Chicago Bridge & Iron Co. (CBI) has secured a deal to supply a cryogenic natural gas processing plant in Malvinas, Peru, as part of an expansion of the Camisea gas project. CB&I’s deal, which is valued above US$45 million, is with Pluspetrol Peru Corporation S.A. as operator and contract administrator, on behalf of the licensees.

CB&I will be accountable for the engineering, procurement, modular fabrication and commissioning of a cryogenic unit designed to process up to 520 million cubic feet of gas per day. The unit, which is expected to be completed later in 2010, will treat gas extracted from the Pagoreni field, isolating the natural gas liquids from the gas stream.

CB&I has been involved in the Camisea project since its inception. It has supplied 4 cryogenic plants at Malvinas, as well as a fractionation and topping plant at Pisco, including the associated refrigerated and atmospheric storage tanks onsite. 

Recently, the company was also awarded a contract valued at US$50 million by Hyundai Heavy Industries to provide engineering services for the Goliat Floating Production, Storage and Offloading (FPSO) project. It is the first oil development initiative in the Norwegian sector of the Barents Sea. CB&I’s scope, including the detailed engineering for process topside modules, utility modules, flare boom and associated hull interface engineering for the FPSO, is estimated to be completed in the fourth quarter of 2010.

CB&I is a worldwide provider of fully-integrated specialty engineering, procurement and construction (EPC) services and related licensed processes, primarily used by the energy markets for large-scale storage and refining of liquids and gases. We estimate that the stock will continue to outperform over the near term. The company’s improving outlook and strong fundamentals only strengthen its appeal.
CB&I designs, procures, fabricates and builds facilities and major equipment for power industry customers around the globe.  Its expertise encompasses both traditional and emerging technologies, including electric, cogeneration nuclear, LNG, hydroelectric and wind power.

We currently have a Neutral recommendation on CB&I.

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