Fluor Corporation (FLR) won an energy contract from NEXUS Gas Transmission, LLC for a natural gas transmission project for an undisclosed value. The company has registered the contract in its first-quarter 2015 backlogs.
As per the agreement, Fluor will provide engineering, construction and procurement services for the natural gas transmission pipeline in Ohio and Michigan. The pipeline spans 250 miles and has the capability of transporting 2 billion cubic feet of gas per day. Spectra Energy Partners, LP (SEP) and DTE Energy Co. (DTE) are the lead developers of this project, which is projected to have a total cost of around $2 billion.
Fluor will be managing the mainline pipeline of this project, which is about 42 inches in diameter. Apart from this, the company will design and control the development of around four compressor stations in Ohio that will uphold the gas flow pressure through the pipeline. Along with this, four meter stations will be set up to facilitate gas quality monitoring and flow control services.
The NEXUS contract win is a strategic fit for Fluor and justifies its strong position in the pipeline market of North America. The company possesses expertise in offering cost-effective pipeline design and construction related services to clients. Besides, Fluor’s integrated solution services to this natural gas transmission project will aid in catering to the increasing industrial and domestic natural gas demand especially in Upper Midwest U.S. and Canada.
Of late, Fluor has been benefiting from the rising demand for energy across the globe by means of new contract wins. Most recently, the company won a five-year integrated services supplier contract from Pacific Gas and Electric Co. (PCG) for an undisclosed value. Also, on earlier occasions, Fluor, being an industry leader in nuclear remediation at U.S government facilities, won contracts for developing nuclear and renewable energy projects in regions like Europe and China.
Fluor is slated to report its fourth quarter and 2014 earnings results on Feb 18, 2015. The Earnings ESP is 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.10. This combined with the company’s Zacks Rank #3 (Hold) makes surprise prediction difficult.
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