WorleyParsons Adds Jacobs' Energy, Chemicals Businesses to $140 Billion in Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Global engineering and consultation leader WorleyParsons (North Sydney, Australia) has agreed to acquire Jacobs Engineering Group Incorporated's (NYSE:JEC) (Dallas, Texas) Energy, Chemicals and Resources business in a deal that would nearly double WorleyParsons' size and nearly triple the dollar value of its backlog. Industrial Info is tracking nearly $140 billion in active projects involving WorleyParsons, including about $66 billion worth in the U.S. and Canada.

Click on the image at right to see a graph detailing current WorleyParsons projects in the U.S., by industrial sector.

The addition of Jacobs' $7 billion order book for related projects will increase WorleyParsons' backlog from roughly $4.5 billion to about $11.5 billion. WorleyParsons likely will see its focus shift toward downstream markets, such as the Chemical Processing Industry, where Jacobs is part of more than $7 billion in active projects. These include:

• MEGlobal Americas Incorporated's (Dubai, United Arab Emirates) BookraMEG plant in Freeport, Texas, which would produce about 1.5 billion pounds per year of monoethylene glycol (MEG); see project report
• INEOS Group AG's (London, England) proposed unit addition at its Green Lake Acrylonitrile Plant in Port Lavaca, Texas, which is designed to produce about 120,000 tons per year of methionine; see project report
• Royal Dutch Shell Plc's (NYSE:RDS.A) (The Hague, Netherlands) unit addition to its chemicals facility in Geismar, Louisiana, which would produce about 930 million pounds per year of alpha-olefins; see project report
• Encina's (The Woodlands, Texas) proposed BTX plant in Gillette, Wyoming, which would produce about 50,000 to 100,000 tons per year of benzene, toluene, and xylene (BTX) from low-value coal feedstock; see project report

WorleyParsons still has plenty of upstream projects in the works, including ConocoPhillips' (NYSE:COP) (Houston, Texas) Greater Mooses Tooth 2 drilling site in northern Alaska, which last week was greenlighted by the U.S. Bureau of Land Management. For more information on the project, which the company says could begin producing as much as 35,000 to 40,000 barrels per day by 2021, see Industrial Info's project report and October 18, 2018, article - ConocoPhillips Notches Up Major Progress on Mooses Tooth Projects in Alaska.

Alaska also is home to the single largest project proposal to feature WorleyParsons: Exxon Mobil Corporation (NYSE:XMO) (Irving, Texas) and TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) estimated $5.5 billion natural gas pipeline from Alaska's North Slope to the Kenai Peninsula. The 807-mile line is designed to move an estimated 30 trillion cubic feet of gas from Prudhoe Bay to Nikiski, where it would be processed into liquefied natural gas (LNG) at a plant before being shipped overseas.

The pipeline is related to Chevron Corporation's (NYSE:CVX) (San Ramon, California) $45 billion-to-$65 billion Alaska LNG Project, which, if approved, would not begin construction until 2020 at the earliest. For more information, see Industrial Info's project report.

The $3.3 billion price tag for the acquisition of Jacobs' Energy, Chemicals and Resources segment is more or less identical to WorleyParsons' own market capitalization on the eve of the deal, according to Bloomberg.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.