ICA-Fluor JV Authorized to Proceed with Pemex Diesel Project
Engineering and construction firm Fluor Corporation 's FLR industrial engineering and construction joint venture with Empresas ICA, S.A.B. de C.V. ICA - ICA Fluor - had been sanctioned by Pemex Transformación Industrial to move ahead with the engineering, procurement and construction (Phase II) of the Madero Clean Diesel project at the Madero Refinery in Tamaulipas, Mexico.
ICA Fluor will deliver comprehensive engineering, procurement, construction, commissioning and start-up services for two diesel hydrodesulfurization trains and related facilities. The project also includes revamps tied to the existing refinery operation and installation of new hydrogen, sulfur recovery and sour water treatment plants.
The project is scheduled to be completed in the first quarter of 2018.
The project is a part of Pemex's clean fuels program, and is intended to boost Mexico's production of ultra-low sulfur diesel in compliance with relevant environmental standards. Just last month, the Mexican government said that Pemex expects to invest $23 billion in the upcoming years in projects which will help increase production of clean fuels, modernize its refinery system, and develop its crude-oil processing capacity. Some such investment projects are already underway.
The project is valued at $1.1 billion, of which Fluor's share of $550 million will be accounted in its fourth-quarter 2015 bookings.
ICA Fluor and Pemex have collaborated in the past for building the delayed coker unit at the Miguel Hidalgo Refinery in Tula, Hidalgo, Mexico.
Flour currently sports a Zacks Rank #2 (Buy), while ICA carries a Zacks Rank #4 (Sell). Other stocks worth considering in the industry include Chicago Bridge & Iron Company N.V. CBI and Granite Construction Inc. GVA , both holding the same Zacks Rank as Fluor.
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