Fluor to Serve 1st CCS Project - Analyst Blog
October 11 2012 - 12:00PM
Zacks
Recently, Fluor Corporation (FLR) won an
engineering, procurement and construction contract from Shell.
Fluor will be working on Shell’s carbon capture facility for its
Carbon Capture and Storage (CCS) Quest project, which is first of
its kind, at the Athabasca Oil Sands project in Alberta, Canada.
The value of the contract has not been disclosed but it will be
included in the third quarter booking of Fluor.
The Athabasca Oil Sands Project is jointly owned by Shell,
Chevron and Marathon Oil and has the support of the Canadian and
Alberta governments. The CCS project won is first-of-its kind. The
Athabasca Oil Sands Project produces bitumen, which is piped to
Shell’s Scotford Upgrader.
Fluor will use its 3rd Gen Modular Execution approach
for the carbon capture facility at the Scotford Upgrader near
Edmonton, Alberta. The facility has the capacity to capture 1.1
million of carbon tonne-per-year. The carbon captured at the
facility will be sent to an underground storage site about 80
kilometers from the facility. Preliminary services and front-end
engineering and design of Fluor are being used by Quest since
2009.
Flour has been working on CCS technology for the past two
decades. Further, the company has worked on a number of projects of
Shell and in Canadian oil sands industry. The receipt of such an
important contract testifies the fact that Fluor’s CCS technology
occupies an enviable position has good regard in the market it
operates.
The technology helps customers to take care of their carbon
footprint and sustainability needs. Thus, Fluor has played a
significant role and has been involved in keeping the environment
meticulously clean by providing clean energy for a long time with
the help of its technology.
Fluor serves a diverse set of industries worldwide, including
oil and gas, chemical and petrochemicals, transportation, mining
and metals, power, life sciences and manufacturing. It is also a
primary service provider to the U.S. federal government. The
company’s prime competitor is Jacob’s Engineering
Group (JEC).
We continue to maintain a Neutral rating on Fluor for the long
term. The company has a Zacks #2 Rank (Buy recommendation) over the
next one-to-three months.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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