Lummus Technology, a business unit of Chicago Bridge & Iron Company N.V.(CBI: 20.40 -0.07 -0.34%), has been awarded a licensing and engineering contract by Chinese company Ning Bo Heyuan Chemical Company Ltd. The companies did not disclose the terms of the deal.
Lummus Technology is a leading licensor of proprietary process technologies to the hydrocarbon industry. Lummus was acquired by Chicago Bridge & Iron Company in 2007 from ABB Ltd. (ABB: 18.19 -0.20 -1.09%) and is well known globally as a provider of single-source solutions to customers.
Lummus will provide its services to Ning Bo’s DMTO methanol-to-olefins recovery unit, and an Olefins Conversion Technology (OCT) unit.
Methanol-to-olefins technology is used to convert crude methanol to olefins, a combination of ethylene and propylene used in the production of a variety of products, including plastics, fibers and rubber in the petrochemical industry. This technology is an economical method of conversion and ethylene plant expansion in comparison with the conventional methods.
In addition to 600,000 metric tonnes per annum (MTA) of ethylene and propylene, the DMTO unit is expected to produce some lower value n-butylenes, which together with ethylene will be used to produce 90,000 MTA of propylene in the OCT unit.
Chicago Bridge & Iron Company has been working on a number of projects worldwide. Presently, the company is working as an engineering, procurement and construction contractor for Peru LNG liquefaction plant of Hunt Oil Company. This is the first LNG liquefaction plant in South America. Recently, the first cargo of the LNG was produced from the plant.
The company’s improving outlook and strong fundamentals strengthen our belief that the stock will continue to outperform over the near term. A major competitor of Chicago Bridge & Iron Company is Matrix Service Co. (MTRX: 9.55 -0.30 -3.05%).
Chicago Bridge & Iron Company N.V. is a worldwide provider of fully-integrated specialty engineering, procurement and construction services and related licensed processes, primarily used by energy markets for large-scale storage and refining of liquids and gases. The company segments its operations into four broad market sectors: Liquefied Natural Gas (LNG), Energy Processes, Steel Plate Structures, and Lummus Technologies.