Fluor Corporation (FLR) received a gas-to-methanol project contract from South Louisiana Methanol L.P, a project developed by Todd Corporation and ZEEP Management U.S. The financial terms of the deal were not disclosed, but Fluor has booked the contract under its third quarter 2013.
According to the contract, Fluor will primarily be providing engineering and design services to this St. James Parish, LA-based project. This project is expected to produce approximately 5,000 metric tons of methanol daily. Presently, Fluor is finalizing the process design for the facility.
Fluor Corporation has a strong presence and brand name in executing front-end engineering and design (FEEDQ) contracts in large petrochemical and petroleum companies. In Jul 2013, Fluor procured a front-end engineering and design (FEEDQ) contract for Sasol Ltd’s (SSL) Lake Charles Chemical Complex situated in Louisiana.
This facility, once completed, will be a world-class ethane cracker and associated derivative chemicals facility of this Johannesburg-based integrated energy and chemical company, Sasol Ltd. The project is expected to begin operations by 2017 and is expected to produce 1.5 million of ethylene every year.
Prior to this in March 2013, Fluor had received a FEED (Front-End Engineering and Design) contract jointly from Qatar Petroleum and Royal Dutch Shell plc for the Al-Karaana Petrochemicals Complex in Ras Laffan Industrial City, Qatar.
Fluor currently carries a Zacks Rank #3 (Hold). Stocks in the same sector that are worth a look include Lennox International, Inc. (LII) and Meritage Homes Corporation (MTH). While Lennox has a Zacks Rank #1 (Strong Buy), Meritage carries a Zacks Rank #2 (Buy).