HOUSTON, Sept. 26, 2011 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related project delivery solutions, announced today that it received two separate lump sum project awards from one of North America's largest providers of midstream services to producers and consumers of natural gas, crude oil, natural gas liquids, refined products and petrochemicals. The value of the combined projects is estimated to be approximately $11 million.
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Under the first agreement, ENGlobal contracted to provide engineering, procurement and construction support for an ethanol blending system at the client's refined products facility in Indiana. ENGlobal's scope includes mechanical, civil, structural and electrical services for the blending terminal, including the design and installation of a new storage tank, dike containment, and associated piping and electrical services. In 2010, ENGlobal provided support for the truck loading station at a similar facility.
- Under the second contract, ENGlobal will be responsible for all engineering, design, and procurement for and construction of a grassroots crude oil storage terminal on an existing pipeline in Texas. ENGlobal's scope includes the design and installation of a metering station, truck unloading rack, crude oil storage tank, pipeline pumps, and accessories. Another portion of the same project will authorize ENGlobal to engineer, design, procure and construct a crude oil pipeline metering station in New Mexico.
ENGlobal recently began work on the projects with construction expected to begin in the third quarter 2011 and completion in second quarter 2012.
Edward L. Pagano, President and Chief Executive Officer of ENGlobal, said: "Our Engineering & Construction segment specializes in smaller-scope lump sum facility projects, such as this most recent award. We appreciate the opportunity to work once again with one of the largest midstream energy partnerships and look forward to building on the strong relationship we have developed over the years."
Mr. Pagano continued: "The suite of services we offer furthers ENGlobal's strategy to pursue a preferred provider status with our clients. By providing high quality and value-added solutions, we have been able to enhance our clients' overall productivity, safety practices, and operational efficiencies."
About ENGlobal
ENGlobal (Nasdaq:ENG), founded in 1985, is a provider of engineering and related project services principally to the energy sector throughout the United States and internationally. ENGlobal operates through three business segments: Engineering & Construction, Field Solutions and Automation. The Engineering & Construction segment provides consulting services relating to the development, management and execution of projects requiring professional engineering as well as inspection, construction management, mechanical integrity, field support, quality assurance and plant asset management. ENGlobal's Field Solutions segment provides project management and staffing for right-of-way and site acquisition, permitting, regulatory, and legislative outreach. The Automation segment provides services related to the design, fabrication and implementation of process distributed control and analyzer systems, advanced automation, information technology, cyber security and heat tracing projects. ENGlobal has approximately 2,100 employees in 12 offices and 9 cities. Further information about the Company and its businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's expectations regarding its new contract and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) our successful execution of this project award and our receipt of prompt payment for the services we render to our client; (2) our ability to accurately estimate costs and fees on this and other fixed-price contracts; (3) our ability to attract and retain qualified personnel; (4) our ability to achieve our business strategy while effectively managing costs and expenses; (5) our ability to collect accounts receivable in a timely manner; (6) our ability to win new projects that we can perform on a profitable basis; (7) our ability to respond appropriately to the current worldwide economic situation, including, among other things, political instability and the effect of changes in the price of oil; (8) the effect of changes in laws and regulations with which the Company must comply and the associated costs of compliance with such laws and regulations, either currently or in the future, as applicable; (9) the effect of changes in accounting policies and practices as may be adopted by regulatory agencies, as well as by the FASB; and (10) the effect of changes in our competitive position within our market in view of, among other things, the resulting changes in demand for our services and competitive pricing pressure. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in ENGlobal's filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements set forth in the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.
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