Chicago Bridge & Iron Company N.V. (NYSE:CBI) revealed yesterday that it secured a deal with PT Chandra Asri Petrochemical Tbk (CAP) to provide materials to be used in the refurbishment of its cracked heaters in the naphtha cracker plant located in Cilegon, Indonesia.
The refurbishment is expected to help boost CAP’s production capacity for ethylene from 860 kilo tons per annum to 900 kilo tons per annum. This will allow CAP to satisfy the growing demand for petrochemical products in Indonesia. CB&I had previously offered the basic and detailed engineering as well as the naphtha cracker revamp project.
“This award builds upon our long relationship with CAP, the largest integrated petrochemical producer in Indonesia. CAP’s naphtha cracker has been in service for more than 20 years using CB&I’s industry-leading ethylene technology and pyrolysis heaters,” stated Luke V. Scorsone, the executive VP CB&I’s Fabrication Services operating group.
A few days before the announcement of the material supply contract with CAP, CB&I announced that it had secured an engineering, construction and procurement contract with Venture Global LNG. The contract involves two liquefied natural gas (LNG) tanks for Venture Global’s export facility in Southwest Louisiana. The contract is reportedly worth about $200 million.
Scorsone stated that CB&I has a strong record of successful LNG projects all over the world. He further added that his company is a low-risk and cost-effective solution for Venture Global’s Calcasieu Pass facility. Bob Pender, the chief executive officer of Venture Global LNG stated that his company was happy to strike a deal with one of the most well-known LNG contractors in the world.
The contract between the two firms is expected to facilitate the production of 10 million tons of LNG per annum. The facility will take advantage of a liquefaction system made up of 18 mid-scale modular trains that are powered by electric motors to reach the highest levels of efficiency and reliability. CB&I is expected to offer two single-containment LNG storage tanks as part of the agreement.
CB&I stock closed the latest trading session on Monday at $17.36 after a 3.36 percent drop compared to the value of the stock during the previous close.