Foster Wheeler AG ( FWLT ) recently announced that its subsidiary- Global Engineering and Construction Group received a contract from Marubeni Corporation for the KazMunayGaz oil refinery based in Kazakhstan.
Per the contract, Foster Wheeler is required to supply a Terrace Wall reformer for a hydrogen production unit at the refinery, along with an air preheating system. This unit, having an hourly capacity of 24,000 normal cubic meters, is designed on the lines of Foster Wheeler's hydrogen technology. The company expects to complete its work by Apr 2015.
The financial terms of the contract, booked in the first-quarter 2014 records, remained undisclosed. The contact was awarded by Marubeni on behalf of the consortium of Marubeni, SINOPEC Engineering (Group) and KazStroyService.
Foster Wheeler's Terrace Wall reformer is equipped with a firing arrangement and also has a sloped-wall radiant section. These two features extend the catalyst tube life significantly while facilitating the extension of the reformer's operating envelope. This can significantly improve the quantity of hydrogen produced so as to exceed the maximum design capacity of the unit. Further, its Terrace Wall steam reformers comply with the environmental emission standards by deploying the ultra-low-NOx burners for the operation. The company has already supplied more than 200 units to refining and petrochemical majors in over 40 countries across the globe.
Foster Wheeler currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Emcor Group Inc. ( EME ), Sterling Construction Co. Inc. ( STRL ) and Tutor Perini Corporation ( TPC ). All three carry a Zacks Rank #2 (Buy).