Leading automation and power technology group
) and Australia-based QGC, a wholly-owned subsidiary of BGC
Group, have recently signed a long-term service agreement (LTSA).
Under this LTSA, ABB will provide maintenance services for
facilities at Queensland Curtis Liquefied Natural Gas (QCLNG)
project in Queensland, Australia. The contract is valued at $33
million for a four-year period and will be booked in the third
and fourth quarters of the company.
The scope of this agreement requires ABB to maintain both
planned and unplanned maintenance at QCLNG, which is pioneering a
process to convert coal-steam gas to liquefied natural gas. ABB
will be providing integrated services to maintain its Extended
Automation System 800xA Integrated Control and Safety Systems
(ICSS) for the up-stream and mid-stream facilities of the
The deal also entails ABB to take care of the spare parts
required for the upstream collection, transportation, and
liquefaction in midstream along with the exportation. The
contract can be extended up to 10 years.
QCLNG is of significant importance for QGC as it is aimed to
expand exploration and development in major areas of Queensland
that include its southern and central regions. Coal steam gas is
a better substitute for coal as energy production is same from
both the sources but with a comparatively 40% lesser carbon
dioxide emission. The coal steam gas is collected at the upstream
facility in Surat basin located in eastern Australia from where
it is transported to the LNG plant on Curtis Island via a 540 Km
Prior to this, ABB had also received a $58 million contract
from QGC in 2011. It was selected as the Main Automation
Contractor (MAC) for providing diverse services including
integrated automation, safety and telecommunications systems
along with providing the equipments required for the upstream
coal-seam gas project.
ABB currently carries a Zacks Rank #3 (Hold). Other stocks
worth considering at the moment include
AO Smith Corp.
), bothof which haveaZacks Rank #1 (Strong Buy), and
) that carries a Zacks Rank #2 (Buy).
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