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Released October 30, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Technip Energies N.V. (Paris, France) boasts a growing presence in the North American market for liquefied natural gas (LNG) and offshore drilling, with the latter business driving its third-quarter revenues to more than $2 billion, an 18.7% gain from third-quarter 2022. The engineering and technology provider expects its customer base to expand further into the offshore market due to high-quality reserves. Industrial Info is tracking nearly $20 billion worth of active projects across the U.S. and Canada featuring Technip's services, including more than $14 billion worth in the Oil & Gas Production Industry.
In a quarterly earnings-related conference call, Technip executives said the company's third-quarter backlog jumped nearly 50% from the same period last year to $13.2 billion, with its Subsea division's backlog gaining 59% to $12 billion. Third-quarter Subsea revenues jumped 21% to $1.71 billion, while sales from the Surface Technologies division increased 9.6% to $348.6 million. Technip executives said in the conference call that they expect full-year Subsea revenues to total $5.9 billion to $6.3 billion, and Surface Technologies revenues to total $1.3 billion to $1.45 billion.
Click on the image at right for a graph detailing the top parent companies for U.S., Canadian projects with Technip as a service provider, by total investment value.
Two of the largest offshore projects under construction in North America feature Technip's services: Cenovus Energy Incorporated's (NYSE:CVE) (Calgary, Alberta) West White Rose offshore oil drilling project in the Atlantic, offshore Newfoundland and Labrador, which has been under construction since 2018, and Beacon Offshore Energy LLC's (Houston) Shenandoah Floating Production Platform in the Gulf of Mexico, which began construction about one year ago.
While the Shenandoah project, which is estimated to have 100 million to 400 million barrels of recoverable resources, is expected to wrap up toward the end of 2024, the White Rose project, which is expected to produce 52,500 barrels per day (BBL/d) with a daily peak of 75,000 BBL/d, is not expected to be completed until mid-2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the White Rose and Shenandoah projects.
"The upward revisions to our Subsea order outlook are fueled by high-quality inbound driven by iEPCI [integrated engineering, procurement, construction and installation], Subsea services, and other direct awards, and which are now expected to represent more than 70% of segment orders in the current year," said Doug Pferdehirt, the chief executive officer of Technip, in the conference call. "And more importantly, these results are further strengthening the foundation for higher and more sustainable performance in the years ahead."
One of the largest onshore projects featuring Technip's services is Commonwealth LNG LLC's (Houston, Texas) LNG production plant in Hackberry, Louisiana, on the Gulf Coast. Developers of the six-train complex are staggering its construction in two-train phases, with each phase accounting for between 3.1 million and 3.2 million tonnes per annum of capacity, with the product to be exported to countries with and without federal trade agreements. Phase I is expected to begin construction in the first half of 2024, with Phase II set to kick off toward the end of the same year. The last two trains in Phase III would begin construction toward the end of 2025, as currently envisioned.
Each phase would be accompanied by the construction of a pretreatment unit to process 250 million standard cubic feet per day of natural gas. Technip is providing engineering, procurement and construction (EPC) services for all phases, while Baker Hughes Company (NASDAQ:BKR) (Houston) recently agreed to provide compressor technology, maintenance and other technological services. Subscribers can read detailed reports on Phase I and its pretreatment unit, Phase II and its pretreatment unit, and Phase III and its pretreatment unit.
The U.S. Federal Energy Regulatory Commission (FERC) unanimously approved the project in November 2022, and it made strides this summer, when Kimmeridge Energy Management Company LLC (New York, New York) agreed, in principle, to a 20-year, 2 million-tonne-per-annum LNG offtake commitment from the facility, along with an associated gas supply. The investment from Kimmeridge, an alternative asset management firm focused on the energy sector, completes the development funding required for Commonwealth LNG to reach a final investment decision, which is expected in the first quarter of 2024.
Last month, Commonwealth LNG entered into a two "heads of agreement" (typically non-binding arrangements) with EQT Corporation (NYSE:EQT) (Pittsburgh, Pennsylvania), the largest producer of natural gas in the U.S., and MET Group (Zug, Switzerland), an integrated European energy company, to supply 1 million tonnes per annum of LNG for 15 and 20 years, respectively. Final terms remain subject to negotiation, but are anticipated to commence at the start of commercial operations, expected in 2027.
Also on the Gulf Coast, Technip is set to provide EPC services for a pretreatment unit at Glenfarne Group LLC's (New York, New York) Texas LNG project in Brownsville, Texas. The complex centers around a liquefaction plant designed to convert 275 million standard cubic feet per day of natural gas into 2 million metric tonnes per annum of LNG; a proposed second train would double capacity. Glenfarne announced in April it plans to make a final investment decision on the Brownsville complex before the end of the year; if approved, it expects LNG production to begin in 2027. Subscribers can read detailed reports on the pretreatment unit, and Phase I and Phase II of the liquefaction plant.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed U.S.-based projects from Technip.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
In a quarterly earnings-related conference call, Technip executives said the company's third-quarter backlog jumped nearly 50% from the same period last year to $13.2 billion, with its Subsea division's backlog gaining 59% to $12 billion. Third-quarter Subsea revenues jumped 21% to $1.71 billion, while sales from the Surface Technologies division increased 9.6% to $348.6 million. Technip executives said in the conference call that they expect full-year Subsea revenues to total $5.9 billion to $6.3 billion, and Surface Technologies revenues to total $1.3 billion to $1.45 billion.
Click on the image at right for a graph detailing the top parent companies for U.S., Canadian projects with Technip as a service provider, by total investment value.Two of the largest offshore projects under construction in North America feature Technip's services: Cenovus Energy Incorporated's (NYSE:CVE) (Calgary, Alberta) West White Rose offshore oil drilling project in the Atlantic, offshore Newfoundland and Labrador, which has been under construction since 2018, and Beacon Offshore Energy LLC's (Houston) Shenandoah Floating Production Platform in the Gulf of Mexico, which began construction about one year ago.
While the Shenandoah project, which is estimated to have 100 million to 400 million barrels of recoverable resources, is expected to wrap up toward the end of 2024, the White Rose project, which is expected to produce 52,500 barrels per day (BBL/d) with a daily peak of 75,000 BBL/d, is not expected to be completed until mid-2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the White Rose and Shenandoah projects.
"The upward revisions to our Subsea order outlook are fueled by high-quality inbound driven by iEPCI [integrated engineering, procurement, construction and installation], Subsea services, and other direct awards, and which are now expected to represent more than 70% of segment orders in the current year," said Doug Pferdehirt, the chief executive officer of Technip, in the conference call. "And more importantly, these results are further strengthening the foundation for higher and more sustainable performance in the years ahead."
One of the largest onshore projects featuring Technip's services is Commonwealth LNG LLC's (Houston, Texas) LNG production plant in Hackberry, Louisiana, on the Gulf Coast. Developers of the six-train complex are staggering its construction in two-train phases, with each phase accounting for between 3.1 million and 3.2 million tonnes per annum of capacity, with the product to be exported to countries with and without federal trade agreements. Phase I is expected to begin construction in the first half of 2024, with Phase II set to kick off toward the end of the same year. The last two trains in Phase III would begin construction toward the end of 2025, as currently envisioned.
Each phase would be accompanied by the construction of a pretreatment unit to process 250 million standard cubic feet per day of natural gas. Technip is providing engineering, procurement and construction (EPC) services for all phases, while Baker Hughes Company (NASDAQ:BKR) (Houston) recently agreed to provide compressor technology, maintenance and other technological services. Subscribers can read detailed reports on Phase I and its pretreatment unit, Phase II and its pretreatment unit, and Phase III and its pretreatment unit.
The U.S. Federal Energy Regulatory Commission (FERC) unanimously approved the project in November 2022, and it made strides this summer, when Kimmeridge Energy Management Company LLC (New York, New York) agreed, in principle, to a 20-year, 2 million-tonne-per-annum LNG offtake commitment from the facility, along with an associated gas supply. The investment from Kimmeridge, an alternative asset management firm focused on the energy sector, completes the development funding required for Commonwealth LNG to reach a final investment decision, which is expected in the first quarter of 2024.
Last month, Commonwealth LNG entered into a two "heads of agreement" (typically non-binding arrangements) with EQT Corporation (NYSE:EQT) (Pittsburgh, Pennsylvania), the largest producer of natural gas in the U.S., and MET Group (Zug, Switzerland), an integrated European energy company, to supply 1 million tonnes per annum of LNG for 15 and 20 years, respectively. Final terms remain subject to negotiation, but are anticipated to commence at the start of commercial operations, expected in 2027.
Also on the Gulf Coast, Technip is set to provide EPC services for a pretreatment unit at Glenfarne Group LLC's (New York, New York) Texas LNG project in Brownsville, Texas. The complex centers around a liquefaction plant designed to convert 275 million standard cubic feet per day of natural gas into 2 million metric tonnes per annum of LNG; a proposed second train would double capacity. Glenfarne announced in April it plans to make a final investment decision on the Brownsville complex before the end of the year; if approved, it expects LNG production to begin in 2027. Subscribers can read detailed reports on the pretreatment unit, and Phase I and Phase II of the liquefaction plant.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed U.S.-based projects from Technip.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
