designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure, including power generation and distribution facilities, and gasification facilities.

 The Global Power Group designs, manufactures and erects steam generating and auxiliary equipment for electric power generating stations and industrial facilities worldwide.

Fluor currently has a Zacks Rank #3 (Hold) while some of its competitors such as Quanta Services Inc. (PWR - Free Report) has a Zacks Rank #1 (Strong Buy) and Aecom Technology Corporation (ACM - Free Report) carries a Zacks Rank #2 (Buy).

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