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Released March 09, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) giant KBR Incorporated (NYSE:KBR) (Houston, Texas) is involved in more than $108 billion worth of active projects, according to Industrial Info's project database. The projects are spread across five continents, but are concentrated in the Oil & Gas Production, Chemical Processing and Petroleum Refining industries. They include more than $16.2 billion worth that are set to begin construction and about $16 billion worth that are set to finish construction in 2018.
KBR's backlog at the end of 2017 stood at $10.6 billion--down from $10.9 billion at the end of 2016, but expected to grow throughout 2018, following KBR's recent acquisitions of companies such as Stinger Ghaffarian Technologies Incorporated, which holds contracts with the National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA).
During the fourth quarter of 2017, KBR was awarded "pre-notice to proceed" services for Woodfibre Natural Gas Limited's (Squamish, British Columbia) $1.3 billion LNG liquefaction plant in Squamish, British Columbia, which involves converting a pulp mill into a facility to process 220 million standard cubic feet per day of natural gas into 2.1 million tons per year of liquefied natural gas (LNG), for export to Asian countries. Woodfibre expects the project to begin construction later this year. For more information, see Industrial Info's project report.
More than $63 billion of the $108 billion in active projects involving KBR are related to LNG--and more than half of that $63 billion is to be found in North America, where the U.S. and Canada expect to continue increasing their LNG exports for the foreseeable future. "LNG demand in China and India exceeded expectations [in the fourth quarter], and recent offtake announcements have been viewed as positive market indicators," said Stuart Bradie, the chief executive officer of KBR, in a recent earnings-related conference call.
One of the largest projects involving KBR is set to be completed in the coming months: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $5.1 billion Big Foot offshore oil and gas production platform in the Gulf of Mexico, which is the world's longest tension leg platform, at roughly a mile deep about 225 miles south of New Orleans. It is designed to produce up to 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas. Production from the platform had been expected to begin in late 2015, but Chevron ran into issues with the tendons that moor the platform in place; after years of suspended work, it is returning to the Gulf. For more information, see Industrial Info's project report.
KBR also is at work on $11.8 billion in active projects in the Middle East, almost all of which are to be found in Saudi Arabia and the United Arab Emirates (UAE). The single largest is Saudi Aramco's (Riyadh, Saudi Arabia) massive Jazan Refinery in Jizan, Saudi Arabia, which includes a $3.5 billion integrated gasification combined-cycle (IGCC) addition and $1 billion in offsite utilities, both of which are set to be completed later this year.
The IGCC complex will generate 3,850 megawatts (MW) from five power blocks, each of which feature two combustion turbines and a supplementary-fired steam turbine, provided by Siemens AG (Munich, Germany). The offsite plans include nitrogen, air, steam, condensate and water systems. KBR is performing front-end engineering and design (FEED) for both projects. For more information, see Industrial Info's reports on the IGCC and offsite projects.
The largest U.S.-based refining project to include KBR's services is BP plc's (NYSE:BP) (London, England) $360 million naphtha hydrotreater unit addition at a refinery in Whiting, Indiana. The 85,000-BBL/d unit is expected to reduce sulfur content in gasoline from 30 to 10 parts per million, in accordance with Tier 3 regulations. For more information, see Industrial Info's project report and March 8, 2018, article - ExxonMobil Expects to Double Earnings by 2025 as it Pours More into Capex.
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/.
KBR's backlog at the end of 2017 stood at $10.6 billion--down from $10.9 billion at the end of 2016, but expected to grow throughout 2018, following KBR's recent acquisitions of companies such as Stinger Ghaffarian Technologies Incorporated, which holds contracts with the National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA).
During the fourth quarter of 2017, KBR was awarded "pre-notice to proceed" services for Woodfibre Natural Gas Limited's (Squamish, British Columbia) $1.3 billion LNG liquefaction plant in Squamish, British Columbia, which involves converting a pulp mill into a facility to process 220 million standard cubic feet per day of natural gas into 2.1 million tons per year of liquefied natural gas (LNG), for export to Asian countries. Woodfibre expects the project to begin construction later this year. For more information, see Industrial Info's project report.
More than $63 billion of the $108 billion in active projects involving KBR are related to LNG--and more than half of that $63 billion is to be found in North America, where the U.S. and Canada expect to continue increasing their LNG exports for the foreseeable future. "LNG demand in China and India exceeded expectations [in the fourth quarter], and recent offtake announcements have been viewed as positive market indicators," said Stuart Bradie, the chief executive officer of KBR, in a recent earnings-related conference call.
One of the largest projects involving KBR is set to be completed in the coming months: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $5.1 billion Big Foot offshore oil and gas production platform in the Gulf of Mexico, which is the world's longest tension leg platform, at roughly a mile deep about 225 miles south of New Orleans. It is designed to produce up to 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas. Production from the platform had been expected to begin in late 2015, but Chevron ran into issues with the tendons that moor the platform in place; after years of suspended work, it is returning to the Gulf. For more information, see Industrial Info's project report.
KBR also is at work on $11.8 billion in active projects in the Middle East, almost all of which are to be found in Saudi Arabia and the United Arab Emirates (UAE). The single largest is Saudi Aramco's (Riyadh, Saudi Arabia) massive Jazan Refinery in Jizan, Saudi Arabia, which includes a $3.5 billion integrated gasification combined-cycle (IGCC) addition and $1 billion in offsite utilities, both of which are set to be completed later this year.
The IGCC complex will generate 3,850 megawatts (MW) from five power blocks, each of which feature two combustion turbines and a supplementary-fired steam turbine, provided by Siemens AG (Munich, Germany). The offsite plans include nitrogen, air, steam, condensate and water systems. KBR is performing front-end engineering and design (FEED) for both projects. For more information, see Industrial Info's reports on the IGCC and offsite projects.
The largest U.S.-based refining project to include KBR's services is BP plc's (NYSE:BP) (London, England) $360 million naphtha hydrotreater unit addition at a refinery in Whiting, Indiana. The 85,000-BBL/d unit is expected to reduce sulfur content in gasoline from 30 to 10 parts per million, in accordance with Tier 3 regulations. For more information, see Industrial Info's project report and March 8, 2018, article - ExxonMobil Expects to Double Earnings by 2025 as it Pours More into Capex.
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/.
