Foster Expands Gas Storage - Analyst Blog
November 28 2011 - 12:39PM
Zacks
Foster Wheeler Upstream, a division of Foster Wheeler
AG’s (FWLT) Global Engineering and Construction Group,
will be providing its project management support to the 35
billion-cubic-foot Ryckman Creek natural gas capacity storage
facility. The contract has been received from Ryckman Creek
Resources, LLC, a subsidiary of Peregrine Midstream Partners, LLC.
The natural gas markets at the Opal Hub in Wyoming will be served
by the new gas storage facility.
The third-quarter 2011 bookings of Foster Wheeler will
incorporate the contract value. Foster Wheeler will help Ryckman
Creek Resources to start the project successfully. The work on the
project will be carried on by Foster Wheeler Upstream through the
third quarter of 2012.
Foster Wheeler has been working on gas storage projects in
Matagorda County, Texas, Evangeline Parish, Louisiana and in
Europe. The current project is an add on to the company'sexperience
in gas storage.
Longer term, Foster Wheeler believes that global demand for
electrical energy will continue to grow and that solid-fuel-fired
steam generators will fill a significant portion of this
incremental generating capacity. The fuel-flexibility of CFB steam
generators enable them to burn a variety of fuels other than coal
and produce carbon-neutral electricity when fired by biomass. In
addition, the company’s steam generators can be designed to
incorporate supercritical technology, which significantly improves
efficiency while reducing emissions.
However, the company is subject to various environmental laws
and regulations in the countries in which it operates. If it fails
to comply with these laws and regulations, it may incur significant
costs and penalties that could materially affect its business,
financial condition, results of operations and cash flows. Its
business may be adversely impacted by regional, national and/or
global requirements to significantly limit or reduce greenhouse gas
emissions in the future.
Foster Wheeler AG is based in Zug Switzerland, but its
operational headquarters are in Clinton NJ USA. The majority of
Foster’s revenues and new businesses originate from outside the
United States. The company serves the following industries:
Oil and Gas; Oil Refining; Chemical & Petrochemical;
Pharmaceutical; Environmental; Power Generation; and Power Plant
Operation and Maintenance. The major competitors of Foster Wheeler
are Fluor Corporation (FLR) and Jacobs
Engineering Group Inc. (JEC).
Currently, we are maintaining a Zacks #5 Rank (short-term
Strong-Sell recommendation) on Foster Wheeler.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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