Foster Wheeler’s Egyptian FEED Deal

Foster Wheeler AG’s (NASDAQ:FWLT) subsidiary, Global Engineering and Construction Group, has been awarded a front-end engineering design (FEED) contract for the Qasr Compression Project in Egypt by the Apache Khalda Corporation.

In addition to providing project management consultancy (PMC) services for managing FEED for the project the company will also provide additional compression to the existing facilities at the Qasr gas condensate field. The field is located at about 525km west of Cairo, in the Western Desert region.

The contract value for this project for Foster Wheeler is undisclosed. The contract has been included in the third-quarter 2011 bookings of the company. By the end of 2011 the FEED work at the project is expected to be completed.

Longer term, Foster Wheeler believes that global demand for electrical energy will continue to grow and that solid-fuel-fired steam generators will fill a significant portion of this incremental generating capacity.

The fuel-flexibility of CFB steam generators enable them to burn a variety of fuels other than coal and produce carbon-neutral electricity when fired by biomass. In addition, the company’s steam generators can be designed to incorporate supercritical technology, which significantly improves efficiency and reduces emissions.