CB&I's 10 Top-Valued Projects Fueled by Major LNG Projects on Four Continents

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Researched by Industrial Info Resources (Sugar Land, Texas)--CB&I Incorporated (NYSE:CBI) (The Hague, Netherlands), also known as Chicago Bridge & Iron Company, is maintaining a healthy slate of projects, despite a slowing business environment due to the consistent weakness in commodity prices. According to Industrial Info's project database, CB&I is involved in more than 140 projects, with a total investment value (TIV) of $175.6 billion. More than half of the TIV is attributed to the 10 highest-valued projects, all of which involve construction and additions at liquefied natural gas (LNG) facilities.

With low oil prices a long-term reality, CB&I plans to focus on petrochemical and liquefied natural gas projects along the U.S. Gulf Coast in the near future, representatives said earlier this year at an investor day in New York. More than 70% of its engineering and construction revenues this year are expected to come from the U.S. Nonetheless, CB&I has a presence in major projects on five continents, with LNG increasingly its bread and butter.

"Since the end of 2013 through the end of 2015, we booked over $41 billion worth of new work," said Philip K. Asherman, the president and chief executive officer of CB&I, in the company's most recent quarterly conference call. "And a lot of that has to do with long, durable backlog, much of which goes out to 2019 and beyond."

At the end of the first quarter, CB&I had a project backlog of $21.2 billion.

On the impact of low commodity prices, Asherman said: "If there's customer impact in today's environment, it has to do with a delay in making financial commitments--and we've seen that. However, we haven't seen any cancellations in current backlog or in prospective work. So, that's good. It just seems to be pushing out a little further."

CB&I Lummus Global Technology, a subsidiary, is performing design-engineering services on the highest-valued project: Rosneft OAO's (Moscow, Russia) $15 billion Dalnevostochnyy LNG Liquefaction Plant in Ilyinskoye, Russia. The 5 million-metric-tonne-per-year facility will consist of a single train and a yet-to-be-determined number of storage tanks, to treat gas from Chayvo Gas Field. It also will include a marine port and jetty. For more information, see Industrial Info's project report.

In 2013, Russian President Vladimir Putin signed a law that allowed Rosneft to export LNG, and the company already has started seeing success with LNG. Last month, Rosneft made its first LNG delivery when it shipped to the port of Ain Sukhna in energy-starved Egypt, as part of a contract with Egyptian Natural Gas Holding Company (Cairo). LNG also is proving valuable to Russia in light of economic sanctions enforced after Putin's excursion into Ukraine in 2014; with oil prices remaining low, LNG gives the country something to offer international markets.

In North America, the highest-valued project to involve CB&I is Sempra Energy's (NYSE:SRE) (San Diego, California) $10 billion Cameron LNG Liquefaction Plant in Hackberry, Louisiana. CB&I is performing EPC services at the closely watched project, which involves building three 5 million-metric-ton-per-year liquefaction trains; a 160,000-cubic-meter LNG storage tank; a construction dock; and a truck-loading rack and storage tanks for natural gas liquids (NGLs). Gas will be sourced from the Appalachian Basin. For more information, see Industrial Info's project report.

Sempra has received approval from the U.S. Department of Energy to export to countries that are not part of the Free Trade Agreement. It has signed tolling agreements with Engie (formerly GDF Suez) (Paris, France), Mitsubishi Corporation (Tokyo, Japan) and Mitsui & Company Limited (Tokyo) for its total yearly capacity, covering 20 years.

The next two projects are part of Australia's biggest energy project: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $20 billion (total) addition of trains II and III at the Gorgon LNG Production facility on Barrow Island, Western Australia. A joint venture between CB&I (65%) and Kentz Corporation Limited (St. Helier, Jersey) (35%) is serving as contractor on the two projects, each with a value of $10 billion and a capacity of 5.2 million metric tonnes per year. When combined with the existing train, the facility's capacity will stand at 15.6 million metric tonnes per year. For more information, see Industrial Info's project reports on Train II and Train III.

Natural gas for the Gorgon LNG Production facility will be sourced from the Gorgon and Jansz-Io gas fields in the Carnarvon Basin. Last month, Chevron secured federal environmental approval for a fourth train, according to The Sydney Morning Herald, although a global glut in LNG production makes it unlikely that Chevron will take advantage of the approval anytime soon.

The six other highest-valued projects to involve CB&I are:

• $8 billion: NextDecade's LNG production and export terminal (Phase I) at Port Isabel in Brownsville, Texas
  For more information, see Industrial Info's project report.
• $8 billion: NextDecade's LNG production and export terminal (Phase II) at Port Isabel in Brownsville, Texas
  For more information, see Industrial Info's project report.
• $8 billion: NextDecade's LNG production and export terminal (Phase III) at Port Isabel in Brownsville, Texas
  For more information, see Industrial Info's project report.
• $8 billion: NextDecade's LNG production and export terminal (Phase IV) at Port Isabel in Brownsville, Texas
  For more information, see Industrial Info's project report.
• $7.5 billion: ConocoPhillips' LNG treatment plant in Prudhoe Bay, Alaska
  For more information, see Industrial Info's project report.
• $7 billion: Anadarko Petroleum Corporation's LNG Liquefaction Plant in Palma, Mozambique
  For more information, see Industrial Info's project report, and June 7, 2016, article - Fluor Corporation's 10 Top-Valued Projects Highlight EPC Giant's Role in Nuclear, Oil & Gas Markets.

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