) recently announced that it has entered into an agreement with
) to acquire its E-Gas Technology business. The financial terms
of the deal were not disclosed.
The decision to acquire E-Gas Technology is a strategic move
by Chicago Bridge, a leader in the LNG storage niche market, as
it will help the company to cater to the rising demand for energy
infrastructure, especially in the LNG, gas processing and oil
sands markets. Projects from round the world drove the upside
during the year.
Therefore, the company is very positive about the increase in
order activity in the LNG division. Recently, in Mar 2013, the
company received a project from Asia for the engineering,
procurement, construction and commissioning work for LNG storage
tanks. The contract is expected to be completed by 2015 and is
valued at more than $180 million.
The E-Gas solids gasification technology is a verified and
established procedure to convert coal or petroleum coke into
syngas. Syngas or synthesis gas is a fuel gas mixture comprising
primarily of hydrogen, carbon monoxide and carbon dioxide. Syngas
is basically used for power generation or can be further
converted to substitute natural gas, hydrogen and downstream
methanol-related chemicals production.
Further, E-Gas Technology converts coal in an eco-friendly
manner. The process is also cost effective and removes
approximately 95% of the mercury in coal. In addition, the
technology recovers almost about 99% of the sulfur, which is
further marketed for use in the fertilizer industry. Furthermore,
the gasification process produces no ash, but recycles byproducts
into useful products including road construction materials.
Phillips 66 is a holding company created after the spin off of
the downstream assets of
). Based in Houston, Texas, Phillips 66 is primarily engaged in
producing natural gas liquids and petrochemicals.
Through the acquisition of the E-Gas Technology, Chicago
Bridge & Iron expands its scope into the syngas value chain.
Syngas derived from gasification technologies has received
significant attention and investment in the current years. The
growing market for syngas is a consequence of the rising energy
demand and climate change problems.
Chicago Bridge & Iron currently has a Zacks Rank #2 (Buy),
similar to another industry player
Orion Marine Group Inc
CHICAGO BRIDGE (CBI): Free Stock Analysis
CONOCOPHILLIPS (COP): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
PHILLIPS 66 (PSX): Free Stock Analysis Report
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