Out Fox The $treet

The recent announcement that the Federal Energy Regulatory Commission (FERC) approved the Cameron LNG export project is big news for Sempra Energy ( NYSE: SRE     ) , but investors shouldn't get too excited just yet. The project is the second such LNG export facility to get approved, and the media suggests that the approval process was recently expedited to ship natural gas to Europe, and specifically Ukraine. The gas may never reach that country, though. In addition, the energy department recently changed the approval process to expedite decision-making procedures on LNG exports. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

According to a Chicago Bridge & Iron (NYSE: CBI ) presentation, the LNG project capital expenditures over the next two years will reach over $70 billion. The spending will reach a plateau in 2015 at over $45 billion and max out around $50 billion in 2017. Not bad for a market that topped out around $30 billion in 2012 and plunged this year. Probably not surprising, but a main beneficiary will be more » Disclosure: No positions mentioned. Please review the disclaimer page for more info. 

Small-Cap Insight As the global economy struggles along especially in emerging markets, the domestic engineering firms have seen revenues and profits stagnate this year. Ironically, an unlikely source is now contributing to huge growth expectations over the next couple of years. The shale gas revolution in North America is pushing LNG export projects, and ammonia and ethylene plants back to the US where chemical construction projects had dried up for decades. In the case of KBR, Inc ( KBR ) , analysts expect dramatic earnings increases in out years while the stock still trades at a below market multiple. The company is off to a good start with FEED work on a couple of LNG export projects in British Columbia and the recent announcement of a $600M ammonia project in Louisiana. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Considering that oil has traded in the $80s range for months now, it shouldn't be that surprising that OPEC would revive projects shut down in 2008-2009. Apparently ever project is now moving forward though that wasn't conveyed by Foster Wheeler (FWLT) and other energy engineering firms in their Q4 reports. Maybe its a sign that we'll see some awards in the next 6 months. Today OPEC announced that some 150 projects are now moving forward to increase annual production by 12M barrels by 2030. Of those projects, some 35 were canceled/delayed and have now been restarted (other reports suggested that 135 projects were delayed). Either way the E&C firms should see higher order rates in the near future if true. Another big issue during the crisis was financing and I'd expect with oil maintaining at these levels that will soon disappear as an issue as well. Members of Opec, the oil exporters’ group, have revived the oil projects they put on hold when oil prices collapsed t...