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Researched by Industrial Info Resources (Sugar Land, Texas)--Like many other leading engineering, procurement and construction (EPC) companies, CH2M Hill (Englewood, Colorado) is finding plenty of work amid the U.S. natural gas boom. But it's also establishing a strong role in other markets, such as transportation, in which Engineering News-Record recently ranked it among the top three EPC companies. More than 80% of the total investment value of the projects with ties to CH2M Hill is attributed to just three industries: Oil & Gas Production, Oil & Gas Pipelines, and Industrial Manufacturing. The 10 highest-valued projects alone account for almost 60% of the total.
The two highest-valued projects involving CH2M Hill are part of Chevron Corporation's (NYSE:CVX) (San Ramon, California) $45 billion-to-$65 billion Alaska LNG Project, which would produce liquefied natural gas (LNG) and ship it to overseas markets: the $15 billion LNG liquefaction production and export terminal on the Kenai Peninsula and the $7.5 billion LNG gas treatment plant in Prudhoe Bay. On both projects, CH2M Hill was awarded contracts for pre-front-end engineering and design (pre-FEED) for controls, marine studies, logistics & construction planning, cost estimating and project scheduling.
The Kenai project involves the construction of trains to liquefy 2.2 billion to 2.5 billion cubic feet per day of natural gas, for a total of about 18 million tons per year of LNG. Earlier this year, the Kenai facility, which was the first LNG export facility in the U.S., received approval from the U.S. Department of Energy (DoE) to export about 40 billion cubic feet of natural gas over the next two years. According to Reuters, the approval will allow exports to any country the U.S. has a free-trade agreement with, or any other country with which trade is not prohibited by U.S. law. But the current glut of LNG on the global market has cast doubt on the project; it still is in its preliminary design phase, and permit approval isn't expected for at least three years. For more information, see Industrial Info's project report.
The Prudhoe Bay project, also part of the massive Alaska LNG Project, would consist of four amine units with compression, dehydration and chilling. It would involve the installation of five low-emission, high-thermal-efficiency power units, each with a capacity of 40 megawatts (MW). For more information, see Industrial Info's project report.
According to Alaska Dispatch News, the Alaska LNG Project would not begin production until 2025 at the earliest, if it is indeed completed. Chevron is serving as project leader, with other participants including Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), BP plc (NYSE:BP) (London, England), the State of Alaska, Alaska Gasline Development Corporation and TransCanada Corporation (NYSE:TRP) (Calgary, Alberta).
In Canada, the largest project to include CH2M Hill is Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) $3.5 billion Trans Mountain twin pipeline expansion in Alberta and British Columbia. The project, which is part of the $5.5 billion Trans Mountain Expansion Project, involves building about 690 kilometers of 36-inch pipeline in two spreads, from a point near Hargreaves, British Columbia, to Kinder Morgan's Darfield Crude Oil Pump Station; and from Kinder Morgan's Black Pines Pump Station, now under construction, to its Westridge Crude Oil Terminal near Burnaby, British Columbia. The project is expected to boost system capacity to 890,000 barrels per day (BBL/d) from 300,000 BBL/d. For more information, see Industrial Info's project report.
CH2M is serving as environmental consultant on the Trans Mountain twin pipeline expansion. The project has stirred up fierce opposition among local residents, including First Nations and environmental activists. Earlier this month, the Living Oceans Society and the Raincoast Conservation Foundation asked the courts to nullify the National Energy Board's (NEB) recommendation that the expansion proceeds, arguing that it would have an adverse effect on killer whales and their habitat. The groups have a somewhat surprising ally: the City of Vancouver, which filed its own application for judicial review, calling the expansion invalid and unlawful. According to Canada's Global News, Vancouver's mayor says the NEB failed to properly consult local communities on the pipeline and could put jobs at risk. Calgary's mayor fired back, according to The Globe and Mail, accusing his counterpart of fearmongering and "using numbers out of context."
The largest project involving CH2M Hill that is under construction is Tesla Motors Incorporated's (NASDAQ:TSLA) (Palo Alto, California) $5 billion lithium-ion battery-manufacturing plant in McCarran, Nevada. The facility will enable partner Panasonic (Kadoma, Japan) to produce 35 gigawatt-hours of battery cells, modules and packs each year to supply to Tesla's vehicle assembly plant in Fremont, California. The results are expected to increase Tesla's vehicle volume to about 500,000 vehicle battery packs per year for the Model S and Model X SUVs by 2020. CH2m Hill is performing architecture and engineering services. For more information, see Industrial Info's project report.
The six other highest-valued projects to involve CH2M Hill are:
The two highest-valued projects involving CH2M Hill are part of Chevron Corporation's (NYSE:CVX) (San Ramon, California) $45 billion-to-$65 billion Alaska LNG Project, which would produce liquefied natural gas (LNG) and ship it to overseas markets: the $15 billion LNG liquefaction production and export terminal on the Kenai Peninsula and the $7.5 billion LNG gas treatment plant in Prudhoe Bay. On both projects, CH2M Hill was awarded contracts for pre-front-end engineering and design (pre-FEED) for controls, marine studies, logistics & construction planning, cost estimating and project scheduling.
The Kenai project involves the construction of trains to liquefy 2.2 billion to 2.5 billion cubic feet per day of natural gas, for a total of about 18 million tons per year of LNG. Earlier this year, the Kenai facility, which was the first LNG export facility in the U.S., received approval from the U.S. Department of Energy (DoE) to export about 40 billion cubic feet of natural gas over the next two years. According to Reuters, the approval will allow exports to any country the U.S. has a free-trade agreement with, or any other country with which trade is not prohibited by U.S. law. But the current glut of LNG on the global market has cast doubt on the project; it still is in its preliminary design phase, and permit approval isn't expected for at least three years. For more information, see Industrial Info's project report.
The Prudhoe Bay project, also part of the massive Alaska LNG Project, would consist of four amine units with compression, dehydration and chilling. It would involve the installation of five low-emission, high-thermal-efficiency power units, each with a capacity of 40 megawatts (MW). For more information, see Industrial Info's project report.
According to Alaska Dispatch News, the Alaska LNG Project would not begin production until 2025 at the earliest, if it is indeed completed. Chevron is serving as project leader, with other participants including Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas), BP plc (NYSE:BP) (London, England), the State of Alaska, Alaska Gasline Development Corporation and TransCanada Corporation (NYSE:TRP) (Calgary, Alberta).
In Canada, the largest project to include CH2M Hill is Kinder Morgan Incorporated's (NYSE:KMI) (Houston, Texas) $3.5 billion Trans Mountain twin pipeline expansion in Alberta and British Columbia. The project, which is part of the $5.5 billion Trans Mountain Expansion Project, involves building about 690 kilometers of 36-inch pipeline in two spreads, from a point near Hargreaves, British Columbia, to Kinder Morgan's Darfield Crude Oil Pump Station; and from Kinder Morgan's Black Pines Pump Station, now under construction, to its Westridge Crude Oil Terminal near Burnaby, British Columbia. The project is expected to boost system capacity to 890,000 barrels per day (BBL/d) from 300,000 BBL/d. For more information, see Industrial Info's project report.
CH2M is serving as environmental consultant on the Trans Mountain twin pipeline expansion. The project has stirred up fierce opposition among local residents, including First Nations and environmental activists. Earlier this month, the Living Oceans Society and the Raincoast Conservation Foundation asked the courts to nullify the National Energy Board's (NEB) recommendation that the expansion proceeds, arguing that it would have an adverse effect on killer whales and their habitat. The groups have a somewhat surprising ally: the City of Vancouver, which filed its own application for judicial review, calling the expansion invalid and unlawful. According to Canada's Global News, Vancouver's mayor says the NEB failed to properly consult local communities on the pipeline and could put jobs at risk. Calgary's mayor fired back, according to The Globe and Mail, accusing his counterpart of fearmongering and "using numbers out of context."
The largest project involving CH2M Hill that is under construction is Tesla Motors Incorporated's (NASDAQ:TSLA) (Palo Alto, California) $5 billion lithium-ion battery-manufacturing plant in McCarran, Nevada. The facility will enable partner Panasonic (Kadoma, Japan) to produce 35 gigawatt-hours of battery cells, modules and packs each year to supply to Tesla's vehicle assembly plant in Fremont, California. The results are expected to increase Tesla's vehicle volume to about 500,000 vehicle battery packs per year for the Model S and Model X SUVs by 2020. CH2m Hill is performing architecture and engineering services. For more information, see Industrial Info's project report.
The six other highest-valued projects to involve CH2M Hill are:
- $4.03 billion: Alaska Gasline Development Corporation's Prudhoe Bay-to-Cook Inlet natural gas pipeline in Alaska
For more information, see Industrial Info's project report. - $3.72 billion: Honolulu Rail Transit's high-capacity transit corridor (projects I and II) in Honolulu, Hawaii
For more information, see Industrial Info's project report. - $2.72 billion: City of Honolulu Transportation Department's commuter rail system (segment I) in Kapolei, Hawaii
For more information, see Industrial Info's project report. - $2.5 billion: Summit Power Group Incorporated's Texas Clean Energy integrated gasification combined-cycle (IGCC) power plant in Penwell, Texas
For more information, see Industrial Info's project report. - $2.5 billion: Kinder Morgan Incorporated's Elba Island LNG liquefaction plant in Savannah, Georgia
For more information, see Industrial Info's project report. - $1.9 billion: Tres Amigas LLC's substation (Phase I) in Clovis, New Mexico
For more information, see Industrial Info's project report.
