ConocoPhillips & KBR to Provide Mid-Scale LNG Solutions

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ConocoPhillips COP recently agreed to partner with liquefied natural gas (LNG) engineer KBR, Inc. KBR to work on designing a mid-scale LNG train. The companies expect the design to be ready for LNG projects that will start in 2019.

ConocoPhillips, along with KBR, will create a front-end engineering and design (FEED) for mid-scale capacity LNG trains, having a capacity in the range of 1.5-3.0 metric tons per annum (MTPA). The design will be used in both new LNG projects as well as LNG facility upgradations.

The designing project, which will be built with integrated modularized construction, will use the Optimized Cascade® process technology of ConocoPhillips. This technology is currently in use in LNG plants, which account for around 23% of the total global LNG supply.

Notably, the pillar of the project was actually built in 2017, utilizing KBR's SmartSPEND SM  methodology to reduce the cost of the LNG facilities that applied the Optimized Cascade┬« technology. The latest project will appropriate this experience of cost reduction for providing mid-scale LNG solution, which is expected to face high demand in the market.

Once successful, the project will bring immense efficiency and operability for the mid-scale LNG trains. ConocoPhillips will also work with KBR for the large-scale LNG trains category, which is using similar technology and methodology to provide low unit costs and fast deployment.

Price Performance

Houston, TX-based ConocoPhillips has gained 57.7% in the past year compared with 35.8% collective growth of its industry .

Zacks Rank & Stocks to Consider

Currently, ConocoPhillips has a Zacks Rank #3 (Hold). Investors interested in the Oil and Gas sector can opt for some better-ranked stocks like Petroleo Brasileiro S.A. or Petrobras PBR and RGC Resources Inc. RGCO . While Petrobras sports a Zacks Rank #1 (Strong Buy), RGC Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company's top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.

Roanoke, VA-based RGC Resources' full-year earnings are expected to grow 5.8%. In the last reported quarter, the company delivered an earnings surprise of 40%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: PBR , KBR , COP , RGCO

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