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TechnipFMC backs claim of LNG leadership

The French energy services company said in its second quarter earnings report it's a market leader in liquefied natural gas.

By Daniel J. Graeber
TechnipFMC backs claim of LNG leadership
Energy services company TechnipFMC backs claim of liquefied natural gas leadership with a contract announcement on one of the largest such projects in the world. Photo courtesy of TechnipFMC

July 26 (UPI) -- After boasting of its leadership in LNG, French energy services company TechnipFMC said it secured work at the one of the world's largest such projects.

For undisclosed terms, TechnipFMC said Thursday it secured a contract from the Australian subsidiary of Chevron for subsea development at the Gorgon liquefied natural gas project.

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"The phase 2 development aims to upgrade the project's existing subsea facilities to ensure production is maintained for future gas supply," the company's statement read.

Chevron in April announced plans for further development of the Gorgon natural gas project off the northwest coast of Western Australian. The entire Gorgon project will eventually produce 15.6 million tons of LNG per year, a fuel described by Chevron as "essential" for markets across Asia.

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LNG is delivered by sea and is afforded more options for delivery when compared to piped natural gas, which needs to cross borders that could be politically sensitive.

When commenting on second quarter results on Wednesday, TechnipFMC CEO Doug Pferdehirt said LNG was one of the company's growth pillars.

"In LNG, we are a clear market leader having delivered over 20 percent of global operating capacity, and we are currently executing several of the industry's key projects and front end engineering designs," he said in a statement.

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The company, barely a year out of the merger between French engineering company Technip and Houston offshore manufacturer FMC Technologies, reported double-digit declines in both profits and revenue for the second quarter.

Pferdehirt said at the beginning of the year that the markets recovery so far suggested more orders could come in, from subsea activity, to small- and mid-sized services.

"Total company inbound orders in the quarter improved to $4.2 billion - the largest quarterly inbound to date for our company," he said Wednesday. "This was the second consecutive quarter in which inbound orders exceeded revenues."

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