Dive Brief:
- Fluor announced Monday a contract from New Fortress Energy for the engineering, procurement and fabrication management of the NFE Fast Liquefied Natural Gas project in the U.S. Gulf of Mexico, according to a company press release.
- The project is a 1.4 million tonnes-per-annum LNG gas treating and liquefaction plant, designed to be placed on fixed offshore platforms.
- Although revenue in other segments except for Energy Solutions fell in the first quarter, Fluor expects positive revenue growth this year, driven by its energy work.
Dive Insight:
The Fast LNG 2 project marks the second offshore liquefied natural gas plant project that NFE, a New York City-based integrated gas-to-power company, has awarded to Fluor in 2022. Fluor will book the reimbursable contract value in its second quarter filing, according to the release.
LNG production off the coast of Louisiana can support the European Union’s goal to end its dependence on Russian fossil fuels and enables NFE to access multiple gas supply sources, said Jim Breuer, Fluor’s Energy Solutions Group president, in the release.
“Fluor, in conjunction with key licensors and suppliers, provides NFE with an integrated modular mid-scale LNG export solution for these projects,” said Breuer. “The Fluor design and execution plan facilitates repeatable project models that can be used to replicate similar plants in the future.”
The U.S. is the world’s largest natural gas producer, but its output is slumping even after gas-producing Russia invaded Ukraine, driving up demand, according to Reuters. Despite prices near 14-year highs, the country’s main producers are seeing growth slow.
Fluor won the first NFE Fast LNG 1 project in the first quarter this year. The project is a similar modular mid-scale design, installed on repurposed drilling jack-up rigs, according to the release.
The Irving, Texas-based construction company reported revenue and backlog drops in the first quarter, but maintained its expectation for overall revenue to increase approximately 10% this year, said CFO Joe Brennan during its first quarter earnings call. Fluor’s Energy Solutions segment revenue increased 18% in the first quarter from a year ago, according to the company’s first quarter earnings report.
Fluor reports its second quarter earnings on Friday, Aug. 5, 2022.
