CB&I, Phillips 66 make a deal on technology asset

The Woodlands-based CB&I (NYSE: CBI) entered into an agreement with Phillips 66 (NYSE: PSX) to acquire the company’s E-Gas technology business.

The E-Gas solids gasification technology is a process to convert coal or petroleum coke into syngas, which can be used for power generation or further converted to substitute natural gas, hydrogen and downstream methanol-related chemicals production.

“We look forward to adding the E-Gas technology to our portfolio, which will mark our entry into the syngas value chain,” said Daniel McCarthy, group president of CB&I’s Technology operating group in a statement. “It also will bring added synergy to our delayed coking technology offering for integrated power generation, and other options to the refining and power industries.”

Phillips has been involved with other recent deals, some of which would help increase its North American crude delivery.

The agreements included a three-year deal with a subsidiary of Houston-based Enbridge Energy Partners LP (NYSE: EEP), Enbridge Rail in North Dakota, to deliver up to 40,000 barrels per day of crude oil to Phillips 66 refineries on the West and East coasts; a five-year agreement with Targa Resources Partners LP (NYSE: NGLS) in Houston to ramp up delivery of up to 30,000 bpd to Phillips’ Ferndale, Wash., refinery; and a deal with Magellan Midstream Partners LP (NYSE: MMP) in Tulsa, Okla., to begin delivering about 20,000 bpd of crude from the Mississippian Lime shale play to Phillips’ Ponca City, Okla., facility.

source:bizjournals.com