WorleyParsons' 10 Top-Valued Projects Navigate Stormy Global LNG, Mining Markets
Global engineering and consultation leader WorleyParsons (North Sydney, Australia) is facing as many barriers as it is opportunities, as the waxing and waning fortunes of the liquefied natural gas (LNG) market remain the biggest driver behind the company's services. Industrial Info is tracking $213.21 billion in projects involving WorleyParsons in some capacity, almost half of which are attributed to the 10 highest-valued projects. More than 90% of the total can be attributed to four industries: Oil & Gas Production, Metals & Minerals, Power and Oil & Gas Pipelines.
Not surprisingly, the Oil & Gas Production Industry boasts the largest projects to involve WorleyParsons, led by Steelhead LNG Corporation's $30 billion LNG production and export facility in Port Alberni, British Columbia, which is split into a $15 billion Phase I and $15 billion Phase II. In October, Canada's National Energy Board approved four 25-year export licenses for the Port Alberni project, and Steelhead LNG has consistently taken care to consult with First Nations (aboriginal Canadians) who will be living near the facility. WorleyParsons Canada is slated to perform design-engineering services.
Another major Canadian project is Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) $25 billion LNG Canada Liquefaction Plant in Kitimat, British Columbia. WorleyParsons is performing engineering services for the first two trains at the facility, with AMEC Foster Wheeler plc (NYSE:AMFW) (London, England) and Stantec Incorporated (NYSE:STN) (Edmonton, Alberta) in other roles. But the companies with the LNG Canada consortium announced earlier this month that they were delaying the final investment decision indefinitely, given low commodity prices and the global glut in LNG production.
WorleyParsons also is heavily involved in one of Australia's most closely watched projects: Chevron Corporation's (NYSE:CVX) (San Ramon, California) Wheatstone LNG project, specifically the $11.24 billion first phase of the production plant and the $5.99 billion natural gas production platform, both of which are under construction. It is expected to export largely to India and East Asia, where demand for LNG is rising.
Despite its global glut, the LNG market is very active in Australia; according to energy consultant EnergyQuest, Australia's monthly LNG exports surged almost 19% in June to a record 3.6 million tonnes. But the weak prices for the product mean weak sales numbers for Wheatstone venture partner Woodside Petroleum (Perth, Australia), which recently saw them plunge more than 8% from the same quarter last year, according to WA Today. Nonetheless, UBS and other analysts believe Chevron stands to reap benefits from Wheatsone after it becomes operational, which currently is estimated to be mid-2017.
In the Metals & Minerals Industry, WorleyParsons is serving as general contractor on what is to be the world's largest iron-ore project: Vale S.A.'s (NYSE:VALE) (Rio de Janeiro, Brazil) $6.5 billion Serra Sul iron-ore mine in Canaa Dos Carajas, Brazil, nicknamed S11D. The project, which includes a mine, plant, and railway and port logistics, has been moving at an unusually smooth pace, given the rocky path traveled by most mining project amid historically weak commodity prices. S11D received its preliminary environmental license late last year, and it began its testing phase in February; Vale expects it to be operational late this year.
The four other highest-valued projects to involve WorleyParsons are:
$7 billion gas-to-liquids plant in Louisiana $7 billion gas-to-liquids unit addition in Louisiana $5.5 billion natural gas pipeline in Alaska $3.5 billion crude oil storage terminal in Oman
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