Current Projects - CB&I

Welcome to CB&I World
Message from Phil Asherman
Special Feature
CB&I and Lummus Join Forces
World Focus
Current Projects
Issue 8, February 2008

In this Issue
Welcome to CB&I World
I am pleased to welcome you to the latest edition of CB&I World offering insight
into an array of our new and ongoing projects.
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
Welcome
3 WELCOME TO CB&I WORLD
Message from Phil Asherman
Special Features
4 CB&I and Lummus Join Forces to
Build the Future
14 Meeting the Demands of the
Growing Liquefaction Market
World Focus:
Current Projects
7 EUROPE
LNG Import Terminal in
Milford Haven, Wales
8 CENTRAL & SOUTH AMERICA
LNG Liquefaction Project in Peru
10 AFRICA
Gas Processing Plant in Angola
11 AUSTRALIA
LPG Storage Tanks in Victoria,
Australia
12 NORTH AMERICA
Golden Pass LNG Facility in Texas
News
Hydrogen Plant in Corpus Christi,
Texas
16 NEWS & CONTRACTS
18 SAFETY NEWS
Marketing News
19 New Corporate Brochure
2008 Tradeshows
Hot Off the Press
Philip K. Asherman
President and
Chief Executive Officer
It has been a very exciting time for the company. As I am sure you’re all aware by
now, in August 2007, CB&I entered into a definitive agreement to purchase the
Lummus Global business from ABB. The acquisition officially closed on Nov. 16,
2007, and efforts are now under way to complete the integration of both entities.
Lummus is a leading provider of process technologies used in the oil, gas and
petrochemical industries, as well as a global EPC contractor. The company is widely
recognized for its expertise in ethylene and olefins technologies, having licensed
approximately 40 percent of all such projects worldwide over the last decade. It also
holds a market-leading position in hydrocracking projects. With 3,000 employees
worldwide, Lummus has 70 proprietary technologies, 1,500 patents and patent
applications, and an established global presence in Europe, the Middle East, Africa,
China, Russia and the United States.
The combination of CB&I’s EPC experience with Lummus’ technology creates
a very strategic advantage for us, as we are now an integrated provider with
comprehensive capabilities in the global hydrocarbon sector. The new entity will be
able to provide clients with services across the entire hydrocarbon value chain, from
proprietary technology to engineering, procurement, fabrication, construction and
final commissioning.
Best of all, the businesses are complementary with virtually no overlap. Moving
forward, we will be able to capitalize on one another’s strengths and better respond
to the growing demand for energy infrastructure around the world.
To familiarize you with Lummus and its capabilities, we have provided a
comprehensive article on the organization on page 4. It provides an overview of
Lummus, which celebrated its centennial in 2007, as well its technologies, current
projects and business divisions. The remainder of the issue profiles some of CB&I’s
current projects and capabilities.
One of the adjustments we have made to accommodate the growing demand
for energy infrastructure throughout the world is the promotion of Jim Bollweg to
Executive Vice President, Project Operations. Bollweg will share the responsibility
for project operations around the world with John Redmon, providing a global
balance of management.
www.CBI.com
technology | engineering | procurement | construc tion
We encourage you to visit our Web site at www.cbi.com for more information
about the combined company. We look forward to offering our clients world class
process technologies and the superior EPC project solutions they’ve come to expect
from CB&I. Enjoy the issue.
This document is intended for general information purposes only and does not in any way constitute 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.
Any enquiries about content from this publication should be directed to the Bruce Steimle (email: bsteimle@CBI.com)
2
©
Copyright 2008 by Chicago Bridge & Iron Company. All rights reserved. Printed in USA. CW02-08
3

CB&I and Lummus Join Forces to Build the Future
November 16, 2007 – CB&I completed the acquisition of the
Lummus Global business from ABB.
“This acquisition is transformational for CB&I. Lummus, which
brings world-class process technology and a complementary
EPC business, is a great fit and a welcome addition to our
company,” said Philip K. Asherman, President and CEO.
“The acquisition broadens our range of capabilities and
our geographic base, and the addition of more than 3,000
talented and experienced employees gives us a tremendous
strategic advantage in responding to the growing demand
for energy infrastructure around the globe.”
Lummus Technology
Lummus Technology is a leader in the process industry, with
a portfolio of more than 70 process technologies in refining,
petrochemicals and gas processing, well known for reliability
and integrity. In addition to its technology portfolio, Lummus
Technology brings to CB&I a network of 30-plus alliances and
partnerships with major refining, chemical and catalyst manufacturers,
and four research and development centers. Headquartered
in Bloomfield, New Jersey, USA, Lummus Technology
has additional engineering centers in Houston, Texas; Gurgaon,
India; and Beijing, China, all dedicated to providing advanced
engineering design packages, and guaranteeing reliable and
efficient plant performance. The Lummus Heat Transfer group
provides heater transfer equipment and related engineering
and licensing services.
Petrochemicals/Chemicals/Polymers
Lummus Technology is best known for its ethylene technology,
with about 40 percent of worldwide capacity based on its process
for pyrolysis and olefins recovery. The SRT pyrolysis heater
offered by Lummus Heat Transfer is the standard for ethylene
manufacture.
With a staff of about 100 in Bloomfield, The Hague, and Gurgaon,
the Lummus Heat Transfer group provides the complete
design and supply of these proprietary heaters and other
chemical and refinery heaters and heat exchangers.
Lummus Technology also offers several processes to manufacture
polymer-grade propylene, as well as the Novolen®
gas phase polypropylene technology capable of producing a
full range of products. Novolen Technology GmbH, a wholly
owned subsidiary, markets and licenses the polypropylene
process technology, catalysts (including metallocene) and all
product applications.
A diverse portfolio of advanced petrochemical and chemical
technologies running along product lines such as styrenics,
light hydrocarbon dehydrogenation and other assorted specialty
chemicals is offered by Lummus Technology.
Refining
Lummus Technology, with its joint venture companies Chevron
Lummus Global (CLG) and CDTECH, offers a fully integrated
package of advanced refining process technologies to address
the needs of today’s refiners, providing solutions for bottoms
upgrading, hydroprocessing, reformulated fuels and high octane
blending components.
Chevron Lummus Global (CLG) is a 50/50, self-funded joint
venture between Lummus Technology and Chevron. Chevron
manages the R&D and catalyst business, while Lummus handles
sales and engineering. Some of the key technology assets
owned by the joint venture include hydrocracking, gas oil and
distillate hydrotreating, and residual upgrading. Between Lummus
and Chevron, the organization shares 115 U.S. patents.
CDTECH is a 50/50 partnership between Lummus Technology
and Chemical Research and Licensing. Most of CDTECH’s processes,
including gasoline desulfurization, selective hydrogenation,
benzene reduction, and several other emerging technologies,
are based on the principle of catalytic distillation.
Gas Processing
Randall Gas Technologies has remained a strong brand in the
market of gas processing, having a long history in providing
cryogenic solutions to recover NGLs. In 2002, the group shifted
to being a technology provider and has since also begun to
focus on technology for CO2 and N2 recovery, as well as a patented
LNG process ready for commercialization.
Research and Development
The technology business is anchored by four R&D centers in
the U.S. Scientists, engineers, technicians, and support staff located
in Lummus Technology’s R&D centers are dedicated to
developing new technologies and improving existing technologies.
The CLG center, which is located in Richmond, California,
USA, specializes in hydroprocessing and catalyst development
and is responsible for developing 14 new catalysts and five process
concepts. The CDTECH center, based in Pasadena, Texas, is
responsible for catalytic distillation processes, as well as catalysts
and catalyst assembly. The Novolen center in Cincinnati,
Ohio, performs polypropylene catalyst research and product
development, applications and testing. Finally, the Technology
Development Center in Bloomfield is responsible for olefins,
styrene, and refining process/catalyst development.
CB&I Lummus
In the engineering, procurement, and construction side of the
business, CB&I Lummus is experienced in designing and building
both upstream and downstream facilities, including onshore/offshore
production and processing facilities, refineries,
and petrochemical facilities. CB&I Lummus specializes in building
ethylene and styrene facilities in the petrochemicals industry,
hydrocracking and delayed coking facilities in the refining
industry, and in various types of gas processing facilities.
CB&I Lummus EPC operations are dispersed throughout the
globe, with the office in The Hague serving as its lead operations
center. Projects are carried out by regional execution
centers located in Wiesbaden, Germany; Brno, Czech Republic;
Singapore; and Cairo, Egypt. Additional support is provided
by local offices in Moscow, Russia and Al-Khobar, Saudi Arabia.
Lummus has an extensive global project portfolio. Some of its
current projects include:
n An ethylene cracker complex for Shell Eastern Petroleum
Ltd. at its plant in Palau Ular, Singapore. Lummus’s scope
includes all EPC, commissioning and start-up responsibilities,
and the project is being executed as a joint venture with
Toyo Engineering Company.
n Lummus has engineering, procurement and project
management responsibilities for the Kirishi Refinery
Hydrocracker Complex in Russia. Facilities include vacuum
distillation, visbreaker, hydrogen production, hydrogen
recovery, wastewater treatment, sour water stripper, amine
treatment/recovery and sulfur recovery.
n Grupa LOTOS S.A. has contracted Lummus for the
engineering, procurement and construction of a new gasoil
desulfurization plant in Gdansk, Poland. The aggressive
schedule calls for start-up within 31 months of the award.
n The Petroleum Company of Trinidad and Tobago,
Ltd. has contracted Lummus and Techint E&C
for the engineering, procurement and
construction of an alkylation unit and a sulfuric
acid regeneration unit at its Pointe-a-Pierre
refinery in Trinidad.
n Lummus is providing engineering, procurement,
and construction management services for a
hydrocracker/hydrotreater unit at INA Industrija’s
refinery in Rijeka, Croatia. The unit is based on
Chevron Lummus Global technology.
4 5

The Combined Company
There are several reasons why the combination of Lummus and
CB&I results in a much stronger company with strong future
growth potential. First, the combination of CB&I and Lummus
creates a unique competitive advantage in the marketplace.
Complementary platforms provide clients with integrated offerings
at each stage of the project life cycle – from proprietary
technology to engineering, procurement, fabrication, construction
and final commissioning.
In addition to the strategic advantage the acquisition provides,
the limited overlap between CB&I and Lummus’ execution centers
gives the combined company an expanded global footprint,
which will enable the company to provide high-value
execution capabilities worldwide.
Finally, both companies have built up very strong reputations
over the last 100 years. CB&I and Lummus both have reputations
as safe, high-quality companies with expertise in EPC and
technology. Joining these two companies will enable each entity
to capitalize on the other’s strengths and better respond
to the growing demand for energy infrastructure around the
world.
Moving forward, CB&I will pursue work by offering its clients
services that are best suited for their specific situation. For
more information on our Lummus business, or to find out how
we can help you with your next project, go to www.cbi.com.
EUROPE
The Combined Company
LNG & Refrigerated
Systems
Energy Processes
(Oil/Gas/Power)
Steel
Structures
Lummus
Technology
LNG Regasification
Terminals
LNG Liquefaction
Plants
LNG Export
Terminals
LNG Peak Shaving
Facilities
Low Temperature &
Cryogenic Systems
Offshore Structures
Refinery Process Units
Petrochemical Process
Units
Gas Processing Facilities
Power Facilities
Pipelines
Hydrogen/Synthesis
Gas Plants
Sulfur Removal &
Recovery
Aboveground
Storage Tanks
Elevated Storage
Tanks
Hortonsphere®
Pressure Vessels
Specialty
Structures
Petrochemical
Technology
Refining
Technology
Gas Processing
Technology
Heat Transfer
Equipment
Performance
Catalysts
LNG Import Terminal in Milford Haven, Wales
Work continues on the South Hook LNG Import Terminal in
Wales, UK – the largest liquefied natural gas (LNG) terminal
in Europe and potentially the largest LNG receiving terminal
in the world. CB&I has been responsible for the engineering,
procurement and construction of the facility, which is designed
to process 15.6 million metric tons per annum base
load LNG supply from the Qatargas II project.
The balance of the plant area is nearing 75% completion, and
continues to be the critical path for the overall Phase I project,
particularly in the mechanical and piping work. To speed up the
on-site progress, CB&I has put in place a number of initiatives,
including a night shift for its piping and mechanical subcontractors.
Completion of the balance of plant scope, including
commissioning, is expected in summer 2008.
As of December 2007, more than 90% of Phase I of the project
is finished, with on-site construction of Phase I nearing 85%
completion. In addition, all of the roofs have been raised on
the five full containment 155,000 cubic meter LNG storage
tanks included in the scope, and all associated civil works are
substantially complete. Hydrostatic testing of the first tank is
scheduled to be conducted in early 2008.
Another milestone reached has been the completion of all
preassembled units and piperacks for the jetty, which were
delivered during the summer of 2007 and have now been installed.
Thus far, the utility piping and LNG lines have also been
installed, and the five off-loading arms have been placed on
berth 1, as well as the fire monitor tower for both berths. Presently,
the crew is concentrating on welding out and testing the
installed pipework.
The current on-site work force stands at more than 2,000
people. More than 7.5 million work-hours have been recorded
at the project site, with an additional 2 million work-hours expected
by the end of the project. First ship/first gas is forecast
for August 2008, at which time, the South Hook facility will provide
a significant new source of natural gas for the UK’s national
transmission network.
Marc Sculthorpe
6 7

LNG Liquefaction Project in Peru
CB&I is currently designing and building a state-of-theart
natural gas liquefaction plant and marine terminal in
South America. The liquefaction plant is located at Pampa
Melchorita, approximately 170 kilometers south of Lima
at an elevation of 140 meters above sea level. CB&I’s work
scope includes the entire liquefaction plant, with a designed
production capacity of 4.45 million tons per year of LNG. The
project encompasses treatment of the inlet gas, liquefaction,
two LNG tanks, ship loading facilities, power generation,
plant utilities, and related ancillary buildings and systems.
The owner of the facility, Peru LNG S.R.L., is a consortium
comprised of Hunt Oil Company of the United States, SK
Corporation of Korea, Repsol YPF of Spain and Marubeni of
Japan. The Peru LNG Export Project was the only base load
liquefaction project approved in 2006. It represents not only
the largest industrial project ever to be undertaken in Peru, but
it is also South America’s first base load LNG export facility. In
addition, it is the first liquefaction EPC project for CB&I and the
first LNG export plant for a Hunt-led partnership.
CENTRAL & SOUTH AMERICA
During its construction and operation, the Peru LNG Export
Project provides an opportunity for sustained economic
growth in Peru. By monetizing Peruvian natural gas, thus
providing the country with a sustainable export commodity,
the project will position Peru to play a leading role in the
export of LNG from South America and will enable the country
to help meet the increasing global demand for natural gas. In
the meantime, CB&I is utilizing local Peruvian personnel for the
execution of this project, which not only provides employment
opportunities, but also helps to further cultivate a skilled work
force in the country.
Following the massive earthquake in August 2007, work
resumed at the Peru LNG site immediately. As of January
2008, CB&I remains on target schedule. Engineering is more
than 60% complete with AFC drawings for civil, structural and
piping isometrics well under way.
Procurement is progressing well, with more than 90% of
purchase orders placed and vendors’ manufacturing facilities
meeting our requested delivery dates. Deliveries of structural
steel and piping materials have commenced, with the steel
required for the two LNG tanks delivered in late 2007 and early
2008. Major equipment deliveries will begin in March 2008.
Construction is on schedule. The foundations for both LNG
tanks are complete and CB&I has commenced erection of
the tank steel. Foundations for the main process unit began
in late 2007 and are currently ahead of schedule. To date,
more than 45,000 cubic meters of concrete have been placed.
Structural steel erection began in December 2007 and in
January, CB&I completed the first production pipe weld in the
on-site fabrication shop. CB&I will commence work on all other
disciplines and in all other areas of the facility in 2008.
The current on-site work force stands at more than 1,800
people. Almost 3 million work-hours have been recorded on
the project, with a recordable incident rate of 0.08 and no
environmental incidents.
Peter Rano
Peru Earthquake Relief
On Aug. 15, 2007, a powerful earthquake shook Peru,
killing hundreds of people and leaving thousands
injured. The quake struck approximately 14.5 miles WSW
of CB&I’s plant site, which did not sustain any damage;
however, the nearby towns of Chincha and Pisco suffered
extensively. Following the quake, CB&I sent personnel
and equipment to Chincha where they cleared rubble
from streets near the hospital. In Pisco they cleared
around a collapsed hotel. Employees of CB&I erected
two huge tents in the soccer stadium in Chincha for
several hundred people who had lost their homes. The
company and its subcontractors provided water trucks,
food, medical supplies and bedding. For the first week
after the event, CB&I supplied the only equipment for
rescue and relief work in town. During the second week,
two other companies joined the efforts. The government
took over and CB&I’s last day to assist was Sept. 15.
8
9

AFRICA
Gas Processing Plant in Angola
AUSTRALIA
LPG Storage Tanks in Victoria, Australia
Because of a strong focus on safety, Cabinda Gulf Oil
Company (CABGOC), a wholly-owned subsidiary of Chevron
Corporation, and CB&I recently announced that the Cabinda
Gas Project has surpassed 2 million work-hours without a
lost time accident, including more than a million work-hours
in the field. This exemplary safety record can be attributed
to CB&I’s project safety culture and training that have been
implemented on the job.
In February 2006, CABGOC awarded a lump-sum contract to
CB&I for a gas plant and other associated facilities at the Malongo
Oil Terminal, located 10 miles north of Cabinda City in Cabinda
Province, Angola. CB&I is responsible for the engineering,
procurement, fabrication, transportation, construction and
commissioning of the facility, which includes gas/oil separation,
vapor compression, refrigeration and liquids fractionation to
recover natural gas liquids. A significant portion of the project
was modularized at CB&I’s shop in Tyler, Texas, to minimize
field construction work. The modules were shipped from Port
of Houston to Angola, and were landed on the beach in the
Malongo Terminal in November 2007. Approximately half of
the modules are now installed on the permanent foundations.
Installation of the remaining modules, as well as mechanical
and electrical work to connect the modules, is ongoing.
A modular concept is advantageous because all of the
fabrication and assembly activities take place in a controlled
environment. As a result, factors such as inclement weather
have less of an impact on the overall project. In addition,
companies have a greater degree of control on the QA/QC
aspects of the project. Civil work can occur simultaneously with
shop fabrication and assembly, thereby reducing the overall
project delivery schedule. Off-site fabrication and construction
reduces the number of on-site safety risks.
Throughout this project the team has taken ownership for the
safety, quality and production, and is willing to try new, safer
methods to improve the overall job and schedule. For the last
tank, the team developed a new method for replacing the
foundations without jacking the tank, and also developed a
new monorail system and swing-stage design for insulation.
This tank was completed one month ahead of schedule and
under budget.
In 2001, CB&I was contracted by Esso to rehabilitate an LPG
storage tank originally built by CB&I 37 years before for the
storage of propane. The company’s scope of work for the
project included stripping all insulation off the tank; blasting
and painting; repairing the shell, roof, internal floor, piping,
valves, electrical and instruments; and re-insulating and
commissioning.
Since then, CB&I has been awarded six more tanks based
on the first tank’s performance. Because the project team
is dealing with tanks at least 33 years old and has to handle
such hazardous materials as lead, hydrogen sulfide, nitrogen
and various other substances, it is necessary to have a set of
comprehensive controls in place as well as a highly experienced
team that can look at new, innovative ideas to reduce the
schedule and make the job safer.
Rehabilitating the Tanks
Rehabilitation of the first tank commenced in 2002.
Because this was the first tank, there were many
unknowns regarding its condition. For instance, upon
removing the tank floor to repair a sub-floor damaged
by ice heave, it was found that the concrete ringbeam
was in a very degraded state due to freezing. To
remedy the situation, the team jacked up the entire
tank, removed the existing concrete foundation, and
re-poured and anchored in a new external concrete
ring beam.
On one tank, CB&I had to remove the existing roof
and internals and install a geodesic dome and an
aluminum internal floating roof. The main challenge
was finding a way to work safely on the roof, which
was in poor shape. In response to this issue, the
team developed a walkway bridge that pivoted
from the center column out to a specially designed
wind girder around the perimeter. CB&I developed a
large triangular spreader and stripped the roof in pie
sections. From there, the team used the next bund to
build the geodesic dome and lifted it into place using
a 300 ton crane.
The emphasis on safety as a top priority was instilled in all of
the Angolan workers, who make up 50 percent of the current
project crew. Many of these workers were trained at a school
established by CB&I in Cabinda City to provide training in
safety, welding and general construction. Further on-the-job
training in quality craftsmanship and safe work has become
an integral part of the success of the project. As CB&I moves
forward with this project, there will be a continued emphasis
on safety to ensure that the project is completed on time and
without incident.
Paul Mackzum
To date, the team has rehabilitated six tanks and is preparing
to begin work on the seventh unit. CB&I has been involved
with this project for more than six years and has recorded more
than 432,000 work-hours. The team will continue to implement
new methods to improve safety as the project progresses.
Paul Roberts
The latest tank to be rehabilitated has posed an entirely
new set of challenges due to it being twice the size
of the other tanks. Some of the ideas incorporated
to improve safety included the implementation of
a system to safely remove the foam-glass from the
roof of the tank. Fully self-contained under a vacuum
to prevent airborne fibers, this system chops the
foam-glass into small pieces and sucks them into
encapsulated skips on the ground. In addition, the
team came up with a new overhead safety line system
for working on the roof. The new design combines
the monorail/scaffold system around the top of the
tank, enabling simultaneous operations to proceed.
10 11

NORTH AMERICA
Golden Pass LNG Facility in Texas
Hydrogen Plant in Corpus Christi, Texas
CB&I is currently participating in one of the major energy
projects in North America, building a grass roots liquefied
natural gas (LNG) receiving terminal located near Sabine
Pass, Texas. CB&I has EPC responsibility for the terminal,
which will have an import capacity to process 15.6 million
tons per annum of LNG, which is equivalent to approximately
2 billion cubic feet per day of natural gas. The project
includes two ship unloading berths; five full-containment
LNG storage tanks, each with a capacity of 155,000 cubic
meters; a regasification and sendout system; and related
ancillary buildings and systems.
Work first commenced on this project in 2006. Since then,
there have been several important milestones achieved. One
of these accomplishments was the successful air raising of the
first two LNG tank roofs in 2007.
The roofs are 252 feet in diameter, and with the suspended
deck and installed fittings, weigh approximately 632 tons. An
additional 42.4 tons of movable material, including rolls of
fiberglass deck insulation, electrical panels and transformers,
monorail hoists, and tubular scaffolds, were precisely located
on the suspended decks to balance the roofs. Air raises for the
remaining tank roofs will take place in six-week increments.
In addition to being an important project milestone, the
roof air raises are important from a construction standpoint
because the majority of subsequent tank work is carried out
under the roof and is consequently weatherproof. This is
particularly beneficial at the Golden Pass site, where the crew
had to endure significant weather challenges in the first nine
months of 2007.
In spite of the inclement weather, the Golden Pass crew and
project team have made significant progress. Presently, the
overall project is at 35% completion, with more than 900 direct
and subcontracted employees on site. Safety has also remained
a top priority at Golden Pass. As of early February 2008, the
CB&I crew has recorded more than 2 million site work-hours
without a lost time accident.
Greg Maring & Chris John
CB&I recently completed work on a new 80 million standard
cubic feet per day hydrogen plant at the Valero Refinery in
Corpus Christi, Texas. The unit, which was designed and
fabricated by CB&I, supplies high-purity hydrogen for the
refinery’s ultra low sulfur diesel program.
For the process design, CB&I utilized steam methane reforming
technology, in which natural gas (primarily methane) and
steam are reformed into hydrogen and carbon dioxide (CO 2
).
A pressure swing adsorption (PSA) unit was incorporated to
separate the hydrogen from the CO 2
and other offgas impurities.
Due to the amount of heat required for the reforming reaction,
the reforming process is an inherent steam generator. As such,
the hydrogen, along with excess steam, is delivered to battery
limits as products, while the PSA offgas is utilized as fuel to the
reformer burners.
Detailed engineering was performed by CB&I personnel at its
Tyler, Texas office. In addition, weekly review meetings were
held with Valero throughout the course of the project, which
not only ensured the consistent and accurate exchange of
information, but also maintained good relations between the
Valero and CB&I teams.
CB&I’s scope of work also included fabrication responsibilities.
Approximately 200 tons of steel and nearly 15,000 feet of piping
were prefabricated in the Tyler shop, and shipped to site.
The steam methane reformer is a large four-row unit with
110 burners and more than 400 tons of steel. With broadside
dimensions of 73 feet in width and 93 feet in height, the
hurricane-strength wind design made the reformer foundation
and steel engineering quite challenging. Nonetheless, these
project components were carried out with great success.
Construction of the stick-built plant was in Valero’s scope.
For the construction phase of the project, CB&I supplied a
construction coordinator who earned high marks from Valero
for his help in the field and who remained at the site through
start-up at Valero’s request.
In addition, four welders from the Tyler shop traveled to the
project site to perform the highly specialized welding of the
reformer outlet pipe header. All of these welds were completed
in one week, and Valero was extremely satisfied with the
craftsmanship and professionalism of the team.
The entire project was completed in October 2007. Throughout
the project, safety was emphasized and supported at all levels.
CB&I recorded more than 96,000 work-hours for the project
with no lost time accidents or recordable injuries.
Will Tanksley
12 13

Special Features: CB&I Difference
World Energy interviews Philip Asherman, President and CEO of CB&I
World Energy: Tell us about CB&I’s history regarding the
liquefaction of natural gas.
Asherman: Our involvement in liquefaction dates back to 1965,
when we designed and built the world’s first liquefied natural
gas (LNG) peak shaving plant. These units are used to liquefy
and store natural gas for use during periods of peak demand.
We have also been highly involved in the mechanical erection
of liquefaction trains for baseload LNG export facilities. In 2004
we built an LNG train for a baseload plant in Australia, which
has an annual capacity of 4.2 million metric tons, and in 2005
we completed a liquefaction facility in Bonny Island, Nigeria,
which has a capacity of 4 million metric tons per year.
World Energy: How have CB&I’s capabilities expanded to
encompass the entire scope of the liquefaction facility
Asherman: CB&I has grown dramatically in the past few years,
and we have attracted a large number of experienced industry
leaders in the areas of liquefaction and gas monetization.
With the addition of their technical expertise to our existing
base of LNG know-how, we recently secured our first full
EPC liquefaction project in South America, where Peru LNG
is building a state-of-the-art natural gas liquefaction plant
and marine terminal at a site called Pampa Melchorita, 170
kilometers south of Lima.
Meeting the Demands of the Growing
Liquefaction Market
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 17,000 employees in more than 80 locations, CB&I safely and
reliably executes projects worldwide.
This project not only represents the largest industrial project
ever to be undertaken in Peru, but it is also South America’s
first baseload LNG export facility. In addition, it is the first
liquefaction project for CB&I in which we have full EPC
responsibility.
World Energy: Based on your company’s knowledge of the
market, what do you see for the future
Asherman: The future of the LNG market continues to be bright,
as more LNG import and export terminals are being built than
ever before. March and April 2007 were record months for the
importation of natural gas into the U.S. market, while Europe
continues to build terminals to ensure security of supply.
To support this demand, we are seeing the development of
liquefaction facilities in the Middle East, Africa, South America,
Asia and Australia. About a dozen liquefaction facilities are
being built right now and should be brought online in the next
few years. Many more facilities are currently being promoted,
and these projects will probably go into development once the
necessary resources are available.
In short, the natural gas market has gone from a regionally
focused industry to a global one. And with the current backlog
of demand for LNG, it should remain a highly active market for
years to come.
World Energy: Where is CB&I helping with the design and
construction of these LNG export facilities
Asherman: For now, our first plant for which we have full EPC
responsibility is Peru LNG, which, upon completion, will be
capable of producing approximately 4.5 million metric tons
of LNG annually. Currently, production is scheduled to start in
2010.
Elsewhere, we are back in Western Australia serving as the
mechanical contractor to build a new LNG train for Woodside
Energy’s North West Shelf Venture LNG Phase V Expansion
Project. Upon completion, the train will have a capacity of
4.2 million metric tons per year, which will expand the plant’s
current capacity to 16.3 million metric tons per year, making it
one of the single largest LNG complexes in the world.
In addition to these projects, we are in discussions with several
other developers to determine how we can help support their
liquefaction needs.
World Energy: Tell us more about the Peru LNG job. Are there
any unique features associated with this facility
Asherman: As the only baseload liquefaction project
sanctioned in 2006, Peru LNG has many interesting aspects.
One of the most intriguing is the location. Extensive studies
were performed along the coastline of Peru to identify an
appropriate location for the project. The Pampa Melchorita site
is environmentally sound and was deemed the best choice.
Gas reserves are developed on the eastern side of the Andes
Mountains and will be transported to the plant via pipelines
extending more than 400 kilometers. Because liquids are
removed from the gas upstream of the terminal, the liquefaction
train does not have to handle any other liquid products. In
terms of design, we are using proven processes, equipment
and technology. Our business model is such that we work with
established process licensors for large baseload facilities.
World Energy: How will the Peru LNG terminal affect the
current gas distribution infrastructure
Asherman: From a location standpoint, the Peru LNG export
terminal is strategically positioned to supply gas to the western
coast of North America. While Peru LNG will be shipping
supplies to terminals in Mexico and Canada, eventually it may
provide natural gas directly to California.
World Energy: What about the balance between new
liquefaction facilities and their regasification counterparts
Due to difficulties in siting new regasification terminals in
certain areas, will building more liquefaction plants eventually
create an imbalance
Asherman: Well, presently, there is a substantial shortage of
export capacity, so there’s room to grow on the supply side
for several years. The Peru LNG project will help the balance of
LNG supply and demand.
And while there are some difficulties in siting regasification
facilities in particular regions, new ones are still being built,
while existing ones are rapidly expanding their capacities. For
instance, the South Hook regasification facility that we are
building in Milford Haven, Wales, will be, upon completion, the
largest LNG terminal in Europe and will provide a significant
new source of natural gas for the United Kingdom’s national
transmission network. In China, the Fujian LNG regasification
facility, which is currently under construction, represents
the country’s first fully owned LNG import terminal and is
scheduled for commercial operation in 2008. And in the United
States, there’s the design and construction of the Golden Pass
LNG regasification facility near Sabine Pass, Texas. CB&I is
currently involved in each of these projects.
World Energy: Are there any trends that indicate liquefaction
facilities will be built using prefabricated modular units
Asherman: Very much so. In fact, the LNG train we are currently
erecting in Western Australia is being built using conventional
prefabricated modules, which has never been done before
for a liquefaction train. There are a total of 74 modules with
a combined weight of approximately 17,500 metric tons.
One of the main reasons behind using modular construction
is the remoteness of the site and the resultant difficulty in
securing construction labor. As LNG projects continue to be
sited in increasingly remote areas where space is limited and
skilled labor is in short supply, we will probably see the use of
modularization become more common in LNG projects.
World Energy: What are some of the other challenges facing
the liquefaction market, and how is CB&I planning to address
them
Asherman: As I mentioned before, there is currently a
production shortage due to the limited number of qualified
liquefaction EPC contractors. CB&I joining this elite club
represents a significant increase in the industry’s ability to meet
current growth. One of the biggest challenges for any of these
contractors is attracting qualified personnel and liquefaction
experts. Fortunately, CB&I is an employer of choice and has
successfully built and developed these resources to expand
the capacity of the industry.
World Energy: Any final comments
Asherman: Yes. Over the past few decades, CB&I has taken
the steps necessary to be able to meet nearly all the capital
project needs of the LNG value chain – from production
and liquefaction to regasification, storage and distribution.
However, we are not done yet. CB&I will continue to grow and
expand its capabilities so that wherever our LNG customers are
and whatever they need, we will have the resources to supply
them with projects that are second to none.
Source: This article appeared originally in World Energy, Volume 10,
Number 3, 2007. Reprinted with permission from World Energy, all rights
and copyrights reserved.
14 15

News & Contracts
CB&I Awarded Contract for Thailand Project
January 4, 2008 – CB&I announced that it has been awarded a
contract valued in excess of US$60 million by Star Petroleum
Refining Company Limited to build a new jet fuel processing
plant and related storage and shipping systems in Rayong
Province, Thailand.
CB&I’s scope of work includes the engineering, procurement,
fabrication and construction of a new Jet Merox plant to treat
and sweeten jet fuel with a capacity of 20,000 barrels per day.
Also included are associated process facilities, four 100,000
barrel jet fuel storage tanks, and pipeline sendout and marine
facilities.
CB&I also is contracted to build a crude oil and diesel storage
system, which includes a 160,000 barrel diesel storage tank, a
750,000 barrel crude oil storage tank and all of the associated
piping and mechanical work.
The full project is scheduled for completion by early 2009.
Star Petroleum Refining Company is a joint venture between
Chevron and PTT Public Company Limited.
CB&I Awarded Contract for Colombia Refinery
Expansion Project
November 28, 2007 – CB&I announced that it has been awarded
a contract by Refinería de Cartagena S.A. for a refinery expansion
project in Cartagena, Colombia.
CB&I will perform the engineering, procurement and construction
on the expansion project, including adding 14 new processing
units. The expansion is designed to increase processing
capacity at the integrated oil refinery from 80,000 barrels of
crude oil per day to a total capacity of 150,000 barrels per day.
The upgraded facility will produce ultra low sulfur gasoline and
diesel from a heavy crude oil slate.
The definition phase of CB&I’s contract is valued at approximately
US$80 million and includes engineering development
and procurement services for equipment and materials with
long lead times.
project builds on CB&I’s extensive history in Latin America and
capitalizes on our proven worldwide experience in refinery expansion
projects.”
Refinería de Cartagena S.A. is owned by Glencore International
AG (51%) and Ecopetrol, Colombia’s national oil company
(49%).
CB&I Awarded Contract for Buzzard Expansion
Project
November 27, 2007 – CB&I announced that it has been awarded
a contract, valued at approximately US$100 million, from
Nexen Petroleum U.K. Limited for the topsides detailed design
engineering and procurement services for the fourth platform
in the Buzzard field complex.
Buzzard is a major offshore field operated by Nexen Petroleum
U.K. Limited and is located in the U.K. Central North Sea, approximately
100 kilometers northeast of Aberdeen, Scotland.
CB&I was responsible for providing engineering design and
procurement services for the initial three platforms comprising
the Buzzard field installation between 2002 and 2007.
CB&I Awarded LNG Contract in Australia
October 31, 2007 – CB&I announced that it has been awarded
a contract valued in excess of US$373 million by Woodside
Burrup Pty. Ltd., a subsidiary of Woodside Energy Ltd., and sole
developer of the Pluto LNG Project.
The Pluto LNG Project, a liquefaction facility with forecasted
production of 4.3 million tonnes per annum, is located on the
Burrup Peninsula in Western Australia, approximately 20 kilometers
(12 miles) northwest of Karratha. The project is expected
to be completed in 2010.
CB&I’s initial scope of work includes the engineering, procurement,
construction and pre-commissioning of two 120,000
cubic meter full containment LNG storage tanks, three condensate
tanks and associated civil, piping, electrical and instrumentation
work.
CB&I Awarded Refinery Expansion Project
October 2, 2007 – CB&I announced that it has been selected
to participate in a major expansion project at a refinery in
Alabama. CB&I’s contract value is estimated in excess of US$160
million.
The full project is designed to double gasoline and diesel production,
while complying with new clean fuel regulations.
CB&I will provide detailed engineering, procurement and
modular fabrication for a new 15,000 barrel per day UOP CCR
Platforming unit, a 28 million standard cubic feet per day hydrogen
plant using CB&I’s proprietary Hyforming hydrogen
technology, associated utilities and offsite facilities for the expansion
project. CB&I expects completion of its project scope
in the first quarter of 2009.
CB&I Announces Three New Projects
September 26, 2007 – CB&I announced three new contracts
that will add approximately US$140 million to the company’s
backlog:
Refining Process Contracts: CB&I has been awarded two contracts
to provide sulfur recovery complexes at refineries in
California and Texas. The work scope of the first project includes
engineering, procurement and modular fabrication of
a 200 long tons per day (LTD) sulfur recovery unit and an associated
tail gas treating unit at a refinery in the San Francisco
Bay area. The award is valued in excess of US$50 million. The
second contract is for a similar project in Texas. The work scope
includes the engineering, procurement and modular fabrication
of a 225 LTD sulfur recovery unit and associated tail gas
treating unit. The award is valued in excess of US$50 million.
Middle East Petrochemical Storage Project: CB&I has also been
awarded a contract to design and build a storage tank for
the Borouge 2 petrochemical project expansion in Ruwais,
Abu Dhabi in the United Arab Emirates. The project owner is
Borouge, a joint venture between the Abu Dhabi National Oil
Company (ADNOC) and Borealis. The expansion project is designed
to increase Borouge’s polyolefins annual production
capacity to two million tonnes.
CB&I Relocates Houston Engineering Office
In response to the increased demand for engineering work
resulting from the company’s strong growth in new project
awards, CB&I recently relocated its Houston offices to a new
location. Located near the downtown Houston area, the new
office serves as CB&I’s largest engineering center in the United
States, with the capacity to accommodate more than 700 employees.
Originally, the Houston office housed CB&I’s gas processing
capabilities. Today, the office serves as a major project execution
center, with the ability to carry out larger, more complex
projects and their associated infrastructure. Along with engineering,
the office also has departments for estimating, project
controls, procurement, construction, project management and
more.
With these increased resources, the Houston office is already
helping CB&I deliver projects across all of its global markets.
According to Luke Scorsone, Group Vice President of USA
Operations, the Houston office is currently providing support
for such recently awarded projects as a refinery expansion in
Cartagena, Columbia, as well as a gas processing project for
Yemen LNG.
“We are pleased to be selected as the EPC contractor for this
major Colombian project which, when complete, is expected
to nearly double the refinery’s current output and help relieve
constrained regional refining capacity,” said Philip K. Asherman,
President and CEO. “We anticipate finalizing the full scope of
the project and beginning construction by year-end 2008. This
“We are pleased to have been selected for this project which
demonstrates Woodside’s ongoing confidence in our ability to
complete projects on schedule and on budget,” said Philip K.
Asherman, CB&I’s President and CEO. “This award builds on our
proven worldwide experience in the LNG industry.”
CB&I’s work scope includes the engineering, procurement, fabrication
and construction of a new low temperature storage
tank and all associated electrical, mechanical, instrumentation
and controls work. The award is valued in excess of US$40 million
and the project is expected to be completed in 2009.
16 17

Marketing News
Safety News
“At CB&I, protecting the environment and the health of our employees, customers, subcontractors and the public in the areas where we
work and live is a key component of our culture. Every employee across the organization is responsible for using safe work practices in
their job every day, and it is their commitment to do so that has helped us achieve a record of exemplary safety performance year after
year. As a company, we strive to do the right things for the right reasons, embracing all HSE regulations and educating our employees
through extensive and ongoing training programs. We developed our goal of zero incidents because anything short of that is unacceptable,
and we are all accountable for achieving that goal – every day on every job.”
Phil Asherman, President and CEO
New Corporate Brochure
CB&I has updated its corporate brochure to incorporate the
expanded capabilities resulting from the acquisition of Lummus
Global. The revised brochure showcases the company’s
technology and service offerings in four main segments: LNG
and Refrigerated Systems; Energy Processes (Oil/Gas/Power);
Steel Structures; and Lummus Technology.
The brochure also describes the total solutions package that
CB&I and Lummus together can now offer customers, which
comprises technology licensing and related catalysts; front end
engineering and design (FEED); engineering, procurement and
construction (EPC) services; commissioning; operator training;
and aftermarket support.
CB&I Honored by Safety Council of East Texas
The Safety Council of East Texas held its annual Safety Awards
Banquet on April 18, 2007. At the event, CB&I received three
awards: Two Years Worked with No OSHA Recordable Incidents,
Incident Rate Improvement, and the Safety Training Excellence
Award. State Representative Tommy Merritt sent a certificate
from the State of Texas House of Representatives, recognizing
CB&I’s commitment to safety excellence through training. The
criteria to qualify for the award were stringent and based on
federal OSHA injury reporting requirements, all of which were
met by CB&I. Don Medine, Area Safety Manager in CB&I’s Tyler,
Texas, office, accepted the award on the company’s behalf.
CB&I Vice President Speaks at ExxonMobil
Contractor Safety Forum
CB&I’s Vice President Global HSE Paul Oliver was invited to
speak at ExxonMobil Development Company’s 2007 Contractor
Safety Forum held in Houston, Texas. The purpose of the event
is to promote the sharing of experiences and ideas that will
allow organizations to systematically improve safety performance.
Oliver spoke about performance monitoring using the DBO2
system, offering demonstrations to educate the other attendees
on the various uses of the device. Some of the benefits
derived from using the DBO2 include instant feedback on safety
performance, much quicker reporting analysis, the ability
to check leading indicators, and instant availability anywhere
because the device is Internet-driven. “We can champion this
type of technology to improve safety in our companies,” Oliver
said.
CB&I in Australia Receives Esso Safety Excellence
Award
For its commitment to safe work practices and having an exemplary
safety record, CB&I was recently presented with the
Esso Safety Excellence Award for its work on rehabilitating several
LPG storage tanks (read more about this project on page
11). This award, which was presented by Esso Chairman Mark
Nolan, recognizes the commitment and professionalism that
CB&I and its contractors have dedicated to the project.
Middle East Crews Receive Numerous Safety
Honors
Several Middle East crews were honored by their customers
for their outstanding safety performances in 2007. The SHARQ
crew, led by Steve McKee, the Tasnee crew, led by Dave Hobbs,
the Sipchem crew, led by John Smith, the Daelim crew, led by
Conrado Noche, and the Habshan crew were all recognized for
reaching millions of work-hours without a lost time accident.
In addition, individual members of both the SHARQ and Yanbu
crew, led by Conrado Noche, were honored for their commitment
to safety.
From the SHARQ crew, Carmelito Rubi, Dante Leano and
Rodrigo Robrigado were each named Supervisor of the Month.
Tirso Catubay, Edgar Derong, Orlandino Rasay, and Rodante
Ilao from the Yanbu crew were each named Safe Worker of the
Month by the Linde Project Team.
The CB&I crew at the RasGas RL3 Common Offplots projects in
Doha, Qatar, was given a Five Star Award by Fluor. This award
recognizes the achievement of 750,000 work-hours without a
recordable injury in 2006 and 2007.
Also highlighted are some of the many milestones CB&I has
achieved in the course of its 118-year history – accomplishments
that extend across the markets the company serves, providing
added value to customers worldwide.
Tradeshows
CB&I will participate in many global tradeshows and conferences
in 2008. The following are some of the upcoming events:
n ARTC – Bangkok, Thailand, March 4-6, 2008
n Gastech – Bangkok, Thailand, March 10-13, 2008
n NPRA Annual Meeting – San Diego, Calif., USA,
March 9-11, 2008
n NPRA Petrochemical Conference – San Antonio, Texas, USA,
March 30-April 1, 2008
n ERTC Annual Meeting – Vienna, Austria, Nov. 11-13, 2008
n ADIPEC – Abu Dhabi, UAE, Nov. 3-6, 2008
n Power-Gen – Orlando, Florida, USA, Dec. 2-4, 2008
Hot Off The Press…
Two CB&I technical articles have been published recently, as
listed below. The full text of these articles is available in the
“About CB&I” section of our Web site at www.CBI.com.
“Optimize Your Hydrogen Plant Operations” – Hydrocarbon
Processing, September 2007. Due to the worldwide demand for
hydrogen, it has become important for refiners to maintain, or
in some cases, increase the hydrogen production from their
existing hydrogen plants. According to this article, proper
plant monitoring is essential to achieving this objective. There
are several areas to focus on when monitoring the performance
of a hydrogen plant. Particular areas of interest include the
feedstock, catalyst, reformer and steam system.
“CB&I Helps the UK Build Up LNG Import Network and Storage
Capacity” – LNG Journal, November/December 2007. The North
Sea natural gas reserves that allowed the United Kingdom to
become self-sufficient are now in decline, while new discoveries
are becoming smaller and less frequent. All the while, UK gas
usage is forecast to continually increase. In response to the
predicted domestic shortfalls, the UK has created a more
liberalized gas market in which suppliers can respond to the
changing supply/demand balance. One of their strategies is
the construction and expansion of LNG import terminals, which
will provide additional flexibility and security of gas supply for
the country. This article focuses on two of these projects, the
South Hook LNG import terminal and the expansion at Isle of
Grain, and describes how they will affect natural gas supply
and demand in the UK.
18 19

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
17,000 employees in more than 80 locations, CB&I safely and reliably
executes projects worldwide.
www.CBI.com
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