CBI Wins LNG FEED Contract from Pieridae

Zacks

Chicago Bridge & Iron Company N.V. (CBI) received a contract from Canada based energy infrastructure development company, Pieridae Energy for providing Front End Engineering and Design (FEEDQ) 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 investments.

CBI currently has a Zacks Rank #3 (Hold). Some better-ranked companies in the sector include Emcor Group Inc. (EME), Sterling Construction Co. Inc. (STRL) and Tutor Perini Corporation (TPC). All three carry a Zacks Rank #2 (Buy).

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