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KBR wins EPC Services Contract for Koch Nitrogen Urea Expansion

KBR has announced it has been awarded a reimbursable contract by Koch Nitrogen Company, LLC to provide engineering, procurement, and construction (EPC) services for a new grassroots urea plant, part of a $1.3 billion expansion project by Koch Nitrogen at its Enid, Oklahoma facility. In addition, KBR will provide construction management services for expansion of the existing ammonia plants and site utilities and infrastructure to support the project.

The expansion will increase the plant’s urea and ammonia production capacity by more than one million tons per year. The new urea plant will have an annual urea production capacity of 900,000 tons. Koch Nitrogen’s Enid facility is one of the largest fertilizer production plants in North America.

This contract award is a testament to KBR’s capabilities and solidifies the company’s world leadership in ammonia technology, according to KBR President and CEO Stuart Bradie. Considered a world leader in ammonia technology, KBR has been involved in the licensing, design, engineering and/or construction of more than 230 ammonia plants worldwide.

“KBR has a long history of delivering customer value,” Bradie said. “We’re excited about this major contract award which continues our long relationship with Koch Nitrogen Company, LLC and, at completion, will bring Koch Nitrogen and its customers the benefits of our EPC and fertilizer technology expertise.”

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KBR wns EPC Contract for new High-density Polyethylene Facility in La Porte, Texas

KBR Inc.has announced it has been awarded a contract from Gemini HDPE LLC, a manufacturing joint venture between INEOS Olefins & Polymers USA (INEOS) and Sasol, to provide engineering, procurement, and construction (EPC) services for a new high-density polyethylene (HDPE) facility to be located at INEOS’s Battleground Manufacturing Complex in La Porte, Texas.

The new facility is designed to produce 470 kilotons per annum of bimodal HDPE using Innovene™ S process technology licensed from INEOS Technologies. The new, single-train facility will include new polymerization, pelletization, and railcar load-out facilities, plus upgrades to existing utilities and infrastructure.

Engineering and procurement services will be split between KBR’s Houston Operating Center and KBR’s Monterrey Engineering Center. KBR will provide direct hire construction with selected subcontracts to construct the new facility. Upon completion, the new facility will be one of the largest in the Americas.

“This significant win is a testament of the excellent work performed with the Gemini team during the FEED portion of the project,” said Stuart Bradie, KBR President and Chief Executive Officer. “We look forward to continuing our work with INEOS and Sasol.”

The contract value was not disclosed. Expected revenue from the contract will be included in the third quarter 2014 backlog of unfilled orders for the Hydrocarbons segment.

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SNC-LAVALIN signs MOU with CNNC to develop Project Opportunities in China and others

SNC-Lavalin has announced that it has signed a formal memorandum of understanding (MOU) with the China National Nuclear Corporation (CNNC) to jointly develop and pursue power generation, mining and metallurgy and nuclear-related environmental protection projects.

The MOU signing took place today at the Westin Bayshore in Vancouver, British Columbia. The agreement was signed by Preston Swafford, Chief Nuclear Officer, SNC-Lavalin Group Inc. and President and CEO, Candu Energy Inc., and Qian Zhimin, President, CNNC. Also in attendance were representatives from the Chinese National Energy Administration and the Government of Canada.

Under the agreement, SNC-Lavalin will work with the CNNC to develop reactors using Advanced Fuel CANDU (AFCR) technology in China. Developed by SNC-Lavalin’s wholly-owned subsidiary, Candu Energy, AFCR technology uses both recycled uranium- and thorium-based fuels to deliver high-performing reactors with strong environmental benefits. The MOU also provides a framework for collaboration between SNC-Lavalin and CNNC on uranium mining projects in China, and the pursuit of international project opportunities in various high-growth sectors and markets.

“We are pleased to sign this strategic partnership agreement with CNNC to develop nuclear and uranium projects in China, while pursuing high-potential opportunities abroad,” said Preston Swafford. “These projects have the potential to generate billions of dollars for the Canadian and Chinese economies, while supporting China’s growing demand for energy.”

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SNC-LAVALIN acquires KENTZ to be global Tier-1 Engineering and Construction Company

SNC-Lavalin Group Inc. has  announced that it has completed its acquisition of Kentz Corporation Limited, a global company with 15,500 employees operating in 36 countries. Kentz provides industry-leading engineering, construction management and technical support services to clients in the oil and gas sector.

The acquisition of Kentz supports SNC-Lavalin’s ongoing transformation into a global Tier-1 engineering and construction (E&C) company. The transaction creates a group with approximately 45,000 employees, annual revenues of about C$10 billion and a backlog of roughly C$13 billion as per 2013 figures. The combined company will also have a strong position in the world’s most dynamic growth markets, including the Middle East, North America, Latin America and Asia-Pacific.

“SNC-Lavalin is thrilled to welcome the employees of Kentz, who are the heart and soul of the remarkable company we are acquiring today,” said Robert G. Card, President and CEO, SNC-Lavalin Group Inc. “We expect that our combined capabilities will give us one of the best broad-based service offerings in the E&C industry, while expanding our presence in key growth markets.”

The acquisition of Kentz transforms SNC-Lavalin’s oil and gas capabilities, creating a group of approximately 20,000 high-caliber employees with industry leading expertise for large and complex projects in the upstream, liquefied natural gas (LNG), unconventional (shale gas and oil sands), pipelines, offshore jackets and steam-assisted gravity drainage (SAGD) sectors.

“We have now begun implementing our plan, which aims to ensure our teams are combined efficiently, respectfully and as rapidly as possible,” said Neil Bruce, President, Resources, Environment & Water, SNC-Lavalin Group Inc. “We will be bringing together the best capabilities of our two firms for the direct benefit of our clients. Our goal will be to build strong and lasting relationships with our customers through consistently delivering on our commitments and providing the best mix of value and services.”

Kentz will be incorporated into SNC-Lavalin while simultaneously integrating SNC-Lavalin’s current Oil & Gas business into Kentz’s operations. Christian Brown, Kentz’s Chief Executive Officer, now becomes President, Oil & Gas, SNC-Lavalin Group Inc. Mr. Brown will continue to be stationed in Houston, Texas, and will report directly to Neil Bruce.

“Joining SNC-Lavalin will provide us with the ability to execute larger scopes for major projects, and enhance our access to new geographies in both North America and Latin America,” said Christian Brown. “We look forward to bringing our clients complete end-to-end solutions for their projects by merging SNC-Lavalin’s strong front-end engineering and design capabilities with our industry-leading construction management, commissioning and operations capabilities.”

SNC-Lavalin paid £9.35 (C$17.13) per share for a total purchase price of approximately £1.2 billion (C$2.1 billion). Kentz shareholders voted in favour of SNC-Lavalin’s offer at a meeting convened by order of the Court and an Extraordinary General Shareholders Meeting, both held on August 11, 2014. The offer was structured as a Scheme of Arrangement and the Scheme Court Hearing was held on August 21, 2014. Following the sanction of the Court, the acquisition became effective in accordance with its terms on August 22, 2014.

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Matrikon recognizes Top Channel Partners in the Americas

Matrikon International celebrated the success of its key distributors in the Americas at the annual Channel Partner of the Year awards ceremony earlier this month. The awards ceremony, part of Matrikon's Distribution Channel Partner Conference held in San Antonio, recognizes customer service, innovation and excellence among companies supplying and integrating Matrikon solutions in the Americas.

The top honors were given to ISS Connectivity and DUX Diligens. ISS Connectivity , headquartered in Bothell, WA received the award for Americas 2013 Channel Partner of the Year. DUX Diligens , headquartered in Mexico City, Mexico received the award for Americas 2013 System Integrator of the Year.

"I am very pleased to see ISS Connectivity in North America receive the MatrikonOPC Americas Distributor of the year award and for DUX in Mexico to receive our Americas System Integrator of the year award.” said Jeff Gould, general manager of MatrikonOPC. “Both ISS and DUX exemplify MatrikonOPC’s channel network. With their high degree of competence in OPC technology and our products, they consistently provide the right guidance, implementation expertise, and continued support. It is very exciting to see that we are able to extend our best practices through to our channels in a standardize manner that allows our customers to benefit from this locally."

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