Zacks_Analysts' Blog : CBI Wins Refinery Project - Analyst Blog

Chicago Bridge & Iron Co. (CBI) has been awarded a project valued in excess of US$1.4 billion by Refinería de Cartagena S.A. (REFICAR) for the engineering, procurement services and construction of a new refinery, with processing capacity of 165,000 barrels per day, adjacent to REFICAR's refinery in Cartagena, Colombia. CB&I's scope also includes revamping the existing 80,000 barrel per day refinery. The overall project will relieve regional refining constraints and will enable REFICAR to produce clean, ultra-low sulfur gasoline and diesel from heavy crude.

REFICAR has chosen CB&I to be the single contractor to engineer, procure, and construct this important project, which is key to enhancing Ecopetrol's position as a leading producer for the entire region. Refinería de Cartagena S.A. is owned by Ecopetrol, Colombia's national oil company.

CB&I will provide project management and the engineering, procurement services, fabrication and construction for the new refinery, including the following major components: Crude and Vacuum Distillation, Fluid Catalytic Cracker Naphtha Hydrotreater, Diesel Hydrotreater, Hydrocracker, Hydrogen Plant, Sulfur Plant, Delayed Coker, HF Alkylation, C4 Isomerization, Power Generation and Offsites and Utilities.

In October, the company was awarded a contract in excess of US$100 million by UGI LNG, Inc. to engineer, procure and construct the expansion of the Temple LNG peak shaving facility near Reading, Pennsylvania. CB&I's work scope includes the addition of a new 50,000 cubic meter liquefied natural gas storage tank and related processing facilities designed to provide 150 million cubic feet of natural gas per day during peak demand periods. The Temple LNG expansion will connect directly into the Texas Eastern pipeline to provide gas supplies for the Mid-Atlantic and northeast markets.

Chicago Bridge & Iron Company N.V. provides engineering, procurement, and construction (EPC) solutions, as well as process technologies for the energy infrastructure projects. It primarily focuses on projects related to oil and gas companies. CB&I operates approximately 80 locations around the world. The company was founded in 1889 and is based in The Hague, the Netherlands . Its major competitor is Matrix Service Co. (MTRX).