Global engineering and construction major,
Foster Wheeler AG
), recently announced that it has been awarded an engineering,
procurement and construction (EPC) contract by Enterprise
Products Operating LLC - a subsidiary of Enterprise Products
Partners L.P. - to build a world-scale chemicals facility. The
financial details of the contract were not disclosed.
Enterpriseis a leading U.S. midstream company. It primarily
processes, transports and/or fractionates natural gas, natural
gas liquids, crude oil and refined products.
Foster and Enterprise inked a Foster Wheeler's Master Services
Agreement, under which the former will build the facility at Mont
Belvieu, Texas, for a propane dehydrogenation unit (PDH) and
associated power, utilities and infrastructure.
Moreover, as per the agreement, the initial EPC services
performed by Foster will be part of the company's second-quarter
2013 bookings. The balance of the EPC work will be a part of the
company's third-quarter 2013 bookings during which the company
also expects to execute the contract.
The contract has been awarded to one of the subsidiaries of
Foster's business group, namely Global Engineering and
Construction or Global E&C Group. Operating across the globe,
Global E&C Group designs, engineers and constructs onshore
and offshore upstream oil and gas processing facilities, natural
gas liquefaction facilities, terminals, gas-to-liquids
facilities, oil refining, chemical and petrochemical,
pharmaceutical and biotechnology facilities.
The recent contract win strengthens Foster's long-term ties
with Enterprise. Last month, Foster also inked a Master Service
Agreement with Enterprise to provide services for multiple
projects. The scope of the contract primarily involved supporting
Enterprise Products North American capital project program.
Foster currently carries a Zacks Rank #3 (Hold). Better-placed
stocks in the same sector that are worth a look include
Meritage Homes Corp.
). All of these stocks have a Zacks Rank #2 (Buy).
FOSTER WHELR AG (FWLT): Free Stock Analysis
MASCO (MAS): Free Stock Analysis Report
MERITAGE HOMES (MTH): Free Stock Analysis
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