Recently, Fluor Corporation (FLR) won an engineering, procurement and construction contract from Shell. Fluor will be working on Shell's carbon capture facility for its Carbon Capture and Storage (CCS) Quest project, which is first of its kind, at the Athabasca Oil Sands project in Alberta, Canada. The value of the contract has not been disclosed but it will be included in the third quarter booking of Fluor. The Athabasca Oil Sands Project is jointly owned by Shell, Chevron and Marathon Oil and has the support of the Canadian and Alberta governments. The CCS project won is first-of-its kind. The Athabasca Oil Sands Project produces bitumen, which is piped to Shell's Scotford Upgrader.
Fluor will use its 3rd Gen Modular Execution approach for the carbon capture facility at the Scotford Upgrader near Edmonton, Alberta. The facility has the capacity to capture 1.1 million of carbon tonne-per-year. The carbon captured at the facility will be sent to an underground storage site about 80 kilometers from the facility. Preliminary services and front-end engineering and design of Fluor are being used by Quest since 2009.
Flour has been working on CCS technology for the past two decades. Further, the company has worked on a number of projects of Shell and in Canadian oil sands industry. The receipt of such an important contract testifies the fact that Fluor's CCS technology occupies an enviable position has good regard in the market it operates.
The technology helps customers to take care of their carbon footprint and sustainability needs. Thus, Fluor has played a significant role and has been involved in keeping the environment meticulously clean by providing clean energy for a long time with the help of its technology.
Fluor serves a diverse set of industries worldwide, including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government. The company's prime competitor is Jacob's Engineering Group (JEC).
We continue to maintain a Neutral rating on Fluor for the long term. The company has a Zacks #2 Rank (Buy recommendation) over the next one-to-three months.