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Researched by Industrial Info Resources (Sugar Land, Texas)--KBR Incorporated (NYSE:KBR) (Houston, Texas) has been riding the wave of liquefied natural gas (LNG) and offshore drilling projects that have crested in the past few years. Across all industries, the engineering, procurement and construction (EPC) provider is involved in 155 projects that carry a total investment value (TIV) of $144.52 billion. More than 75% of its active projects are in the Oil & Gas Production Industry--including all of its 10 highest-valued projects, which account for more than half of the TIV.
Even as a global glut in LNG has eased demand from the Oil & Gas Production Industry, KBR's overall backlog has only strengthened. KBR's revenues dipped at the end of the first quarter, largely due to the deconsolidation of its industrial services business and lower-than-expected revenues from a LNG project, but its backlog of unfilled orders jumped to more than $12 billion, from about $10.3 billion at the end of first-quarter 2015.
The four highest-valued projects are LNG production plants and/or export terminals. The largest is Statoil Tanzania's (Dar es Saalam, Tanzania) $14 billion LNG liquefaction plant in Lindi, Tanzania, for which KBR is serving as a consultant. The facility will process gas from BG Group's Block 1 and Statoil's Block 2 in the nearby offshore fields, for export to Asian markets. At least two trains are to be constructed. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) completed its $50 billion acquisition of BG Group earlier this year. For more information, see Industrial Info's project report.
Earlier this year, Tanzania finalized the site's land acquisition, following years of negotiations with landowners and local residents. The nation is eager to exploit its natural gas reserves, which are estimated at more than 55 trillion cubic feet (Tcf); neighboring Uganda and Mozambique also have become industry hotspots amid recent oil and gas discoveries. The government of Tanzania hopes to begin exporting LNG by the early 2020s.
Indonesia is host to the second-largest project, BP plc's (NYSE:BP) (London, England) $12 billion Tangguh LNG Liquefaction Plant in Bintuni. The project will add a third LNG train with a capacity of 3.8 million tonnes of LNG per annum, bringing total production capacity to 11.4 million tonnes per annum. KBR's Indonesian subsidiary is among a slew of companies performing design-engineering services. For more information, see Industrial Info's project report.
Last month, BP announced it likely would reduce the budget for the project from $12 billion to between $8 billion and $10 billion, citing continued weakness in oil prices. In April, BP signed a deal to supply 20 cargoes of LNG per year from Tangguh to the Indonesian power utility Perusahaan Listrik Negara (PLN), from 2017 to 2019, according to Reuters. From 2020 to 2033, BP will increase the number of cargoes per year to 44.
The highest-valued projects featuring KBR in North America is the closely watched $10 billion Pacific Northwest LNG Liquefaction plant on Lelu Island, British Columbia. KBR is among the companies performing engineering services for the facility, which will feature two trains with capacities of 6 million tons per year; two 180,000-cubic-meter storage tanks; and boat-loading facilities to export the product to Asian markets. For more information, see Industrial Info's project report.
The Pacific Northwest LNG project has set off a firestorm of debate between Canadians supporting the development and environmental activists. Canada's Federal Environment Minister Catherine McKenna halted the project's review in late March, saying the Canadian Environmental Assessment Agency (CEAA) needed more time to assess the potential environmental effects. And earlier this week, 90 scientists and climate experts sent an open letter to Prime Minister Justin Trudeau urging the cancellation of the project, estimating a dramatic increase in greenhouse gas production if the project is approved.
In response, British Columbia's Minister of Environment Mary Polak said that the total carbon pollution from the Pacific Northwest LNG project would be much lower than CEAA's own estimates, because of the province's own forthcoming climate plan, according to The Georgia Straight, a Vancouver-based newspaper. Earlier this year, the council for the District of Port Edward, the community in which the project would be located, submitted a letter urging passage of the project. For more information on this and other major Oil & Gas Industry projects in Canada, see May 13, 2016 article - Outside Alberta, Canada's Oil & Gas Industry Still Faces Numerous Challenges.
KBR also is involved in two major projects on the U.S. Gulf Coast: G2 LNG LLC's (Baton Rouge, Louisiana) $10 billion G2 LNG Liquefied Natural Gas Terminal in Hackberry, Louisiana, and BP's $10 billion Mad Dog 2 offshore platform in the Gulf of Mexico. The G2 LNG project, on which KBR is performing engineering services, comprises two LNG trains, each with a capacity of 7 million metric tonnes per year. It is designated to export its product to countries that are either part of or not part of the Free Trade Agreement for a 30-year period. For more information on the project, still in its permitting phase, see Industrial Info's project report.
KBR was recently awarded a front-end engineering and design contract for the Mad Dog 2 platform, which is about 190 miles off of the coast of New Orleans. The project will involve drilling 29 wells and installing a semi-submersible floating production platform to produce 140,000 barrels per day (BBL/d) of crude. For more information, see Industrial Info's project report.
The Business Times recently reported that BP is looking to retender the anchor production structure for the project, and it will call for the contest to be opened up to yards in China and Singapore. The first bids came in at above the project's set budget.
The five other highest-value projects involving KBR are:
Even as a global glut in LNG has eased demand from the Oil & Gas Production Industry, KBR's overall backlog has only strengthened. KBR's revenues dipped at the end of the first quarter, largely due to the deconsolidation of its industrial services business and lower-than-expected revenues from a LNG project, but its backlog of unfilled orders jumped to more than $12 billion, from about $10.3 billion at the end of first-quarter 2015.
The four highest-valued projects are LNG production plants and/or export terminals. The largest is Statoil Tanzania's (Dar es Saalam, Tanzania) $14 billion LNG liquefaction plant in Lindi, Tanzania, for which KBR is serving as a consultant. The facility will process gas from BG Group's Block 1 and Statoil's Block 2 in the nearby offshore fields, for export to Asian markets. At least two trains are to be constructed. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) completed its $50 billion acquisition of BG Group earlier this year. For more information, see Industrial Info's project report.
Earlier this year, Tanzania finalized the site's land acquisition, following years of negotiations with landowners and local residents. The nation is eager to exploit its natural gas reserves, which are estimated at more than 55 trillion cubic feet (Tcf); neighboring Uganda and Mozambique also have become industry hotspots amid recent oil and gas discoveries. The government of Tanzania hopes to begin exporting LNG by the early 2020s.
Indonesia is host to the second-largest project, BP plc's (NYSE:BP) (London, England) $12 billion Tangguh LNG Liquefaction Plant in Bintuni. The project will add a third LNG train with a capacity of 3.8 million tonnes of LNG per annum, bringing total production capacity to 11.4 million tonnes per annum. KBR's Indonesian subsidiary is among a slew of companies performing design-engineering services. For more information, see Industrial Info's project report.
Last month, BP announced it likely would reduce the budget for the project from $12 billion to between $8 billion and $10 billion, citing continued weakness in oil prices. In April, BP signed a deal to supply 20 cargoes of LNG per year from Tangguh to the Indonesian power utility Perusahaan Listrik Negara (PLN), from 2017 to 2019, according to Reuters. From 2020 to 2033, BP will increase the number of cargoes per year to 44.
The highest-valued projects featuring KBR in North America is the closely watched $10 billion Pacific Northwest LNG Liquefaction plant on Lelu Island, British Columbia. KBR is among the companies performing engineering services for the facility, which will feature two trains with capacities of 6 million tons per year; two 180,000-cubic-meter storage tanks; and boat-loading facilities to export the product to Asian markets. For more information, see Industrial Info's project report.
The Pacific Northwest LNG project has set off a firestorm of debate between Canadians supporting the development and environmental activists. Canada's Federal Environment Minister Catherine McKenna halted the project's review in late March, saying the Canadian Environmental Assessment Agency (CEAA) needed more time to assess the potential environmental effects. And earlier this week, 90 scientists and climate experts sent an open letter to Prime Minister Justin Trudeau urging the cancellation of the project, estimating a dramatic increase in greenhouse gas production if the project is approved.
In response, British Columbia's Minister of Environment Mary Polak said that the total carbon pollution from the Pacific Northwest LNG project would be much lower than CEAA's own estimates, because of the province's own forthcoming climate plan, according to The Georgia Straight, a Vancouver-based newspaper. Earlier this year, the council for the District of Port Edward, the community in which the project would be located, submitted a letter urging passage of the project. For more information on this and other major Oil & Gas Industry projects in Canada, see May 13, 2016 article - Outside Alberta, Canada's Oil & Gas Industry Still Faces Numerous Challenges.
KBR also is involved in two major projects on the U.S. Gulf Coast: G2 LNG LLC's (Baton Rouge, Louisiana) $10 billion G2 LNG Liquefied Natural Gas Terminal in Hackberry, Louisiana, and BP's $10 billion Mad Dog 2 offshore platform in the Gulf of Mexico. The G2 LNG project, on which KBR is performing engineering services, comprises two LNG trains, each with a capacity of 7 million metric tonnes per year. It is designated to export its product to countries that are either part of or not part of the Free Trade Agreement for a 30-year period. For more information on the project, still in its permitting phase, see Industrial Info's project report.
KBR was recently awarded a front-end engineering and design contract for the Mad Dog 2 platform, which is about 190 miles off of the coast of New Orleans. The project will involve drilling 29 wells and installing a semi-submersible floating production platform to produce 140,000 barrels per day (BBL/d) of crude. For more information, see Industrial Info's project report.
The Business Times recently reported that BP is looking to retender the anchor production structure for the project, and it will call for the contest to be opened up to yards in China and Singapore. The first bids came in at above the project's set budget.
The five other highest-value projects involving KBR are:
- $5.1 billion: Chevron Corporation's Bigfoot Offshore Platform in the Gulf of Mexico
For more information, see Industrial Info's project report, and June 8, 2016, article - Kiewit's 10 Top-Valued Projects Cover Offshore Drilling, LNG and Light Rail. - $5 billion: Delek Group Limited's Tamar Offshore Floating Liquefaction Plant in the Mediterranean Sea, off the coast of Israel
For more information, see Industrial Info's project report. - $4.5 billion: Eni SpA's offshore LNG terminal in the Mozambique Channel, Mozambique
For more information, see Industrial Info's project report. - $4 billion: Kinder Morgan Incorporated's Gulf LNG Liquefaction production plant and terminal (Phase I) in Pascagoula, Mississippi
For more information, see Industrial Info's project report. - $4 billion: Kinder Morgan Incorporated's Gulf LNG Liquefaction production plant and terminal (Phase II) in Pascagoula, Mississippi
For more information, see Industrial Info's project report.
