He adds that if the U.S. petrochemical construction market "revitalizes on inexpensive gas, that will benefit shareholders."

Lasse Petterson, CB&I chief operating officer, told Wall St. analysts on July 24 that "global market trends are positive, in all our seven primary end markets."

He noted that "the [liquefied natural gas] trade is projected to continue growing at a rate twice as fast as natural gas production, but the LNG portion of gas supply forecasted to increase approximately 20% over the next two decades."

Petterson added that the growth will provide new opportunities for engineer-procure-construction opportunities, "and we have positioned CB&I well for [these] by winning and executing six LNG liquefaction [front-end engineering and design] studies the last year."

Russia's LNG Megaproject

CB&I completed last quarter the FEED contract for the estimated $30-billion Sabetta liquefied natural gas production, storage and transportation complex located on the Yamal Peninsula in Siberia for Yamal LNG, an entity that is 80% owned by Russian independent gas producer Novatek and 20% by French gas company Total.

The region is one of the world’s largest natural gas-producing areas. The Arctic complex is envisioned as a new approach for LNG exports to China and other Asian countries.

"It was recently reported in the Russian business press, that the Russian government would invest in a private-public partnership for the dredging and marine facilities at Sabetta, which is key to the Yamal LNG project," Petterson said. The firm says its FEED work will provide a base for detailed engineering, procurement and construction (EPC), as well as cost estimates and a project schedule to allow Yamal LNG to secure further investment.

The work was done with CBI global partners Chiyoda Corp., the Japanese engineering and construction firm and Italian oil and gas contractor Saipem S.p.A. and a Russian design institute.

"Given the government’s significant involvement, we are optimistic the project takes off given financing had been a key issue," says Jamie Cook, lead engineering and construction sector analyst for Credit Suisse. She added that CBI remains bullish on LNG prospects in the U.S., Australia, western Canada and East Africa.

Petterson also forecast growth in shale gas-driven petrochemical facility construction in the U.S. and Russia, and in offshore oil and gas projects in Brazil, Malaysia and the North Sea.

Pipe Fabrication Market Could Surge

Bernhard told analysts on July 10 that opportunities for Shaw in pipe fabrication over the next one to two years "are going to be very, very active, probably likely at an all-time high," particularly in petrochemical and nuclear work. He added that "the overseas market is really booming on our new shops in the UAE and Brazil."

With delays and execution issues at its nuclear plant sites, Shaw has struggled with profitability in recent quarters. But Bernhard said margins were likely to improve, particularly in its fabrication business. CBI is involved in containment vessel fabrication at the Vogtle and V.C. Summer plant sites.