LyondellBasell to Build Giant PO Plant
Fluor Wins FEED Contract Again, this time for LyondellBasell
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Engineering and construction firm Fluor Corporation (FLR – Analyst Report) was recently selected by the multinational chemical company LyondellBasell (LYB – Analyst Report) to offer front-end engineering and design (“FEED”) services for the latter’s upcoming propylene oxide and tertiary butyl alcohol plant. Though the value of the contract was kept under wraps, Fluor has booked it under the fourth quarter of 2015.
LyondellBasell’s upcoming plant, housed in Channelview and Bayport Choate complexes in Texas, is being constructed on a grand scale, and post completion, it will be the world’s largest of its kind. Under the deal, Fluor is required to provide FEED services for a 1 billion pound-per-year propylene oxide and 2 billion pound-per-year tertiary butyl alcohol plant at Channelview, as well as another plant at Bayport Choate site. Fluor expects to complete the work by 2016.
For Fluor, this contract comes within less than 24 hours of winning another major contract for offering engineering, procurement and construction management (“EPCM”) services to Cutbank Ridge Partnership Program in Canada. Also, last month, the company secured two subcontracts from the U.S.-based nuclear power firm, Westinghouse Electric Company, for management of workforce at two of the latter’s AP1000 nuclear plants. With these deals, Fluor has booked $5 billion in contracts for fourth quarter of 2015.
The recent contract wins highlight Fluor’s capability of providing high-quality engineering, procurement, fabrication and construction solutions. The company won several front-end engineering awards, especially in its oil & gas segment, during the third quarter. These will likely aid its top-and bottom-line performance in the fourth quarter, results for which will are expected on Feb 18, 2016.