Here is a round up of some key developments in the engineering, procurement and construction (EPC) sector. In the past seven days we have seen Saipem secure a USD1.8 billion deal for Stage 2 of the Shah Deniz Project, ICA Fluor win a substantial pipeline
Saipem has won a new offshore engineering and construction contract in Azerbaijan, valued at approximately USD1.8 billion. BP, on behalf of the Shah Deniz consortium, has awarded the Saipem, Bos Shelf and Star Gulf venture a transportation and installation contract for the Stage 2 development of the Shah Deniz field. The field is located 90 kilometers offshore Azerbaijan, in water depths from 75 m to 550 m.
ICA Fluor signed a contract with TAG Pipelines Sur S. de R.L. de C.V for the EPC, testing, commissioning and start-up of the 291.7 km Ramones II Sur Gas Pipeline. The pipeline will travel through the states of San Luis Potosi, Queretaro and Guanajuato in Mexico and will be completed in the second quarter of 2016. Read more about it here.
Nordex has won a contract from Exelon Wind and will supply 16 N100/2500 turbines to the 40 MW Fourmile Wind Energy Project in northwestern Maryland, USA. Nordex also secured a USD139 million loan from the European Investment Bank (EIB) to fund research and development in the wind power technology sector.
Wood Group GTS has won a USD3.2 million contract from National Grid to provide gas turbine icon governor control system upgrades to nine Rolls-Royce Avon gas turbines.
Gazprom Neft has signed a Memorandum of Intent to implement the South Stream project in Austria. The memorandum reflects the parties' intentions to construct the Austrian section of the South Stream gas pipeline with the throughput capacity of up to 32 billion cu m Sea coast in Bulgaria through Serbia and Hungary to Austria.
South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cu m across the Black Sea to Southern and Central Europe. See more here.
Foster Wheeler announced today that subsidiaries of its Global Engineering and Construction Group, together with a joint venture partner for the project, Altair Strickland LLC, have been awarded contracts by Pemex for the engineering, design, procurement, construction, commissioning, and start-up of slide valve systems on the Foster Wheeler delayed coker units at two refineries in Mexico: the Hector R. Lara Sosa Refinery located in Cadereyta, Nueva Leon, and the Francisco I. Madero refinery in Ciudad Madero, Tamaulipas. Both projects are scheduled to be completed during refinery turnarounds in 2015. Find more details here.
A Foster Wheeler subsidiary has also been awarded two contracts for the design and supply of five steam condensers and thirty feed-water heaters for Saline Water Conversion Corporation's (SWCC) Yanbu Power and Desalination Plant, Phase 3, located in Saudi Arabia. More information here.
Sellafield and Tokyo Electric Power Co. (TEPCO) signed a cooperation statement for Sellafield to help with the clean up at Fukushima Daiichi nuclear power plant in Japan. See more here.
Oman Oil Refineries and Petroleum Industries Company (ORPIC) and a consortium of 21 financial institutions have agreed terms on a USD2.8 billion loan for ORPIC's projects, including the Sohar Refinery Improvement Project (SRIP). Read more about it here.
A major step has been taken towards a new nuclear power station at Moorside, West Cumbria that will create at least GBP10 billion worth of investment and thousands of jobs. The Nuclear Decommissioning Authority has agreed key commercial terms with NuGen to extend a land option agreement that reaffirms the consortium's commitment to build three reactors at Moorside. The reactors, to come online from 2024, will deliver 3.4GW of new nuclear capacity, enough to power up to 6 million homes. Get more information here.
Toshiba in January said it would buy a 60 percent share in the NuGeneration Limited Moorside nuclear project, which calls for three, 1,100-MW Westinghouse AP1000 reactors. The project will be built in partnership with GDF Suez. The first reactor is expected online in 2024.
General Electric has proposed to purchase Alstom's thermal power, renewable energy and electricity grid businesses for USD13.5 billion. Alstom has positively received the bid and committee of directors will review the bid by June 2, 2014. Find more details here.
Power and automation technology group ABB has completed the sale of Thomas & Betts' heating, ventilation and air conditioning (HVAC) business to Nortek, Inc. for USD260 million in an all-cash transaction.
ABB has also sold the Power Solutions business of Power-One to Bel Fuse Inc. for approximately USD117 million. The sale is subject to customary regulatory clearance and is expected to close in the second quarter of 2014.
ABB divested these businesses because of limited synergies with its core portfolio, said the company. Read more about these announcements on ABB's website.
El Paso Pipeline Partners announced that it would acquire from Kinder Morgan 50 percent interest in Ruby Pipeline, 50 percent interest in Gulf LNG and 47.5 percent interest in Young Gas Storage. The transaction value is approximately USD2 billion, including USD1.012 billion of proportionate debt at Ruby and Gulf LNG. See more details here.
BP has agreed to sell interests in four BP-operated oilfields on the North Slope of Alaska to Hilcorp. The sale agreement includes all of BP's interests in the Endicott and Northstar oilfields and a 50 percent interest in each of the Liberty and the Milne Point fields. The sale also includes BP's interests in the oil and gas pipelines associated with these fields. Find out more here.
Berkshire Hathaway Energy has agreed to acquire AltaLink, an indirect, wholly owned subsidiary of SNC-Lavalin Group Inc. Under the terms of the agreement, Berkshire Hathaway Energy will purchase 100 percent of AltaLink for an estimated USD2.9 billion in cash. Read more about it here.
Effective June 1, 2014, Kate Holzhauser will join Chevron Phillips Chemical as vice president, environment, health, safety and security. See further details here.
Elias Gedeon has joined The Babcock & Wilcox Company (B&W) as senior vice president and chief business development officer. More information here.
For more information about any of these EPC developments, or if you would like to share details of projects in your region, please contact David Kershaw.