Chicago Bridge and Iron Company N.V.
) recently received a contract for the construction of two
low-temperature tanks from Sunoco Partners Marketing and
Terminals L.P. for their project in Nederland, Texas.
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Valued at over $50 million, the deal requires Chicago Bridge to
provide Engineering, Procurement, Construction (EPC) and
pre-commissioning for a couple of large low-temperature tanks at
Mariner South project of Sunoco Logistics.
In Jul 2013, Chicago Bridge had received a construction contract
from Sunoco for a turnkey propane terminal and a de-ethanizer
facility in Marcus Hook, Penn.
Chicago Bridge is a leader in the LNG storage niche market. The
company expects more contract wins in the near term in this
segment specifically for the low temperature storage systems in
petrochemicals industry. Chicago Bridge plans to aggressively
capture market share in this domain.
Chicago Bridge is expected to benefit from the rising global
demand for energy infrastructure, especially in the LNG, gas
processing and oil sands markets. The surge in shale gas
revolution in North America and the recent approval from the U.S.
Department of Energy (DOE) for the export of LNG has created a
strong opportunity and thereby a good market for Chicago Bridge.
Chicago Bridge is among the world's leading integrated EPC
service provider and major process technology licensors,
providing comprehensive solutions to customers primarily in the
energy and natural resource industries.
Chicago Bridge currently carries a Zacks Rank #3 (Hold). Stocks
in the same sector that are worth reckoning include
Lennox International, Inc.
), which carries a Zacks Rank #1 (Strong Buy),
Hopewell Highway Infrastructure Limited
Meritage Homes Corp.
), both of which carry a Zacks Rank #2 (Buy).