Fluor Wins FEED Contract from Sasol (revised) - Analyst Blog
) 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 ) 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 ), Dycom Industries ( DY ) and Emcor Group Inc. ( EME ). 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.)
CHICAGO BRIDGE (CBI): Free Stock Analysis Report
DYCOM INDS (DY): Free Stock Analysis Report
EMCOR GROUP INC (EME): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report
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