NEW YORK (TheStreet) -- Shares of Chicago Bridge & Iron (CBI) were gaining 6.7% to $54.36 Friday following a report that Anadarko Petroleum (APC) is preparing to choose a construction team led by the Netherlands-based company for a liquefied natural gas plant in East Africa.
The potential plant in Mozambique could cost as much as $15 billion, according to Bloomberg. Chicago Bridge & Iron will reportedly work with Anadarko Petroleum to start project planning with the Mozambique government.
Anadarko said it will make a final investment decision on whether it will continue working on the project by the end of 2015.
The Area 1 prospect off the shore of Mozambique could hold as much as 75 tillion cubic feet of natural gas, according to Anadarko.
About 3.2 million shares of Chicago Bridge & Iron were traded by 12:06 p.m. Friday following the report, above the company's average trading volume of about 2.1 million shares a day.
TheStreet Ratings team rates CHICAGO BRIDGE & IRON CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHICAGO BRIDGE & IRON CO (CBI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."