Helping Refiners Upgrade Their Facilities to Process Heavy ... - CB&I

Interview with Dan McCarthy
Helping Refiners Upgrade Their
Facilities to Process Heavy Crude
Special Feature
Bottom of the Barrel
Spotlight on Technology
Hydrocracking
Market Watch
Nuclear
Issue 9, October 2008

OCTOBER 2008
On the cover:
Crude and vacuum unit
expansion in El Dorado,
Kansas.
Produced by
CB&I
Editor
Maribeth Weakland
CB&I
One CB&I Plaza
2103 Research Forest Drive
The Woodlands, TX 77380
Tel: +1 832 513 1754
Email: mweakland@CBI.com
Editorial Advisory Panel
Jan Sieving
Bruce Steimle
Barbara Weber
Design
Amy Laurenzo
Regular Features
3 WELCOME TO CB&I WORLD
Message from Phil Asherman
4 SAFETY MINUTE
18 PROJECT UPDATES
19 NEW AWARDS
Special Feature
6 Bottom of the Barrel
8 Bonus Interview with
Dan McCarthy
Spotlight on
Technology
10 Hydrocracking
Market Watch
16 Nuclear
World Focus:
Current Projects
12 NORTH AMERICA
Refinery in El Dorado, Kansas
13 ASIA PACIFIC & AUSTRALIA
Ethylene Cracker Complex in
Singapore
14 EUROPE
Buzzard Enhancement
15 MIDDLE EAST
ULSD Refinery in Saudi Arabia
www.CBI.com
technology | engineering | procurement | construc tion
This document is intended for general information purposes only and does not in any way constitute an offer to provide specific services. Some services may not be available
in certain countries or political subdivisions thereof. All the quotations in this document have been reproduced with the kind permission of our customers.
©
Copyright 2008 by Chicago Bridge & Iron Company. All rights reserved. Printed in USA. CW08-08
2

WELCOME TO CB&I WORLD
I am pleased to welcome you to the latest edition of CB&I World. In this
publication, you will find information about some of our new and ongoing
projects, as well as our technologies and capabilities.
As you look through this issue, you will notice that we have made a few
enhancements to the publication. One new section we have added is called
“Safety Minute” (pages 4-5). In keeping with our emphasis on safety, we start
every meeting at CB&I with a safety moment. For CB&I World, we will build
upon these safety moments by sharing safety tips, as well as other safety
initiatives we are undertaking.
Philip K. Asherman
President and Chief Executive Officer
We also have added a new section called “Market Watch” that highlights
a particular market in which CB&I is active. In this issue, for example, we
feature the nuclear market. Today’s nuclear business will have a long
development cycle, but we expect it will speed up over the next two years
as new projects continue to be announced. You can read more about the
nuclear market and our recently-awarded contract from Westinghouse on
pages 16 and 17.
One other new feature is “Spotlight on Technology.” As a result of last
year’s acquisition of Lummus, we offer our clients a portfolio of technology
solutions in both the refinery and petrochemical industries. In each issue,
we will highlight a different technology. On page 10 of this issue, you can
learn about one of Lummus Technology’s hydrocracking technologies,
ISOCRACKING.
Our Special Feature in this issue focuses on bottom of the barrel processing,
highlighting capabilities we offer to help refiners process today’s heavier
crudes. As a part of the Special Feature, we have included an interview with
Dan McCarthy, Executive Vice President of Lummus Technology, which was
recently published in World Energy magazine. Our Special Feature starts on
page 6.
Along with our new features, we have included updates on several of our
key projects throughout the world, and we have provided a quick look at
new projects recently awarded. I hope you enjoy this issue.
3

SAFETY MINUTE: HSE UPDATE
Awards
The Safety Council of East Texas held its annual Safety Awards Banquet on
April 24, 2008. At the event, CB&I received two awards. Each of CB&I’s two
Tyler Shops received an award for “Three Years Worked—Zero Lost Workday
Cases” and recognition as finalists for the “Safety Training Excellence
Award.”
CB&I was recognized by Phoenix Park Gas Processors Limited (PPGPL) in
Trinidad for achieving 50,000 work-hours with zero safety incidents. The
recognition comes as an acknowledgement and serves as an example that
CB&I’s core belief of Zero Incidents is an attainable goal.
UK: CB&I was awarded the Royal Society for
the Prevention of Accidents (RoSPA) Gold
Medal Award for the third year in a row. This
recognition is bestowed on companies that
demonstrate an ongoing commitment to
occupational health and safety.
Dammam: In Dammam, Superintendent Mariano M. Sarmiento
receives his safety achievement award for 1,600,000 work hours
without a recordable incident.
Venezuela: Puerto Ordaz, Venezuela Shop celebrated 300,000 work-hours without a recordable incident.
4

Saudi Arabia:
Safety achievement
award for 1.6 million
work-hours without
a recordable incident.
Saudi Arabia:
Safety award for
2 million work-hours
without a lost-time
incident.
Venezuela:
Award for 100,000
work-hours without a
lost-time incident.
SAFETY TIPS:
Travel
Taking extra safety precautions is especially
important when traveling because
unfamiliar territory can increase the likelihood
of hazardous situations. Follow
these tips to ensure a safe trip:
• Never list your home address on
your luggage tags.
• Keep your hotel door locked at all
times, and do not open the door
unless you know the person who is
knocking.
• Do not carry large amounts of cash.
• Before your trip, make two copies of
your passport and leave one at home
with a close friend or relative.
• Keep your passport separate from
other travel documents.
• Know local emergency phone
numbers.
• Familiarize yourself with your rental
car before driving off the lot (adjust
mirrors, make sure you know how to
turn on the windshield wipers, etc).
• Pack a first aid kit.
2008 Path Forward
CB&I has restructured our global HSSE Management System to be BS8800, ISO 18000, and ISO
14000 compliant. This restructuring to meet internationally-recognized standards allows for more
consistent and effective implementation of best practices that go beyond regulatory compliance.
More importantly, this restructuring allows CB&I to better protect our people, the environment, and
achieve our Zero Incidents goal on a global basis.
5

SPECIAL FEATURE: Bottom of the Barrel
Increasing demand for light transportation fuels (gasoline, jet, and diesel) worldwide and the
decline of the heavy fuel market has led many refiners to upgrade their facilities to process
heavy crude.
The high price of oil and increasing global demand for refined products has resulted in
attractive refining margins for those refiners processing heavy crudes. Many refiners are
upgrading existing refining facilities, focusing primarily on the ability to process these heavier
crudes by adding heavy oil conversion processes such as ebullated-bed hydrocrackers,
delayed cokers, resid FCC units, or visbreakers.
Heavy oil conversion upgrades residue to lighter, higher valued products, and enables the
refiner to process some quantity of heavy, high sulfur, lower priced crude. The technology
selection is generally based on a number of factors specific to each refiner and project,
including, but not limited to: return on investment, the specific product slate desired, refinery
location, refinery configuration, feed and product pricing, and type of crudes available.
CB&I is able to assist refiners in their project evaluation and implementation by providing
process planning, technology, and engineering, procurement, fabrication, and construction
(EPFC) solutions with our proprietary heavy oil conversion processes: delayed coking, resid
FCC, LC-FINING ebullated-bed hydrocracking, and Shell Soaker Visbreaking. We have also
developed a modular design for a typical two-drum coker that consists of 76 truckable
modules.
Vertical Plate Coke Drums
Unlike conventional pressure-tight vessels that are
constructed of plates arranged horizontally, CB&I uses a
patented Vertical Plate Coke Drum TM Technology to build
vessels with up to 50 feet of shell length without a girth
seam. As a result, there are no circumferential seams in the
critical area of the vessel. Vertical Plate Technology solves
the problem that many refineries face of vessels that bulge
and crack at horizontal seams, at a price comparable to
traditional drum installations. Vertical Plate Coke Drums
provide superior durability, which leads to a longer
operating life and lower maintenance costs.
CB&I has…
• Executed more than 60 projects involving coke drum
fabrication and erection
• Employed Vertical Plate Technology in 16 coke drums
currently in service
• Fabricated and erected more than 100 coke drums over
the past 4 decades
6

Delayed Coking
Delayed coking uses thermal cracking to convert
inexpensive petroleum residue into higher value distillate
products and coke, without the production of fuel oil. The
general goal of delayed coking is to maximize distillate
yield while minimizing coke production.
Our proprietary delayed coking technology is one of the
most cost-effective routes for converting/upgrading heavy
residual stocks to lighter distillate products and coke.
The process can handle a variety of feedstocks, such as
petroleum-derived resids, cracked materials (pyrolysis tar
and cycle oils), and liquid feedstocks derived from coal.
Resid Fluid Catalytic Cracking (RFCC)
RFCC uses catalytic cracking to convert residual feedstocks
into lighter, higher value products. The product slate includes
light olefins such as propylene and butylenes, gasoline, and
distillates.
Our proprietary RFCC technology is a commercially proven
state-of-the-art catalytic cracking process that can convert a
wide range of virgin and pre-processed residue feedstocks.
The RFCC process also works well in combination with other
heavy oil conversion processes such as delayed coking and
visbreaking.
Ebullated-bed Hydrocracking
The LC-FINING® ebullated-bed hydrocracking process offered
through Chevron Lummus Global (CLG), a joint venture of
Lummus Technology and Chevron-affiliated companies, features
high yields, high removal of contaminants, and low investment.
It has been used for desulfurization, demetallization, Conradson
carbon reduction, and hydroprocessing of atmospheric and
vacuum resids. Feedstocks processed include the heaviest highmetals,
high-sulfur vacuum resids. Commercial designs and unit
operations range from desulfurization at minimum conversion
for production of high quality fuel oils, to nearly complete
conversion of residue into low sulfur distillate products. Residual
product can be used as fuel oil, blended into synthetic crude,
or as feedstock to a coker, a visbreaker, a gasifier, or a solvent
deasphalter.
Visbreaking
The Shell Soaker Visbreaking process, jointly licensed
by Shell and CB&I, is one of the lowest cost conversion
process options. It reduces heavy fuel oil product – such as
atmospheric and vacuum resids and solvent deasphalter
pitch – by mildly cracking the resid to reduce its viscosity and
produce some distillates. (With vacuum resid feed, typically
about 20% is converted to distillate and lighter products).
Lower viscosity fuel oil requires less cutter stock to meet
fuel oil specifications, providing refiners with the means to
conserve valuable cutter stock while still producing high
quality, stable fuel oil. Combined with fuel savings derived
from the technology,
project payouts of one to
two years are possible.
Photo: Shell Canada’s
LC-FINING residual hydroconversion unit in Alberta, Canada
7

SPECIAL FEATURE: Bottom of the Barrel
Helping Refiners Upgrade Their
Facilities to Process Heavy Crude
World Energy Interviews Dan McCarthy,
Executive Vice President, Lummus Technology, a CB&I Company
CB&I combines proven process technology with global capabilities in engineering,
procurement and construction (EPC) to deliver comprehensive solutions to customers
in the energy and natural resource industries. With more than 70 proprietary licensed
technologies and 1,500 patents and patent applications, CB&I is uniquely positioned
to take projects from conceptual design through technology licensing, engineering,
construction and final commissioning. Drawing upon the global expertise and local
knowledge of approximately 18,000 employees in more than 80 locations, CB&I safely
and reliably executes projects worldwide.
World Energy: CB&I recently acquired Lummus
Technology. What are some of the benefits of this
combination?
McCarthy: Over the past decade, CB&I has been extending
its capabilities across the hydrocarbon industry. By
adding Lummus Technology to its offerings, CB&I has
expanded its reach across the entire project life cycle,
adding process technologies at the front end, expanded
EPC capabilities in the middle and technical services at
the back end.
From the Lummus perspective, we are pleased to be
part of the CB&I organization. The acquisition offers
many benefits to our customers, such as the ability to
deliver projects faster through modular fabrication. This
is becoming increasingly valuable as the price of oil rises.
The faster we complete projects, the sooner our clients
can begin earning profits. This is especially important in
today’s volatile markets. Building process modules in a
controlled shop environment gives us more control over
quality and schedule, and it allows us to support projects
all over the world, regardless of climate or conditions.
World Energy: Where do you think the hydrocarbon
market is heading?
McCarthy: At present, the main focus in hydrocarbons is
the shift toward processing heavy crude. Generally speaking,
the market has two distinct segments: upstream and
downstream. For the upstream segment, investment opportunities
in Alberta and Venezuela remain very strong,
and we expect that additional projects will be developed
in Russia, the Middle East and Mexico (pending the outcome
of the political debate now in progress).
For the downstream users, we expect continued growth
in projects that modify existing refineries to handle lowercost
crude oils – both onsite and support facilities – as
well as the investment in additional conversion facilities
to make higher yields of lighter, cleaner products.
Maximizing the refiner’s heavy oil conversion is the key
to improving downstream users’ economics.
World Energy: What other market drivers are influencing
refiners’ decisions to process heavy crude?
McCarthy: Primarily economic factors drive these decisions.
For example, since 2004 the spread between heavy
crude and West Texas Intermediate (WTI) has roughly
doubled, giving refiners even more reason to invest in
heavy oil processing equipment. Refiners that employ
heavy oil upgrading technology are able to reduce the
daily crude oil cost for a 300,000-barrel-per-day refinery
by $2-$6 million.
World Energy: How does Lummus Technology assist
customers in addressing the need to process heavy
crude?
McCarthy: We are able to assist clients in planning refinery
options for converting to low-cost crudes using both
sophisticated linear programs based on Lummus Technology
data and CB&I’s capital project experience. Our
software can predict yields and operating conditions for
a wide variety of feedstocks and product requirements.
World Energy: What kind of experience does Lummus
Technology have with regard to heavy crude refineries?
McCarthy: In the major energy centers of Kuwait, Russia
and Canada, almost every refinery project we currently
8

have under way is based on processing heavy, cheaper,
sour crudes.
For example, through our Chevron Lummus Global
(CLG) joint venture, we provide licensed heavy-oil
technology to most of the oil sands units in both
Canadian and U.S. refineries. We have designed more
than 100 hydroprocessing plants worldwide, with
catalyst systems that give refiners maximum flexibility
to respond to changes in market conditions.
World Energy: What are some of the challenges of
working with heavy crudes?
McCarthy: Today we are dealing with a greater variety
of crudes. Bottom-of-the-barrel processing applies not
only to heavy oil but also to oil that has a high level of
impurities. Providing a wide selection of solutions is vital
in contending with different discounted crudes.
World Energy: What other capabilities does Lummus
Technology have regarding bottom-of-the-barrel
processing?
McCarthy: Lummus Technology licenses modern
heavy-oil coking technology to upgrade the bottomof-the-barrel
oil to light products. Our delayed coking
technology is the most frequently used technology for
converting heavy oils to distillate product. One commercial
example is a delayed coking unit in Canada licensed
by Lummus Technology, which will be the largest grassroots-delayed
coking unit in the world to upgrade oil
sands bitumen.
In addition to heavy-oil upgrading, CLG is well known for
its hydrocracking and base oil technologies, which are
based on its proprietary catalysts. We are also pleased
to combine Lummus technologies with CB&I’s strengths,
such as hydrogen generation and sulfur recovery. We
feel we can provide a complete offering of technology
and EPC solutions for our clients.
World Energy: What sets your delayed coking
technology apart from others in the industry?
McCarthy: Our delayed coking technology is cost-effective
and maximizes distillate yield. We have accumulated
data from more than 60 commercial installations to
continually update our designs, adjusting to meet more
rigorous environmental and safety requirements.
On the EPC side, we now have CB&I’s patented vertical
plate coke drum design. By reducing the number and
orientation of weld seams in the more severe zones
of the coke drum, this design reduces the effects of
drum deformation
and extends the
life of the drum.
T h i s s o l u t i o n
provides refiners
w i t h r e d u c e d
maintenance and
ownership costs
at a price that is
comparable to
traditional drum
installations.
World Energy:
What are you doing
to position for the
future?
McCarthy: The need to capitalize on the best technologies
and to constantly improve these technologies is
critical across the oil and gas industry today. At Lummus,
we are working internally and with our alliance
partners to enhance our technologies and produce
new solutions for our clients. We have research and development
centers that focus on finding new solutions,
and we use numerous pilot plants for developing and
testing technologies.
Offering a wide range of solutions allows us to work in
locations all over the world. This also gives us flexibility
for the future since we are able to modify our offerings
for different types of discounted crudes.
World Energy: Do you have any final remarks?
McCarthy: As light oil becomes more and more scarce,
it is imperative that refiners equip their facilities to process
opportunity crudes. These types of projects are
being developed all over the world, and being able to
process heavy crudes gives refiners more options.
CB&I has a full range of product offerings for refiners,
including licensed technologies, engineering,
procurement, fabrication, construction and technical
services. CB&I also has experience in nearly every
part of the world and is able to capitalize on local
resources. Looking forward, we will continue to expand
our refining capabilities to meet the needs of all our
customers globally.
Source: This article appeared originally in World Energy, Volume 11, Number
1, 2008. Reprinted with permission from World Energy, all rights and copyrights
reserved.
9

SPOTLIGHT ON TECHNOLOGY: Hydrocracking
Many large refineries in North America have
both a hydrocracker and a fluid catalytic cracking
unit (FCCU) to produce a full range of motor
vehicle fuels by processing fuel oil feedstock. The
FCCU process maximizes gasoline, whereas the
hydrocracker process can be designed to produce
naphtha, jet fuel or diesel, depending on refinery
demand. In parts of the world where diesel is
the predominant fuel, hydrocrackers alone are
favored because of their ability to produce highquality
diesel fuel. Diesel demand worldwide is
growing at a much faster rate than gasoline and
most new refinery grassroots projects include
hydrocracking in the configuration.
CLG offers the ISOCRACKING process in several
different configurations, customized to meet
specific client needs. Single-stage hydrocracking,
the simplest configuration, is used to produce
superior feedstocks for an FCCU, lube oils or an
ethylene plant. Two-stage recycle hydrocracking
enables refiners to handle a wider range of difficult feeds, completely converting the feed to
high valued products and resulting in the maximum yield of middle distillates. CLG has also
commercially demonstrated other innovative process schemes.
CLG supplies a full range of hydrocracking catalysts that are customized for the processing
objectives of the refiner. These proprietary ICR® catalysts can produce maximum naphtha,
maximum jet, plus diesel or high quality feed for base lube oil stocks.
Since 2000, CLG has licensed 46 hydrocracking units worldwide, with a combined capacity of
1.9 million barrels per day based on the use of CLG’s ICR proprietary catalyst.
Process Flow Diagram
Make-up
Hydrogen
Fresh Feed
First-stage
Reactor
Recycle
Gas
Fractionator
Separator
Light Ends to
Recovery Unit
Light
Naphtha
Heavy
Naphtha
Middle
Distillate
Secondstage
Reactor
Recycle
Gas
Separator
First-stage
Product
Second-stage Product
10

HYDROCRACKING PROJECT:
BAPCO Low Sulfur Diesel Production Project
CLG provided its ISOCRACKING technology for the Bahrain Petroleum Company B.S.C. (BAPCO) at
their Bahrain refinery. The refinery originally started up in 1936 and has undergone many expansion
and modernization projects over the years. Its current capacity is 265,000 barrels per day. The
new hydrocracker started up in 2007.
The hydrocracker was part of a Low Sulfur Diesel Production (LSDP) project that has given BAPCO
the capability to produce about 100,000 barrels per day of ultra-low sulfur diesel. In addition to
providing the technology, CLG carried out the basic engineering design work for the 60,000 barrel
per day, two-stage hydrocracker, one of the largest single train hydrocrackers in the world.
The two-stage hydrocracker is producing the highest quality products at the maximum liquid
yield, meeting all current and expected future specifications. Since start-up, there have been no unplanned
shutdowns related to hydrocracker mechanical issues. The hydrocracker is providing the
refinery with more diesel and less fuel oil and has improved the quality of feedstock to the FCCU.
11

NORTH AMERICA
Crude and Vacuum Expansion
El Dorado, Kansas
The crude and vacuum unit expansion that CB&I provided the mechanical
design for and built at the Frontier El Dorado Refinery will enable Frontier
to increase crude charge rates, achieve higher yields of gasoline and
distillates, and run higher rates of heavy crude oil. CB&I’s scope included
furnishing a new preflash column, fired heater, vacuum system, cooling
tower, Power Distribution Center (PDC) building, and other pumps and
exchangers. CB&I’s portion of this project was completed in March 2008.
CB&I’s crew at the El Dorado, Kansas site faced many challenges, including
windy conditions that prohibited the use of cranes and threatened to delay
the project. Once the weather calmed down, the crew was able to make up
for lost time and finish the project on schedule.
In 2006, CB&I completed the design and construction
of a 24,000 barrels per day ultra-low
sulfur diesel hydrotreater and a 35,000,000
standard cubic feet per day hydrogen generation
plant at the El Dorado refinery. This project was
a part of the refinery’s clean fuels program.
But wind wasn’t the only challenge on the El Dorado Crude and Vacuum
Expansion project. At the site where the vacuum unit was field assembled
and constructed, there were challenges in every direction. To the East there
was an existing unit, to the West there was a storage tank, to the North
there was a change in elevation and a pipeline crossing, and to the South
there was a pipe rack. The coordination of equipment for the 200-foot-tall
vacuum column was very carefully planned to avoid these obstacles.
Mike Coyne
CB&I is also nearing completion of an upgrade of
the refinery’s delayed coker, which will enable
Frontier to modernize to the latest delayed coking
coke drum technology.
12

ASIA PACIFIC & AUSTRALIA
Ethylene Cracker Complex (ECC)
Singapore
CB&I is currently constructing a world-scale ethylene
cracker complex in Singapore. The new cracker is
located on reclaimed land between Pulau Ular and
Pulau Busing, five miles offshore Singapore. The liquid
cracker is a conventional design but with additional
capabilities for handling a wider range of feedstocks.
The technology has been delivered by Lummus
Technology.
The ethylene cracker is the heart of the Shell Eastern
Petrochemical Complex (SEPC) in Singapore. The
complex will serve as a crucial provider of raw materials
for Asia’s growing chemical markets. The project
represents the Shell Group’s largest ever chemical
investment in the country.
The main products that will be produced by the cracker
complex are:
Ethylene – 800,000 tonnes per annum, increasing
the capacity in Singapore by around 40%.
Propylene – 450,000 tonnes per annum
Benzene – 230,000 tonnes per annum
Butadiene – 155,000 tonnes per annum
Shell selected CB&I Lummus for the initial project
studies, which began in early 2003, through the startup
in early 2010. The Basic Design and Engineering
Package (BDEP) for the project was completed mid-
2006. Before the final investment decision by Shell in
July 2006, CB&I teamed up with Toyo Engineering to
execute the detailed engineering, procurement and
construction management scope of the project.
With more than 2.5 million work-hours spent, the
detailed engineering is getting close to completion.
Procurement is progressing well, with more than 95%
of purchase orders having been
placed. Deliveries of equipment,
structural steel and piping materials
are well on track.
The project is currently occupying
five piping prefabrication shops
on mainland Singapore to produce
the pipe spools for the project.
The concrete elements for the
cooling water towers are also being
produced on the mainland.
The construction activities for the
project are on track for start-up
of the process units in the first
quarter 2010. Since the first piles
in March 2007, significant progress
h a s b e e n m a d e . Te m p o r a r y
facilities, including offices, workers’
dormitory and infrastructure, have
been constructed; civil works have
accelerated, with civil foundation
and underground construction near
completion. Pipe rack and equipment erection are in
full swing.
The current on-site work force stands at more than
3,000 people of which 1,200 come in daily by ferry from
the mainland. Almost 9 million work-hours have been
recorded on the project.
“We are constructing this project
in the midst of a busy time in
Singapore, which brings with it
challenges in securing resources and
equipment. We are happy to have
committed contracts to a large cross
section of more than 50 companies
in Singapore, which we consider
to be among the best construction
and service companies here. On
the whole, we have been pleased
with the quality of the work that is
being delivered, and will continue
to focus on safety and quality. We
look forward to tackling challenges
ahead of us together.”
- Statement from SEPC, expressing their
overall satisfaction with the project.
Neil Hallett
13

EUROPE
Buzzard Enhancement
North Sea, UK
After more than five years of working on the Buzzard project, the CB&I
engineering team was preparing to de-man and close out the contract
in October 2007 after a successful start-up in January. As CB&I’s portion
of the project was winding down, the CB&I work force was 120 when we
were awarded an additional contract by Nexen Petroleum U.K. Limited
for the detailed design and procurement of a fourth platform at the
Buzzard location as part of this new Buzzard Enhancement Project.
In August 2002, CB&I was awarded
a contract for Concept Definition
and Project Specification (CDPS)
for the Buzzard installation. CB&I
was responsible for the engineering
design of three topsides, including
the production, utilities and wellhead
decks. The team spent about a
year developing the concept and
preparing the project specification
before beginning the detailed design
phase. There were more than 700
CB&I employees at the peak of the
project, working a total of 2.1 million
hours.
Design for the new platform commenced in November 2007, and
all the major purchase orders have now been placed. CB&I recently
commenced issuing the structural fabrication drawings, and Nexen
U.K. will soon begin construction. Detailed design is on schedule and
is expected to be complete during the second quarter of 2009. This
fourth platform, which will be bridge-linked to the existing complex, is
expected to come on stream in 2010.
The environmental conditions and water depths of the North Sea
present unique challenges in designing a platform for this area. CB&I’s
experience with the original Buzzard project and expertise on other
projects position us well to meet the challenges ahead.
There are currently more than 200 engineers and designers working on
the enhancement project and almost 200,000 work-hours have been
recorded. CB&I has worked a total of 2.3 million hours on the Buzzard
related projects in the past six years and appreciates the confidence
exhibited by Nexen in awarding these contracts.
Charlie Harding
DID YOU KNOW?
The Buzzard reservoir is one of the
largest North Sea crude oil projects in
more than a decade. It lies between
2,375 meters and 2,800 meters below
the surface.
14

MIDDLE EAST
Ultra-Low Sulfur Diesel Facility
Al-Jubail, Saudi Arabia
In December 2006, CB&I Lummus was awarded a contract by Saudi Aramco
Shell Refinery Company (SASREF) for the basic design and engineering
package (BDEP) for an ultra-low sulfur diesel facility at their Al-Jubail, Saudi
Arabia refinery. Once this project is complete, the refinery will be the first in
Saudi Arabia to be upgraded to produce ultra-low sulfur diesel to meet the
stringent 2009 diesel fuel specifications for the European and Asia Pacific
markets.
In one step, the refinery will reduce the sulfur content of its diesel fuel to 10
parts per million. At the signing ceremony, SASREF president Mr. Muhammed
Omair emphasized the strategic nature of the investment, for SASREF and for
Saudi Arabia in general to meet the demand for low sulfur fuels.
This project consists of the installation of a new hydrodesulfurizer (HDS)
unit, and extensive revamp of the existing HDS unit, the addition of amine
treating facilities, modification of two crude units, utility system expansions,
upgrades to the electrical infrastructure, and off-site piping modifications
for the separation of new low sulfur fuel from other grades.
The facilities are scheduled to be started up during the third quarter of
2009. Construction activities for site preparation started in October 2007,
and the existing facility was shut down during the second quarter 2008 for
the integration of new facilities, which included approximately 150 tie-ins.
Imre Csoti
Equipment and materials have been sourced on a truly global basis,
with supplies from The Netherlands, United Kingdom, Italy, France,
Germany, Austria, India, Japan, China, United States, Canada, South
Africa, and Saudi Arabia.
A major initiative in the project is the promotion and
implementation of a “Flawless Start Up Initiative.” This is a Shell
Global Solutions process that is applied to the engineering,
procurement and construction phases of the plant, paying special
attention to lessons learned from previous start up experiences.
15

MARKET WATCH: Nuclear
Today, we are at the front end of a “Nuclear Renaissance”
that is taking place all over the world. According
to the International Energy Agency, worldwide electricity
consumption is expected to increase by 94 percent
between 2005 and 2030, and this growing demand for
electricity is one of the market drivers of the nuclear industry.
Another market driver is the worldwide concern
about global warming. Nuclear plants do not emit any
greenhouse gases and nuclear power is third behind
wind and geothermal for the least amount of carbon
dioxide emissions. Nuclear power is also viewed by
many as a possible long-term energy solution because
of the ability to recycle spent fuel.
There are also financial incentives associated with nuclear
power. Nuclear power has one of the lowest production
costs of all major sources of electricity, second
only to hydroelectric power. The fuel cost for nuclear
power is also more stable because the price of uranium
is more consistent than oil and gas prices.
Strong competition in the electricity markets will soon
force energy companies all over the world to consider
nuclear power because of the low fuel and operating
and maintenance costs. Some utility companies have
already begun placing orders for long-lead items in
preparation. The United States currently has the largest
share of the nuclear market, but China and Russia are
expected to surpass the U.S. in this market by 2030.
World Nuclear Reactors
The nuclear reactor market is robust, as shown in the
table below:
Operating Planned Proposed Total
China 11 24 76 111
Russia 31 10 25 66
United States 104 12 20 136
Japan 55 11 1 67
India 17 10 9 36
South Korea 20 5 0 25
Rest of World 201 21 87 309
World 439 93 218 750
Source: World Nuclear Association, May 2008
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EXPERIENCE
CB&I’s nuclear design and construction
experience includes:
• 130 containment vessels worldwide
• 75% of all operating nuclear power plant
containments in the U.S.
• 41 nuclear reactor vessels
• More than 10 million work-hours in
operating nuclear plants
• Major torus modifications
• Storage tanks
• Steam generator replacements
• Recirculation piping replacements
• Biological shield walls
• Pool liners
PROJECT AWARD
In April 2007, CB&I was awarded a contract by Westinghouse
Electric Company for the first two containment vessels as
part of Westinghouse’s US AP1000 New Plant Initiatives.
The initial contract is for the project planning, design and
engineering work for these vessels, with additional engineering,
procurement, fabrication, and construction contracts
expected to follow.
CERTIFICATION
In February 2008, CB&I obtained nuclear recertification
from the American Society of Mechanical Engineers
(ASME), covering:
N: Nuclear vessels, pumps, valves, piping
systems, storage tanks, core support
structures, concrete containments, and
transport packaging
NA: Field installation and shop assembly
NPT: Fabrication, with or without design
responsibility, for nuclear appurtenances
and supports
NS: Nuclear Supports
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PROJECT UPDATES
Fujian
On April 26, 2008, the LNG terminal at Xiu Yu port, Fujian
received its first shipment of LNG. The 929-foot-long
LNG carrier Seri Alam arrived from Idku LNG port, Egypt
and began the process of cooling down the first tank.
The shipment of 141,897 cubic meters of super-chilled
fuel was unloaded on May 2, 2008. The Xiu Yu terminal
is owned by CNOOC Fujian LNG Co. Ltd.
Another milestone was achieved just one day before
the LNG shipment arrived. On April 25, 2008, the project
crew was recognized for 7.5 million work-hours at the
site without a lost-time incident.
CB&I is responsible for the engineering, procurement
and construction of the LNG storage tanks and terminal.
Commercial operation commenced on June 21, 2008.
Peru
Work continues on the LNG liquefaction plant in Pampa
Melchorita, Peru. The CB&I project team is fully mobilized
and civil works are ahead of schedule. CB&I’s procurement
group has placed all major purchase orders,
and delivery of bulk materials is under way. Engineering
is more than 75 percent complete, and the overall project
is nearing 45 percent completion.
The current work force is approximately 1,400, and almost
4.5 million work-hours have been logged to date.
The recordable incident rate on this project is 0.22, and
there have been no lost-time accidents.
EXHIBITIONS AND CONFERENCES
Please visit CB&I at these upcoming exhibitions and conferences:
Date Exhibition/Conference Location
October 5-8 NPRA Q&A and Technology Forum Orlando, FL USA
October 14-16
Central/Eastern European Refining & Petrochemicals Conference Warsaw, Poland
October 19-22 WEFTEC 08 Chicago, IL USA
November 17-19 ERTC Annual Meeting Vienna, Austria
December 2-4 POWER-GEN International Orlando, FL USA
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NEW AWARDS
The following projects have been awarded recently to CB&I:
North America
Nuclear. A contract by Westinghouse
Electric Company for the first two
containment vessels as part of
Westinghouse’s US AP1000 New Plant
Initiatives. The initial contract is for
project planning, design and engineering
work, with additional engineering,
procurement, fabrication,
and construction contracts expected
to follow.
Refinery Expansion. A contract for an
expansion project at a U.S. refinery.
CB&I’s work scope includes engineering,
procurement and modular fabrication
of a sulfur recovery and hydrogen
complex.
Hydrogen Plant. A contract for a largescale
hydrogen plant at a California refinery.
CB&I will perform the engineering,
procurement and fabrication of a
100 million standard cubic feet per day
plant to help the refinery meet new
clean fuel standards. The project will
use CB&I’s proprietary HYFORMING TM
box furnace technology, and will be
completed in 2010.
Peak Shaving. A contract for an LNG
peak shaving project on Vancouver
Island, British Columbia. This contract
was awarded to Horton CBI, a subsidiary
of CB&I, for the engineering, procurement
and construction of a 434,000 barrel
(1.5 billion cubic feet gas equivalent)
LNG storage tank, the liquefaction and
regasification systems and all related
plant structures and systems. The facility
will be owned and operated by Terasen
Gas (Vancouver Island) Inc., a subsidiary
of Terasen Inc.
Storage Tanks. A contract awarded by
Suncor Energy Services Inc. to design and
build storage tanks at Suncor’s Firebag
in-situ oil sands operations, located approximately
75 kilometers northeast of
Fort McMurray, Alberta, Canada. CB&I’s
scope of work includes the engineering,
procurement, fabrication, and construction
of numerous tanks. The project is
scheduled to be completed in 2009.
Europe Africa & Middle East
Fertilizer Plant Expansion. A contract
to engineer, fabricate and construct
two 50,000 metric ton capacity ammonia
storage tanks as part of the QAFCO
V fertilizer plant expansion in Qatar.
The project was awarded to the consortium
of Snamprogetti and Hyundai
Engineering & Construction Company
in December.
Water Storage. A contract awarded to
several large water storage tanks to be
built at an independent water and power
plant project in the Middle East. The
project is expected to be completed in
early 2010.
Heaters. A contract awarded to Lummus
Technology for nine cracking heaters at
a Middle East petrochemical complex.
The contract, which is scheduled to be
complete in late 2009, is part of an ethylene
plant with a capacity of 1,165 thousand
metric tons per annum. In addition
to this award, Lummus Technology is
also providing the process technology
and basic engineering under a separate
contract.
Central & South America
Asia Pacific & Austrailia
Petroleum Storage. A contract awarded by Petroterminal
De Panama, S.A. to engineer, fabricate and construct numerous
petroleum storage tanks associated with the Trans-
Panama Pipeline Expansion Project. The tanks will be built at
two sites: Chiriqui Grande on the Atlantic coast and Puerto
Armuelles on the Pacific coast. CB&I, which also built the
original tanks in the late 1970s, is scheduled to complete its
scope of the expansion project in the first quarter of 2010.
Refinery Expansion. A contract valued in excess of US$130
million by Rio Tinto Alcan for the design and construction of
storage tanks and associated works for the expansion of the
Yarwun Alumina Refinery in Gladstone, Queensland, Australia.
CB&I’s scope of work includes the engineering, fabrication,
preassembly, and installation of numerous tanks and associated
mechanical equipment, structural steel, piping, and insulation.
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Engineering Solutions...
Delivering Results
CB&I combines proven process technology with global capabilities in
engineering, procurement and construction to deliver comprehensive
solutions to customers in the energy and natural resource industries.
With more than 70 proprietary licensed technologies and 1,500
patents and patent applications, CB&I is uniquely positioned to take
projects from conceptual design, through technology licensing,
engineering and construction and final commissioning. Drawing
upon the global expertise and local knowledge of approximately
18,000 employees in more than 80 locations, CB&I safely and reliably
executes projects worldwide.
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