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Researched by Industrial Info Resources (Sugar Land, Texas)--Kiewit Corporation (Omaha, Nebraska) has provided engineering, procurement and construction (EPC) services to more than 600 energy-related projects over the past 10 years. According to Industrial Info's project database, global projects that involve Kiewit in some capacity currently have a total investment value (TIV) of $52.9 billion. More than two-thirds of the TIV is attributed to the 10 highest-valued projects, and almost all of the TIV is in just three industries: Oil & Gas Production, Industrial Manufacturing and Power.
Within each of these three industries, there is little variety. The $25.7 billion in Oil & Gas Production projects are made up of liquefied natural gas (LNG) and offshore oil projects. All of the $14 billion in Industrial Manufacturing Industry projects are for commuter rail projects and $10 billion of the roughly $12 billion in Power Industry projects are at natural gas-fired plants.
The largest project involving Kiewit is Veresen Incorporated's (TSX:VSN) (Calgary, Alberta) closely watched $6 Billion Jordan Cove LNG Liquefaction Plant in Coos Bay, Oregon. The facility, for which Kiewit is performing EPC services with Black & Veatch (Overland Park, Kansas), is expected to have a capacity of 6 million tons per year of liquefied natural gas (LNG). The plant is designed to include four trains, each with a capacity of 225 million standard cubic feet per day; two full-containment LNG storage tanks, each with a capacity of 160,000 cubic meters; and a pretreatment facility, among other components. For more information, see Industrial Info's project report.
During the first quarter, Veresen finalized key commercial terms with customers for at least 50% of the Jordan Cove project's initial design capacity. If the project is completed, Veresen expects at least 3 million tons of natural gas would be sold per year under the agreement. Although the U.S. Federal Energy Regulatory Commission (FERC) denied authorization for the construction of the Jordan Cove LNG terminal in March, Veresen was able to obtain an order from FERC for a rehearing. Nonetheless, the facility and its accompanying pipeline have faced consistent opposition from environmental activists.
Kiewit's offshore subsidiary is among the contractors on Chevron Corporation's (NYSE:TSX) (San Ramon, California) $5.1 billion "Bigfoot" offshore platform in the Gulf of Mexico. The project, which is situated about 225 miles south of New Orleans, involves building and installing an extended-tension leg platform with a production capacity of 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas. KBR Incorporated (NYSE:KBR) (Houston, Texas) is performing engineering services, and other contractors include WGPSN Commissioning Services (Houston), Gulf Marine Fabricators (Ingleside, Texas) and Heerema Marine Contractors (Houston). For more information, see Industrial Info's project report.
The Bigfoot project, originally slated to begin production in fourth-quarter 2015, has faced numerous delays, including an incident in July 2015 in which tensions designed to anchor the platform to the sea floor failed, according to Offshore Post. The installation was delayed and the structure was towed to shore. But in a quarterly earnings call in early May, John S. Watson, the chairman and chief executive officer of Chevron, said he expected the platform to come online in 2018, calling it a "long-lived asset with benefits for years to come."
In the Industrial Manufacturing Industry, Kiewit is performing design-build services for one of the nation's largest light rail projects: Honolulu Rail Transit's $3.72 billion High-Capacity Transit Corridor second-phase line in Honolulu, Hawaii. The four-mile segment, which is part of a broader, 20-mile system, runs from from Pearl Highlands to Aloha Stadium, with two stations at Pearl Ridge and the stadium. For more information, see Industrial Info's project report.
The Honolulu rail project continued to add money to Kiewit's coffers earlier this year, when the Honolulu Authority for Rapid Transportation agreed pay Kiewit an extra $12 million to address escalating costs that were attributed to extensive construction delays, according to The Business Journals. The project is more than a year behind schedule and well over budget.
The largest Power Industry project to involve Kiewit is Clean Energy Line Partners LLC's (Houston, Texas) $1.7 billion Rock Island Clean Energy Transmission Line in Iowa and Illinois. The 500-mile project, which is among the beneficiaries of Congress' decision in December to extend the Production Tax Credit, would move up to 3,500 megawatts (MW) of wind-generated capacity from the Siouxland Converter Station in O'Brien County, Iowa, to the Collins Substation in Grundy County, Illinois. For more information, see Industrial Info's project report.
The six other highest-valued projects to involve Kiewit are:
Within each of these three industries, there is little variety. The $25.7 billion in Oil & Gas Production projects are made up of liquefied natural gas (LNG) and offshore oil projects. All of the $14 billion in Industrial Manufacturing Industry projects are for commuter rail projects and $10 billion of the roughly $12 billion in Power Industry projects are at natural gas-fired plants.
The largest project involving Kiewit is Veresen Incorporated's (TSX:VSN) (Calgary, Alberta) closely watched $6 Billion Jordan Cove LNG Liquefaction Plant in Coos Bay, Oregon. The facility, for which Kiewit is performing EPC services with Black & Veatch (Overland Park, Kansas), is expected to have a capacity of 6 million tons per year of liquefied natural gas (LNG). The plant is designed to include four trains, each with a capacity of 225 million standard cubic feet per day; two full-containment LNG storage tanks, each with a capacity of 160,000 cubic meters; and a pretreatment facility, among other components. For more information, see Industrial Info's project report.
During the first quarter, Veresen finalized key commercial terms with customers for at least 50% of the Jordan Cove project's initial design capacity. If the project is completed, Veresen expects at least 3 million tons of natural gas would be sold per year under the agreement. Although the U.S. Federal Energy Regulatory Commission (FERC) denied authorization for the construction of the Jordan Cove LNG terminal in March, Veresen was able to obtain an order from FERC for a rehearing. Nonetheless, the facility and its accompanying pipeline have faced consistent opposition from environmental activists.
Kiewit's offshore subsidiary is among the contractors on Chevron Corporation's (NYSE:TSX) (San Ramon, California) $5.1 billion "Bigfoot" offshore platform in the Gulf of Mexico. The project, which is situated about 225 miles south of New Orleans, involves building and installing an extended-tension leg platform with a production capacity of 75,000 barrels per day (BBL/d) of oil and 25 million standard cubic feet per day of natural gas. KBR Incorporated (NYSE:KBR) (Houston, Texas) is performing engineering services, and other contractors include WGPSN Commissioning Services (Houston), Gulf Marine Fabricators (Ingleside, Texas) and Heerema Marine Contractors (Houston). For more information, see Industrial Info's project report.
The Bigfoot project, originally slated to begin production in fourth-quarter 2015, has faced numerous delays, including an incident in July 2015 in which tensions designed to anchor the platform to the sea floor failed, according to Offshore Post. The installation was delayed and the structure was towed to shore. But in a quarterly earnings call in early May, John S. Watson, the chairman and chief executive officer of Chevron, said he expected the platform to come online in 2018, calling it a "long-lived asset with benefits for years to come."
In the Industrial Manufacturing Industry, Kiewit is performing design-build services for one of the nation's largest light rail projects: Honolulu Rail Transit's $3.72 billion High-Capacity Transit Corridor second-phase line in Honolulu, Hawaii. The four-mile segment, which is part of a broader, 20-mile system, runs from from Pearl Highlands to Aloha Stadium, with two stations at Pearl Ridge and the stadium. For more information, see Industrial Info's project report.
The Honolulu rail project continued to add money to Kiewit's coffers earlier this year, when the Honolulu Authority for Rapid Transportation agreed pay Kiewit an extra $12 million to address escalating costs that were attributed to extensive construction delays, according to The Business Journals. The project is more than a year behind schedule and well over budget.
The largest Power Industry project to involve Kiewit is Clean Energy Line Partners LLC's (Houston, Texas) $1.7 billion Rock Island Clean Energy Transmission Line in Iowa and Illinois. The 500-mile project, which is among the beneficiaries of Congress' decision in December to extend the Production Tax Credit, would move up to 3,500 megawatts (MW) of wind-generated capacity from the Siouxland Converter Station in O'Brien County, Iowa, to the Collins Substation in Grundy County, Illinois. For more information, see Industrial Info's project report.
The six other highest-valued projects to involve Kiewit are:
- $4 billion: Dominion Resources' Cove Point LNG Liquefaction Plant in Lusby, Maryland
For more information, see Industrial Info's project report. - $4 billion: Hess Corporation's Stampede Oil Production Platform in the Gulf of Mexico
For more information, see Industrial Info's project report. - $3.7 billion: Sound Transit's East Link Light-Rail Transit System Extension in Seattle, Washington
For more information, see Industrial Info's project report. - $3.5 billion: Royal Dutch Shell plc's Appomattox Oil & Gas Production Platform in the Gulf of Mexico
For more information, see Industrial Info's project report. - $2.72 billion: City of Honolulu Transportation Department's Commuter Rail Line, Segment I, in Honolulu, Hawaii
For more information, see Industrial Info's project report. - $2 billion: ExxonMobil Corporation's Hebron Offshore Crude Oil Production Platform (gravity-based structure) in Canada's Labrador Sea
For more information, see Industrial Info's project report.
