KBR Capitalizes on Increased Spending in North American Chemical Processing Industry

Researched by Industrial Info Resources (Sugar Land, Texas)--KBR Incorporated (NYSE:KBR) (Houston, Texas), one of the leading engineering and construction firms in the world, is positioned to benefit greatly from the boom in cheap natural gas in the U.S. and Canada. Industrial Info is tracking more than $4 billion in projects awarded to KBR for technology, engineering and/or construction in the Chemical Processing Industry (CPI).

KBR has 30 projects that are being tracked in Industrial Info's project database; 10 of these projects are in planning phases and represent more than $3 billion in total expenditures. Six projects awarded to KBR that total more than $668 million are in engineering phases. There also are $450 million in projects that are in construction phases and $52 million that are in planned maintenance-related projects.

About 73% of KBR-related chemical projects that Industrial Info is tracking are in the fertilizer industry, representing more than $3.1 billion in spending; the largest portion is in ammonia and urea production. Ethylene production represents the next-largest value industry, with $735 million in spending representing 17% of the projects currently awarded in the CPI.

Ohio Valley Resources (Rockport, Indiana) awarded KBR to act as the engineering, procurement and construction (EPC) contractor on its $ 1 billion fertilizer plant in Rockport, Indiana. The plant, once completed, will produce ammonia, urea ammonium nitrate (UAN) and diesel exhaust fluid (DEF). The project is currently planned for a 2014 construction kick-off and 2016 completion.

KBR is currently shortlisted to perform technology, engineering and/or construction work for five very large chemical projects that represent $4.5 billion in potential spending. The biggest slice of this spending will come from the ethylene industry.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.