Foster Wheeler was awarded a contract by Pecket Energy to perform feasibility, conceptual and basic engineering studies, and develop an overall investment cost estimate for a substitute natural gas (SNG) production facility to be built near Punta Arenas, Chile, the companies said on Wednesday.
The value of the award was not disclosed and will be included in Foster Wheelers first-quarter 2013 bookings.
The main objective of the project is to produce syngas that will be used as a clean feedstock for the production of SNG, which gas is intended to be distributed to the existing grid in the region of Magallanes, Chile, for domestic consumption or for industrial purposes, according to the companies.
The new facility intends to include several major units, including air separation, partial oxidation for syngas production, syngas treatment, acid gas removal, methanation and solid sulfur production.
Foster Wheelers scope of work is expected to be completed by mid-2013.
Pecket Energy is a Chilean company focused on coal-based energy business development. Pecket Energy belongs to ICV, a Chilean company which has been active in mining and infrastructure developments in Chile for more than 50 years.