) recently received an engineering, procurement and construction
(EPC) contract from Algerian oil and gas company Sonatrach for a
new liquefied petroleum gas (LPG) pumping station. The contract
is valued at $100 million and the order was booked in the fourth
quarter of 2012. The contract includes capacity expansion of LR1
pipeline in Algeria. The plant is expected to be complete by Mar
The new pumping station situated in the Hassi Messaoud
District is part of an expansion project to add a second LPG
pipeline between Haoud El Hamra and Hassi R'Mel. The primarily
objective of this 400-km pipeline is to increase transportation
capacity from 4.5 million tons a year to 11 million tons.
As per the terms of the contract, ABB will be responsible for
the design, engineering, procurement, commissioning and start-up.
However, the construction and installation part of the project
will be handled by Sarpi, which is a 50% joint venture company
owned by ABB and Sonatrach. In addition, ABB will also provide a
comprehensive LPG pumping station including electrical, piping
and mechanical equipments.
The contract would expand the connectivity of Hassi R'Mel,
Algeria's largest gas field and also the center of the country's
natural gas transport network; as it is from here that gas is
transported by pipeline to terminals on the Mediterranean coast
for export to European countries or for processing into liquefied
Prior to this, in 2009, ABB had received a $490 million worth
contract to supply approximately 900 km of trunkline and
flowlines and install about 600 km of them in Algeria. Apart from
this, ABB has other projects that are under execution including
the field infrastructure for the El Merk oil and gas fields, a
contract worth $650 million and one of the largest EPC contracts
in ABB's history, a gas flaring elimination project at Haoud
Berkaoui, and the delivery of utilities, storage and export
facilities for the central processing plant at Menzel Ledjmet
East in the Berkine Basin.
ABB currently has a Zacks #3 (Hold). However, some other
companies operating in the similar industry and worth considering
at the moment are
Orion Marine Group Inc
Willdan Group Inc
Harris & Harris Group Inc.
), all having a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
ORION MARINE GP (ORN): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
WILLDAN GROUP (WLDN): Get Free Report
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