Technip's 10 Top-Valued Projects Show Strong Role in Onshore, Offshore, LNG Markets

Researched by Industrial Info Resources (Sugar Land, Texas)--Technip S.A. (Paris, France), a leading engineering, project management and construction company for the global energy market, is doing strong business amid the downturn in oil prices. The company reported a total backlog of roughly 15 billion euros ($16.5 billion) at the end of the previous quarter--down from last year, but spread across onshore and offshore projects as well as technology, consulting and equipment work. Industrial Info's project database is tracking 273 projects, worth $145.35 billion, that involve Technip in some capacity; about 93% of the total investment value is attributed to just three industries: Oil & Gas Production, Petroleum Refining and Chemical Processing.

Last month, Technip signed a memorandum of understanding with FMC Technologies (NYSE:FTI) (Houston, Texas) to merge in an all-stock transaction. The new company will be named TechnipFMC. Industrial Info is tracking more than $25 billion in projects involving FMC; like Technip, its projects are heavily weighted toward the Oil & Gas Production and Chemical Processing industries, which make up more than 80% of the total investment value. U.S. antitrust authorities recently approved the proposed $13 billion merger, which is expected to wrap up in early 2017.

Although the Oil & Gas Production Industry alone accounts for more than half of the project spending involving Technip, the single largest project is in the Chemical Processing Industry: Petroliam Nasional Berhad's (Petronas) (Kuala Lampur, Malaysia) $5 billion steam cracker addition at the Pengerang Petrochemical Complex (RAPID) in Pengerang, Malaysia. The project, which is part of a larger, $27 billion complex, mainly involves building a cracker that will produce an estimated 1.1 million metric tons per year of ethylene. Technip's Malaysian subsidiary is performing construction management services. For more information, see Industrial Info's project report.

Petronas, the biggest investor in RAPID, recently reaffirmed its commitment to seeing the project through, but its subsidiary Petronas Chemicals Group Bhd (PetChem) reduced its investment in RAPID by about one-third, citing concerns about the prospects for the synthetic rubber segment, according to Malaysian newspaper The Star. PetChem said that the steep decline in global oil prices forced it to cancel a planned elastomers plant.

Technip Umbilical Systems, another subsidiary, is supplying equipment to the company's largest project in the Oil & Gas Production Industry: Total S.A. (NYSE:TOT) (Paris, France) and CNOOC Nigeria's (Lagos, Nigeria) $4.2 billion crude-oil floating production and storage offloading (FPSO) vessel, in the Gulf of Guinea, offshore Nigeria. The facility is expected to weigh 34,000 tonnes and have a capacity of up to 2.3 million barrels per day of crude oil in the Egina Field. For more information, see Industrial Info's project report.

The project, which is set to be completed in mid-2017, is a bright spot in West Africa's deepwater drilling market, which has seen a slew of cancelled projects and active well closures. Egina Field is among the projects that were greenlighted prior to the oil-market downturn, and thus are looking at better odds.

Technip also is performing design-engineering services for POLY-GCL Petroleum Holdings Limited's (Beijing, China) $4 billion, first-phase liquefied natural gas (LNG) liquefaction plant in Djibouti, Djibouti. The 3 million-tonne-per-annum facility will feature a single liquefaction train, supplied by 4 billion cubic meters per year of natural gas. For more information, see Industrial Info's project report.

Technip's largest project in North America is part of the Gulf Coast LNG buildout: Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) $3 billion LNG liquefaction plant in Lake Charles, Louisiana, for which Technip is performing front-end engineering and design. Near the company's existing LNG receiving terminal, it plans to build a liquefaction train to produce 5.5 million tons per year of LNG, with a total inlet capacity of 2.6 billion cubic feet of natural gas per year. For more information, see Industrial Info's project report.

The final investment decision on the Lake Charles project is expected later this year; BG LNG Services has signed a 20-year tolling agreement with Energy Transfer Partners for the offtake. The facility has received permit approvals from the U.S. Federal Energy Regulatory Commission (FERC) and approval from the U.S. Department of Energy (DoE) for export to Free-Trade Agreement (FTA) and non-FTA countries.

The six other highest-valued projects to involve Technip are:

• $10 billion: Petroliam Nasional Berhad's Pacific Northwest LNG liquefaction plant near Port Edward, British Columbia
  For more information, see Industrial Info's project report, and June 9, 2016, article - KBR Incorporated's 10 Top-Valued Projects Anchored in LNG, Offshore Drilling Markets.
• $7 billion: Sasol Limited's ECHO 1 Gas-to-Liquids Plant in Westlake, Louisiana
  For more information, see Industrial Info's project report, and June 7, 2016, article - Fluor Corporation's 10 Top-Valued Projects Highlight EPC Giant's Role in Nuclear, Oil & Gas Markets.
• $7 billion: Sasol Limited's ECHO 2 Gas-to-Liquids Plant in Westlake, Louisiana
  For more information, see Industrial Info's project report, and June 7, 2016, article - Fluor Corporation's 10 Top-Valued Projects Highlight EPC Giant's Role in Nuclear, Oil & Gas Markets.
• $5.7 billion: PTT Global Chemical Public Company Limited's Belmont County Ethylene Plant in Shadyside, Ohio
  For more information, see Industrial Info's project report, and June 7, 2016, article - Fluor Corporation's 10 Top-Valued Projects Highlight EPC Giant's Role in Nuclear, Oil & Gas Markets.
• $3.5 billion: Statoil ASA's Aasta Hansteen Offshore Gas Production Platform in North Sea, offshore Norway
  For more information, see Industrial Info's project report.
• $3 billion: Train 3 at Petroliam Nasional Berhad's Pacific Northwest LNG liquefaction plant near Port Edward, British Columbia
  For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.