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Researched by Industrial Info Resources (Sugar Land, Texas)--AMEC Foster Wheeler plc (NYSE:AMFW) (London, England) had a tough year in 2015, when revenues plunged amid weak commodity prices, and it expects to see further, although less dramatic, declines this year. According to Industrial Info's project database, there are $117.79 billion in active global projects involving the engineering and project-management company in some capacity, more than 80% of which are attributed to just three industries affected by low prices--Oil & Gas Production, Metals & Minerals and Terminals. Almost two-thirds of the total is attributed to the 10 highest-valued projects.
The single largest project to involve AMEC Foster Wheeler is facing numerous economic hurdles: Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) $25 billion LNG Canada Liquefaction Plant in Kitimat, British Columbia. The facility, on which AMEC is performing engineering services, is designed to feature two liquefied natural gas (LNG) trains, each with a capacity of 6 million metric tons per year, and two full-containment storage tanks, each with a capacity of 225,000 cubic meters. For more information, see Industrial Info's project report.
Shell owns 50% of LNG Canada, while PetroChina Company Limited (Beijing, China) holds 20%, and Mitsubishi Corporation (Tokyo, Japan) and Korea Gas Corporation (Seoul, South Korea) each hold 15%.
LNG Canada's outlook has dimmed in the past year as Shell's revenues have plunged and debts from various acquisitions have piled up. In February, Shell postponed a final investment decision on the Kitimat project until the end of 2016; earlier this month, Shell said it would slow the pace of its LNG investments altogether amid a global glut in LNG production and persistently low commodity prices. Still, there is some progress: British Columbia's Oil and Gas Commission recently approved the pipeline that would supply its LNG plant.
The largest Metals & Minerals Industry project to include AMEC Foster Wheeler also is facing plenty of challenges: Barrick Gold Corporation's (NYSE:ABX) (Toronto, Ontario) and NovaGold's (Vancouver, British Columbia) $5.4 billion Donlin Gold Mine and Mill in Crooked Creek, Alaska. The facility, which is the major component of a $6.7 billion project, involves building a 158 million-ton-per-year open pit mine, with a 53,500-ton-per-day flotation/pressure oxidation mill with cyanide-leaching circuits, to produce 1.1 million ounces per year of gold over 27-year mine life. AMEC is serving as a design consultant. For more information, see Industrial Info's project report.
Advocates of the mine say it will provide a significant economic benefit to one of the poorest parts of Alaska, according to Alaska Dispatch News. Opponents contend it will damage the Iditarod National Historic Trail and pollute nearby rivers, some of which host large numbers of Alaska's famous (and tasty) salmon. A draft review released in late November by the U.S. Army Corps of Engineers says the mine would bring risks, but calculates the chance of a catastrophe like a large diesel fuel spill or release of cyanide or mercury, would be very low, according to Alaska Dispatch News. However, the review will not be completed until late 2017.
But over in Canada, another mine is nearing completion, on time and on budget: K + S Aktiengesellschaft Group's (Kassel, Germany) $3.7 billion Legacy Potash Mine, Phase I, near Bethune, Saskatchewan. The first in a three-phase project, it involves building a solution mining operation and processing plant that initially will 1 million tons per year of potash, eventually ramping up to 2 million tons per year. AMEC is among the companies performing design-engineering services. The potash mine will be the first new facility of this kind in the province in more than 40 years, with the first produced tonne expected by the end of 2016. For more information, see Industrial Info's project report, and June 23, 2016, article - Expansion Envisioned as K+S Potash Legacy Mine Nears Commissioning in Saskatchewan.
The largest project involving AMEC Foster Wheeler in the Terminals Industry is in an increasingly important part of the Middle East: Oman Tank Terminal Company's $3.5 billion Ras Markaz Crude Oil Storage Terminal in Duqm, Oman. AMEC's British subsidiary, Amec Foster Wheeler UK (Glasgow, Scotland), is performing front-end engineering and design (FEED) services. The first phase, which has a capacity of about 25 million barrels, is expected to be online by the end of 2018. For more information, see Industrial Info's project report.
Oman hopes to become a global powerhouse in oil storage. According to Times of Oman, the Sultanate recently expanded Duqm's special economic zone to include the Ras Markaz terminal, which could allow its storage capacity to go as high as 200 million barrels. The Sultanate's current five-year plan (2016-20) targets all high-quantity crude-oil storage in the country, outside the Strait of Hormuz.
The six other highest-valued projects involving AMEC Foster Wheeler are:
The single largest project to involve AMEC Foster Wheeler is facing numerous economic hurdles: Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) $25 billion LNG Canada Liquefaction Plant in Kitimat, British Columbia. The facility, on which AMEC is performing engineering services, is designed to feature two liquefied natural gas (LNG) trains, each with a capacity of 6 million metric tons per year, and two full-containment storage tanks, each with a capacity of 225,000 cubic meters. For more information, see Industrial Info's project report.
Shell owns 50% of LNG Canada, while PetroChina Company Limited (Beijing, China) holds 20%, and Mitsubishi Corporation (Tokyo, Japan) and Korea Gas Corporation (Seoul, South Korea) each hold 15%.
LNG Canada's outlook has dimmed in the past year as Shell's revenues have plunged and debts from various acquisitions have piled up. In February, Shell postponed a final investment decision on the Kitimat project until the end of 2016; earlier this month, Shell said it would slow the pace of its LNG investments altogether amid a global glut in LNG production and persistently low commodity prices. Still, there is some progress: British Columbia's Oil and Gas Commission recently approved the pipeline that would supply its LNG plant.
The largest Metals & Minerals Industry project to include AMEC Foster Wheeler also is facing plenty of challenges: Barrick Gold Corporation's (NYSE:ABX) (Toronto, Ontario) and NovaGold's (Vancouver, British Columbia) $5.4 billion Donlin Gold Mine and Mill in Crooked Creek, Alaska. The facility, which is the major component of a $6.7 billion project, involves building a 158 million-ton-per-year open pit mine, with a 53,500-ton-per-day flotation/pressure oxidation mill with cyanide-leaching circuits, to produce 1.1 million ounces per year of gold over 27-year mine life. AMEC is serving as a design consultant. For more information, see Industrial Info's project report.
Advocates of the mine say it will provide a significant economic benefit to one of the poorest parts of Alaska, according to Alaska Dispatch News. Opponents contend it will damage the Iditarod National Historic Trail and pollute nearby rivers, some of which host large numbers of Alaska's famous (and tasty) salmon. A draft review released in late November by the U.S. Army Corps of Engineers says the mine would bring risks, but calculates the chance of a catastrophe like a large diesel fuel spill or release of cyanide or mercury, would be very low, according to Alaska Dispatch News. However, the review will not be completed until late 2017.
But over in Canada, another mine is nearing completion, on time and on budget: K + S Aktiengesellschaft Group's (Kassel, Germany) $3.7 billion Legacy Potash Mine, Phase I, near Bethune, Saskatchewan. The first in a three-phase project, it involves building a solution mining operation and processing plant that initially will 1 million tons per year of potash, eventually ramping up to 2 million tons per year. AMEC is among the companies performing design-engineering services. The potash mine will be the first new facility of this kind in the province in more than 40 years, with the first produced tonne expected by the end of 2016. For more information, see Industrial Info's project report, and June 23, 2016, article - Expansion Envisioned as K+S Potash Legacy Mine Nears Commissioning in Saskatchewan.
The largest project involving AMEC Foster Wheeler in the Terminals Industry is in an increasingly important part of the Middle East: Oman Tank Terminal Company's $3.5 billion Ras Markaz Crude Oil Storage Terminal in Duqm, Oman. AMEC's British subsidiary, Amec Foster Wheeler UK (Glasgow, Scotland), is performing front-end engineering and design (FEED) services. The first phase, which has a capacity of about 25 million barrels, is expected to be online by the end of 2018. For more information, see Industrial Info's project report.
Oman hopes to become a global powerhouse in oil storage. According to Times of Oman, the Sultanate recently expanded Duqm's special economic zone to include the Ras Markaz terminal, which could allow its storage capacity to go as high as 200 million barrels. The Sultanate's current five-year plan (2016-20) targets all high-quantity crude-oil storage in the country, outside the Strait of Hormuz.
The six other highest-valued projects involving AMEC Foster Wheeler are:
- $12 billion: Timor Gap E.P.'s Beaco LNG Production Plant in Viqueque, Timor-Leste
For more information, see Industrial Info's project report. - $10 billion: Sempra Energy's Cameron LNG Liquefaction Plant in Hackberry, Louisiana
For more information, see Industrial Info's project report. - $4.6 billion: D'Arcinoff Group Incorporated's synthetic fuel plant in Sierra Blanca, Texas
For more information, see Industrial Info's project report. - $4 billion: Sempra Energy's Cameron LNG Liquefaction Plant (trains 4 and 5) in Hackberry, Louisiana
For more information, see Industrial Info's project report. - $4 billion: Nigeria LNG Limited's liquefaction plant in Bonny, Nigeria
For more information, see Industrial Info's project report. - $3.3 billion: Western Potash Corporation's In-Situ Potash Solution Mine & Mill in Milestone, Saskatchewan
For more information, see Industrial Info's project report.
