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Released March 29, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Two of America's top specialty energy-infrastructure contractors are headed to the altar: Primoris Services Corporation (NASDAQ:PRIM) (Dallas, Texas) is acquiring Willbros Group Incorporated (Houston, Texas). Both companies play key engineering and construction roles in the Chemical Processing, Power Generation, and Oil & Gas Production and Pipeline industries. Industrial Info is tracking nearly $6 billion in active projects involving the two companies, more than 90% of which are nearing or under construction.

The Chemical Processing Industry accounts for the bulk of these projects, led by one of the many methanol facilities destined for the U.S. Gulf Coast: Yuhuang Chemical Incorporated's (Houston) $1.4 billion methanol plant in Saint James, Louisiana. The first of a three-phase project, the plant is expected to produce about 1.9 million tons per year of methanol; when the second phase is complete, the plant will have a capacity of 3.3 million tons per year. About 40% to 60% of the product will exported to China, while 20% to 30% will be shipped by barge and rail to North American customers; the remainder will be used as captive feedstock for future downstream derivatives. For more information, see Industrial Info's project report.

AttachmentClick on the image at right for a graph detailing Primoris projects by state and investment value.

Primoris' James Construction subsidiary is at work on another closely watched chemical project on the Gulf Coast: Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) $11 billion Lake Charles Chemical Project (LCCP) in Westlake, Louisiana. James is performing civil-engineering services three key aspects for LCCP: a 420,000-metric-ton-per-year low-density polyethylene (LDPE) unit, a 450,000-metric-ton-per-year linear low-density polyethylene (LLDPE) unit, and a 300,000-ton-per-year ethylene oxide (EO) and ethylene glycol (EG) unit. Sasol recently announced that the project was 81% complete, and it plans to start up the first units late in the year. For more information, see Industrial Info's project reports on the LDPE unit, LLDPE unit and EO/EG unit, and February 27, 2018, article - Sasol Maintains Focus on Louisiana Petchem Project, 81% Complete.

Primoris also is at work on a variety of natural gas-fired power plants across the country. The largest is NRG Energy Incorporated's (NYSE:NRG) (Princeton, New Jersey) $600 million Carlsbad Energy Center in Carlsbad, California, which is expected to generate 600 megawatts (MW) from six General Electric (NYSE:GE) combustion turbines, each with a capacity of 100 MW. An old power plant is being demolished to make way for the new, simple-cycle facility, which is set to be completed in late 2019.

Also under construction is LS Power Group's (New York, New York) $235 million expansion of the Doswell Energy Center in Ashland, Virginia. Primoris will perform engineering, procurement and construction (EPC) services for the installation of two GE natural gas-fired combustion turbine, each with a capacity of 170 MW. Primoris also is attached to the proposed $350 million repowering of the Grayson Power Station in Glendale, California, which would add a 150-MW power plant comprising two combustion turbines and two simple-cycle turbines, all from Siemens AG (Munich, Germany). For more information, see Industrial Info's reports on the Carlsbad, Doswell and Grayson projects.

Willbros, meanwhile, is serving as general contractor on a series of pump stations to accommodate Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta) and Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) Ozark Pipeline expansion from from Cushing, Oklahoma, to Wood River, Illinois. The line's capacity is expected to jump from 215,000 to 345,000 barrels per day (BBL/d). Pump stations under construction include the: The acquisition has been unanimously approved by the boards of directors of both Primoris and Willbros, and is anticipated to close during the second quarter of 2018, subject to stockholder approval and other conditions. Late last year, Primoris acquired Coastal Field Services (Beaumont, Texas) and Florida Gas Contractors, both pipeline and maintenance contractors.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
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