A subsidiary of Foster Wheeler AG’s (FWLT) Global Engineering and Construction Group recently received a contract from Axion Energy Argentina S.A. The scope of the contract requires the subsidiary to provide engineering and procurement services for a new delayed coking unit at the Campana Refinery in Buenos Aires Province, Argentina.
The services to be provided to the coking unit are based on Foster Wheeler’s SYDEC delayed coking technology. The financial details of the deal were not disclosed, but the contract was booked in the third quarter.
Delayed coking is a cyclic process that thermally cracks vacuum residue or other residue feedstocks into gas, light products and petroleum coke, and is a key technology for residue upgrading or zero fuel oil production. In today's environment, refiners recognize the need for delayed coking to keep pace with the growing demand for transportation fuels, more stringent legislation and the opportunity for significant improvement in refinery profit margins.
Therefore, with the help of Foster Wheeler’s SYDECSM (Selective Yield Delayed Coking), refiners can process heavier, cheaper crudes to increase refinery margins, and convert low-value residues to high-value fuels with moderate capital investment. Above all, this technology is safe, reliable and well-proven, meeting all regulatory requirements.
Prior to this, the Foster Wheeler’s subsidiary had executed successful delayed coking projects in the Middle East and Latin America.
Foster Wheeler has a Zacks Rank #3 (Hold). Other companies in the industry that look promising at the moment include VSE Corp. (VSEC), Jacobs Engineering Group Inc. (JEC) and Quanta Services Inc. (PWR). VSE Corp has a Zacks Rank #1 (Strong Buy), while Jacobs Engineering and Quanta Services both have a Zacks Rank #2 (Buy).