Chicago Bridge & Iron Company N.V.
) received a contract from Canada based energy infrastructure
development company, Pieridae Energy for providing Front End
Engineering and Design (FEED) services. The company will be
providing FEED for the latter's proposed liquefied natural gas
(LNG) export facility - Goldboro LNG in Canada.
The scope of the contract requires CBI to provide designing and
engineering services for a couple of LNG liquefaction trains and
its related facilities. This will set up the plant for the
subsequent engineering, procurement and construction phase.
Goldboro LNG facility will be established at the Goldboro
Industrial Park in Guysborough County, east coast of Canada. The
facility designed to process, store and export LNG, will have a
processing plant and other related facilities along with a marine
jetty. It will be North America's nearest mainland LNG export
terminal for Europe and India.
The facility is expected to receive all the necessary approvals
and permits by 2015. It is anticipated that the facility will be
operational by 2020, assuming that the construction phase will last
about four years. Once operational, the facility is likely to
produce about 10 million tonnes per annum (MTPA) of LNG with a
storage capacity of 690,000 cubic meters of LNG at the site itself.
Notably, Pieridae Energy has already signed a 20-year sales
agreement with E.ON Global Commodities SE last year for supplying
about 5 MTPA of LNG.
CBI is the leader in the LNG storage niche market. The company
is expected to benefit from the strong and growing energy
infrastructure market, especially for liquefied natural gas (LNG).
LNG is the company's strongest market, supported by its ability to
participate in multiple stages of development and strong base for
CBI currently has a Zacks Rank #3 (Hold). Some better-ranked
companies in the sector include
Emcor Group Inc.
Sterling Construction Co. Inc.
). All three carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CHICAGO BRIDGE (CBI): Free Stock Analysis
EMCOR GROUP INC (EME): Free Stock Analysis
TUTOR PERINI CP (TPC): Free Stock Analysis
STERLING CONSTR (STRL): Free Stock Analysis
To read this article on Zacks.com click here.