Netherlands-based energy infrastructure company CB&I (NYSE:CBI) -- the company formerly known as Chicago Bridge & Iron -- announced Thursday that it has purchased the E-Gas Technology business of Phillips 66 (NYSE:PSX) for an undisclosed sum.
E-Gas is described as a "solids gasification technology [used] to convert coal or petroleum coke (petcoke) into syngas, which can be used for power generation or further converted to substitute natural gas, hydrogen and downstream methanol-related chemicals production." It is thus sometimes more colloquially known as "coal gasification."
Announcing the acquisition Wednesday, CB&I Technology operating group president Daniel McCarthy said that the purchase of E-Gas marks CB&I's "entry into the syngas value chain," and furthers the company's ability to provide solutions for "integrated power generation."
Investors were less enthused. Shares of CB&I traded down 1.7% Thursday, closing at $57.39.
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