Chicago Bridge & Iron Company N.V.
) announced that its joint venture (JV) with Chiyoda
International Corporation has received a Liquefied natural gas
(LNG) contract. Louisiana-based Cameron LNG, LLC, a subsidiary of
), has awarded the $6 billion contract for the construction of
its Cameron Liquefaction Project in Hackberry.
Cameron LNG is an LNG receipt terminal that processes natural
gas for various industries and electricity plants. Apart from
Sempra Energy, other stakeholders in the company are GDF SUEZ
S.A., a unit of Mitsubishi Corporation and
Mitsui & Co. Ltd
), each having a 16.6% stake.
Per the contract, the JV will be required to provide core
services including engineering, procurement and construction
(EPC). It will be responsible for the inclusion of additional
facilities for liquefying and exporting natural gas at the
existing LNG regasification facility.
The project will create about 3,000 jobs at the facility. CBI
will also be required to scale up employment at its fabrication
and construction facilities. The company's strong presence in the
Gulf Coast along with its expertise in engineering and
construction projects will significantly benefit this project.
Moreover, CBI is one of the few engineering, procurement and
construction and process technology contractors with in-house
fabrication facilities, allowing it to offer modular
construction, wherever feasible.
The project is designed to have a troika of liquefaction
trains, having an installed capacity of as much as 13.5 million
tons LNG per annum. In Feb 2014, Cameron received an
authorization from the U.S. Department of Energy (DOE) to extend
its LNG export to a number of new countries, even those not
having a free trade agreement with the U.S. The development of
this project will allow the company to meet increased processed
natural gas requirements.
Chicago Bridge & Iron Company currently holds a Zacks Rank
#3 (Hold). Investors interested in this sector could also
), which carries a Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
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